What is the parol evidence rule?
The parol evidence rule is a rule of contract law that states that when two parties enter into a written contract, the terms of that contract cannot be contradicted by evidence of any prior or contemporaneous agreements. This means that any oral or other non-written agreements made between the parties that do not correspond to the written terms of the contract will usually be invalid. This rule is in place to protect parties to a contract and to ensure that all terms of the contract are clearly stated in writing. In Texas, the parol evidence rule is codified in the Texas Business and Commerce Code. This code states that if a contract is written without fraud or mistake, then parol evidence is not admissible to contradict or vary the terms of the agreement. This means that any evidence of terms or agreements made outside of the written contract will be disregarded. In other words, parties to a contract in Texas must make sure that any agreements they reach are explicitly written in the contract. The parol evidence rule is an important aspect of contract law, and it is vital that parties to a contract understand the rule and follow it. This rule protects both parties by ensuring that no terms of the agreement will be changed after it is signed. Moreover, the rule also prevents misunderstandings between the parties, as any terms they agree to must be explicitly stated in writing.
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