In what circumstances will a court accept evidence of the transactions leading up to and during the making of a contract?
Saskatchewan, Canada
The following excerpt is from Kirzinger v. Kalthoff, 1964 CanLII 392 (SK QB):
However, in view of the defence of illegality, evidence of the transactions leading up to the making of the agreement and the discussions during the making of the agreement sued on was admitted, on the principle that it might have been cast in the form it was to evade a law making it illegal if it embodied the actual terms agreed on and, in such a case, the court may scrutinize the whole transaction and look at the object intended to be effected and disregard the actual form of the contract: Rodrigue v. Dostie and Vachon 1927 CanLII 68 (SCC), [1927] SCR 563.
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