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

The parol evidence rule is a legal concept used in contract law that states that when parties to a contract have put the agreement in writing, any evidence of prior or contemporaneous oral agreements or other written documents that contradict, modify, or add to the written agreement will not be admitted as evidence in a court of law. The rule also applies to claims of a verbal agreement that occurred after the written agreement. This rule was established to make sure that when parties to a contract decide to enter into a written agreement, they do so knowing that it is their final, binding agreement. The importance of the parol evidence rule lies in its ability to protect the parties to a contract. Without this rule, a party to a contract could come to court with evidence of a side agreement that was not included in the written agreement, or of a statement by one of the parties that changes the meaning of the agreement. This would make it hard for the other party to prove what the original agreement was and could create a messy legal situation. The parol evidence rule creates a sense of security for those entering into contracts and ensures that the terms of a written contract are enforceable. This encourages parties to contracts to enter into agreements with the confidence that it will be binding and honored by both parties.

Related FAQs

What is a novation of a contract?
What is a contractual waiver?
What is a contract for services?
What is the parol evidence rule and why is it important?
What is a contract of indemnification?
What is a contract of employment?
What is an indemnity clause?
What is a voidable contract?
What is a creditors’ rights clause?
What is frustration of purpose?

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

Related FAQs

Related Blog Posts