Contracts

In Pennsylvania, what is the significance of the 'entire agreement' (merger) clause in a real estate contract?

AIt confirms the buyer and seller have merged their separate offers into one document
BIt provides that the written contract represents the parties' complete agreement, superseding all prior oral or written negotiations✓ Correct
CIt allows the parties to merge the deposit into the purchase price at closing
DIt confirms that real estate and personal property are merged in the sale

Explanation

The merger clause (entire agreement clause) states that the written Agreement of Sale constitutes the entire agreement between the parties, superseding all prior negotiations, representations, and agreements. This prevents either party from claiming the contract was modified by oral discussions.

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