What is the parol evidence rule?

What is the parol evidence rule?

• A. A law that permits modification of contracts without consent
• B. A guideline for the admissibility of electronic contracts
• C. A rule that prohibits outside evidence contradicting a written contract
• D. A rule allowing additional evidence to clarify contract terms

Answer: (C)

The parol evidence rule is a principle in contract law that establishes that once a written contract is finalized and intended to be a complete representation of the parties' agreement, any outside evidence—such as oral statements or prior written agreements—that contradicts or alters the terms of this written contract is inadmissible in court. This rule is designed to preserve the integrity of written agreements and prevent misunderstandings regarding what the parties have actually agreed upon. In essence, it maintains that if a contract is meant to encompass the entire agreement, then elements discussed prior to or outside of that written contract cannot be used to challenge or change the explicit terms documented within it. This helps provide certainty in contractual relationships since parties need to rely on the written terms as the definitive source for their obligations and rights. Thus, the correct understanding of the parol evidence rule aligns with the idea that it prohibits outside evidence intended to contradict a written contract, ensuring that once the contract is in writing, those terms hold primary importance.

The parol evidence rule is a principle in contract law that establishes that once a written contract is finalized and intended to be a complete representation of the parties' agreement, any outside evidence—such as oral statements or prior written agreements—that contradicts or alters the terms of this written contract is inadmissible in court. This rule is designed to preserve the integrity of written agreements and prevent misunderstandings regarding what the parties have actually agreed upon.

In essence, it maintains that if a contract is meant to encompass the entire agreement, then elements discussed prior to or outside of that written contract cannot be used to challenge or change the explicit terms documented within it. This helps provide certainty in contractual relationships since parties need to rely on the written terms as the definitive source for their obligations and rights. Thus, the correct understanding of the parol evidence rule aligns with the idea that it prohibits outside evidence intended to contradict a written contract, ensuring that once the contract is in writing, those terms hold primary importance.