What is the parol evidence rule and why is it important?

The parol evidence rule is an important concept in contract law. It states that if two people have a written contract, additional evidence of what was agreed to orally cannot be used against the written contract. In other words, verbal representations made prior to or at the same time as the written contract cannot be used to modify, explain, or contradict the written agreement. The Parol Evidence Rule serves an important purpose. It protects parties to a contract from being held to an agreement they never knew of or agreed to. Without this rule, one party could come in with a separate oral agreement and try to change the written contract terms. This would create an unpredictable and unstable business environment. The Parol Evidence Rule is also important for upholding the integrity of written contracts. Without it, a court could be asked to look into the minds of the parties to try to understand the intent behind the words in the written contract. This would take away from the importance of written contracts and the fact that they should be legally binding and enforceable. Ultimately, the Parol Evidence Rule encourages people to create clear and definitive written agreements that can be relied on and legally enforced. It also allows people to enter into an agreement with the belief that the written contract accurately reflects all facts and terms agreed upon.

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What is the parol evidence rule and why is it important?

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