What is the parol evidence rule?
The parol evidence rule is a legal concept which comes from Business Transaction Law in the state of Massachusetts. It is basically a rule that states that when two parties have an agreement, any prior discussions or conversations that took place are not allowed to be used as evidence in a court of law. The rule states that when a written contract exists between two parties, any extra information that was not included in the contract is not valid and cannot be used to change or alter the terms of the contract. This rule prevents either party from using oral or written agreements made prior to the written contract as an excuse for not following through with the written agreement. This rule, however, has some exceptions. If the terms of the agreement were modified by the parties before or after the agreement was signed, then that information can be used as evidence. Also, if the contract is found to have been made under duress or fraud, information concerning the circumstances can be used to prove this. The parol evidence rule is an important concept in Business Transaction Law in Massachusetts as it prevents misuse of the written contract. It protects parties from being taken advantage of and ensures that both parties are held to their terms of the agreement.
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