Parol Evidence Rule

Question 1

What is the Parole Evidence Rule?

Answer 1

Contract terms that constitute the final expressions of parties’ agreements may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement, but may be explained or supplemented by consistent additional terms.

Question 2

What is a complete agreement?

Answer 2

An agreement with all terms defined

Question 3

What is an integrated agreement?

Answer 3

An agreement that is not a complete expression of the terms

Question 4

What are the exceptions to the Parol Evidence Rule?

Answer 4

(1) Parol evidence may be used to determine if the contract is complete or integrated.
(2) Parol evidence may be used to clarify the meaning of an ambiguous term.
(3) Parol evidence may be used to support a defense to enforceability.

Question 5

When does the Parol Evidence Rule apply.

Answer 5

Only to evidence/agreements BEFORE contract formation.