What is a merger clause?

A merger clause is a legal term that appears in a contract as a way to prevent a party from making future changes to the contract. In Mississippi, a merger clause will typically state that the contract is the “final, complete and exclusive statement of the agreement” between the two parties and that the parties have no other additional agreements or understandings. The purpose of a merger clause is to prevent one party from claiming that the other party had agreed to something that was not set forth in the contract. In other words, a merger clause prevents either party from making later claims that other oral or written agreements or representations had been made. This ensures that the written contract provides all of the important details of the agreement between the two parties, and prevents any confusion or disputes regarding the terms of the agreement. Therefore, it is important to include a merger clause in your contracts if you do not wish to be bound by any negotiations or agreements that were not set forth in the contract.

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