What is the parol evidence rule?
The parol evidence rule is a rule of law that is used in North Carolina business transactions. It states that if there is a written contract between two parties, any verbal agreements that were made prior to the written contract or that contradict the written contract are not legally enforceable. This rule is often used in court cases when one party is claiming that a verbal agreement was made. The purpose of the parol evidence rule is to ensure that no one side can manipulate the other side into agreeing to something that was not put in writing or is not represented by the written contract. This rule gives parties the confidence to enter into written contracts, knowing that there will not be any later disputes over terms that were not agreed to in writing. The parol evidence rule is especially important in North Carolina business transactions since many of the state’s laws and regulations require that some agreements must be in writing in order to be legally binding. It helps protect all parties involved in a business transaction from being forced to accept terms or obligations that were not agreed to in writing. Without the parol evidence rule, a party could come back later and try to hold the other party accountable for any verbal agreements that were made prior to the written contract.
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