What is the parol evidence rule?

The parol evidence rule is a legal principle that is applied in contract law within the state of Arizona. It states that when parties enter into an agreement that is reduced to writing, the terms of the contract should be determined by the writing itself. The rule excludes evidence of conversations, negotiations, and agreements that occurred prior to the writing being created, or “parol evidence”, from being used to interpret the terms or clarify any ambiguities within the document. This is done to ensure that the contract is binding and enforceable. When a court is presented with an issue that requires the interpretation of an agreement’s language, it will first look to the written document and interpret the meaning of the words used. If, after the court has read the contract, any ambiguities remain, it will look to extrinsic (external) evidence such as prior conversations and agreements between the parties to determine the meaning of the words. However, if the words of the contract are clear and agreement is not in doubt, extrinsic evidence is not allowed to be used to modify or otherwise change the contract. Thus, the parol evidence rule is used by courts in Arizona to ensure that the written agreement between two parties remains valid and enforceable. This rule prevents the parties from using any parol evidence to contradict or change any terms of the contract that were clearly understood and agreed upon.

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What is the parol evidence rule?

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