What is the parol evidence rule?
The parol evidence rule is a legal principle that applies to contracts in the state of Louisiana. The rule states that if two parties have reached an agreement on the terms of a contract, any prior agreements or discussions are not legally enforceable. This determination is based on the idea that any prior agreements or discussions are considered "parol evidence" and cannot be used in court to alter the terms of the written contract. For example, if two parties enter into a contract for the sale of a car, any prior conversations that they had about the sale are not legally binding. The only legally binding agreement is what is written in the contract. If either party wishes to change the terms of the contract, they must do so in writing. Any oral agreements, promises, or modifications made outside of the written contract are invalid and cannot be enforced in court. The parol evidence rule is an important concept in business transaction law because it ensures that contracts are based on written evidence rather than on oral evidence that is more easily forgotten or misremembered. Because of this rule, it is especially important to get any changes or modifications to a contract in writing in order to ensure that they are legally enforceable.
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