What is the parol evidence rule?

The parol evidence rule is a rule of contract law that exists in Texas. It states that when parties enter into an agreement, any verbal statements or agreements that are related to the agreement or contradict the agreement are not allowed to be used as evidence in court. The purpose of this rule is to protect parties from potential fraud or misunderstandings regarding the agreement. The rule requires that any contract be written and signed by the parties in order to be valid. This is because the written agreement is taken to be an expression of the parties’ entire agreement. Anything that is not included in the written agreement is not considered part of the agreement. Therefore, any verbal statements or agreements related to the contract that are not included in the written agreement cannot be used as evidence in court. The parol evidence rule is designed to ensure that contracts are accurately expressed and are not subject to potential misinterpretations. Without the rule, parties could potentially introduce verbal evidence that contradicts or changes the terms of the written agreement, which could lead to lawsuits and large settlements.

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