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

The parol evidence rule is a key part of contract law in Nebraska. The rule states that when two parties have an agreement, either verbally or in writing, evidence outside of the written agreement (known as parol evidence) is usually not able to be used to change or modify the agreement. This means the original written agreement governs the parties’ rights and obligations. This rule is important because it allows parties to rely on the written agreement, knowing that they are not subject to evidence outside the document. It also allows parties to freely negotiate the terms of their agreement, without worrying that an outside source may have an effect on the eventual terms. Additionally, it is a protection against fraud and misrepresentation, by ensuring that the written terms are the only terms that matter. The parol evidence rule keeps contracts clear and enforceable. It is important for parties to understand this rule in order to protect their rights and interests. This is especially true when parties are negotiating an agreement, as understanding the parol evidence rule can help them draft a more valid agreement and ensure that their rights are protected.

Related FAQs

What is a promissory note?
What is the law of privity?
What is a contract of adhesion?
What is a contingent contract?
What is a merger clause?
What is a contract of sale?
What is a contract for services?
What are the legal remedies for a breach of contract?
What is a contract?
What are the common types of remedies available?

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

Related FAQs

Related Blog Posts