Reference no: EM131659080

Question: Case Problem with Sample Answer. Novell, Inc., owned the source code for DR DOS, a computer operating system that Microsoft Corp. targeted with anticompetitive practices in the early 1990s. Novell worried that if it filed a suit, Microsoft would retaliate with further unfair practices. Consequently, Novell sold DR DOS to Caldera, Inc., the predecessor in interest to Canopy Group. The purposes of the sale were to obligate Canopy to bring an action against Microsoft and to allow Novell to share in the recovery without revealing its role. Novell and Canopy signed two documents: a contract of sale, obligating Canopy to pay $400,000 for rights to the source code, and a temporary license, obligating Canopy to pay at least $600,000 in royalties, which included a percentage of any recovery from the suit. Canopy settled the dispute with Microsoft, deducted its expenses, and paid Novell its percentage. Novell filed a suit in a Utah state court against Canopy, alleging breach of contract for Canopy's deduction of expenses. Canopy responded that it could show that the parties had an oral agreement on this point. On what basis might the court refuse to consider this evidence? Is that the appropriate course in this case? Explain. [Novell, Inc. v. Canopy Group, Inc., 2004 UT App. 162, 92 P.3d 768 (2004)]