What is the purpose of a "merger clause" in contracts?

A merger clause serves a crucial purpose in contracts by clarifying that any prior agreements, discussions, or understandings are superseded by the written contract itself. This helps to ensure that all parties are on the same page regarding the terms of the agreement as they have been officially documented. By affirming the written contract as the final agreement, the merger clause protects the integrity of the contract, preventing any claims based on earlier negotiations or discussions that are not included in the final written document. This is essential as it minimizes ambiguity and reinforces the intention that the written contract is comprehensive and complete.

In the context of contract law, it solidifies the notion that the parties involved intended for all aspects of their agreement to be found within the finalized contract, thus providing clarity and reducing potential disputes over what was agreed upon outside of the written terms.