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

The parol evidence rule is a rule of contract law which is important in the state of North Carolina. This rule states that any evidence (oral or written) of a contract that was made before the written contract was signed, cannot be used to change or contradict the terms of the written contract. This means that oral promises or agreements made before a written contract is signed, cannot modify or alter the written agreement, even if the oral agreement seems to contradict or add to the written agreement. The parol evidence rule is important because it eliminates any ambiguity that could result in a misunderstanding between two parties that have agreed to a contract. Without the rule, parties could use oral promises to modify the terms of a written contract. This would be confusing and would lead to disputes that would be difficult to resolve. The parol evidence rule ensures that the terms of a contract are clear and that the parties are legally bound by them. This encourages people to rely on the written contract rather than informal words or promises. This is why it is important, especially when dealing with important contracts such as real estate contracts or contracts involving a large sum of money.

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

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