Friday, August 20, 2010

Parol Evidence Rule

According to the Oxford Law Dictionary:

Parol Evidence: "Evidence given orally, as opposed to documentary evidence."

Parole Evidence Rule: "The rule that parol evidence cannot be given to contradict, alter, or vary a written document unless there are allegations of fraud or mistake."

The parol evidence rule has many exceptions:

  1. When the written agreement didn't intend to incorporate all the terms.
  2. To prove terms which must be implied into the agreement
  3. To prove a custom which must be implied into the contract
  4. To show the contract is invalid (misrepresentation, fraud, mistake, non est factum)
  5. To show the document should be corrected
  6. To show that the contract has not yet come to fruition or that it is no longer operates
  7. To prove the existence of a collateral contract
Because there are so many exceptions, the Parol Evidence Rule has very little practical effect.

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