13-5 The Parol Evidence Rule

University:
University of North Carolina at Charlotte
Course:
BLAW3150 | Business Law
Academic year:

2023
Views:

115

Pages:

4
Author:

Alexa Livingston

13-5 The Parol Evidence Rule • Under the parol evidence rule, if a court finds that a written contract represents the complete and final statement of the parties’ agreement, then it will not allow either party to present parol evidence (testimony or other evidence of communications between the parties that is not contained in the contract itself). 13-5a Exceptions to the Parol Evidence Rule 1. 2. 3. 4. 5. Contracts subsequently modified Voidable or void contracts Contracts containing ambiguous terms Incomplete contracts Prior dealing, course of performance, or usage of trade 6. Contracts subject to an orally agreed-on condition precedent 7. Contracts with an obvious or gross clerical (or typographic) error 13-5b Integrated Contracts • An integrated contract is a written contract that constitutes the final expression of the parties’ agreement. • Evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible. • If a contract contains all of the terms of the parties’ agreement, then it is completely integrated. If it contains only some of the terms and not others, it is partially integrated. Exhibit 13-4 The Parol Evidence Rule