Definition

1. Noun:
   • A rule of contract law: The parol evidence rule is a legal principle that generally prohibits the introduction of extrinsic evidence (oral or written) to contradict, vary, or add to the terms of a fully integrated written contract.

Usage

• The rule applies when a written agreement is intended by the parties to be the complete and final expression of their agreement.
• It is used by courts to determine what evidence is admissible when interpreting a contract.
• The rule is a principle of substantive contract law, not merely a rule of evidence.

Examples

• Noun:
  • The judge invoked the parol evidence rule to exclude the testimony about the prior oral agreement.
  • Because the contract was fully integrated, the parol evidence rule barred evidence of the earlier negotiations.
  • An exception to the parol evidence rule allows evidence to clarify an ambiguous term.

Advanced Usage

• "To fall within an exception to the parol evidence rule": To be a situation where extrinsic evidence is allowed, such as to prove fraud, mistake, or to clarify ambiguity.
  • The claim of fraudulent inducement fell within an exception to the parol evidence rule.
• "The rule's purpose is to promote certainty": A key rationale for the rule is to give stability and finality to written agreements.
  • The court emphasized that the parol evidence rule's purpose is to promote certainty in commercial transactions.

Variants and Related Words

• Parol (adj): Relating to or expressed by spoken word; oral. (Often used in the legal phrase "parol evidence").
  • The parol agreement was superseded by the written contract.
• Integration (n): The process of making a writing the complete and final expression of the parties' agreement. A contract can be "fully integrated" or "partially integrated."
  • The merger clause in the contract indicated the parties' intent for full integration.

Synonyms

• Merger rule: A term sometimes used synonymously, especially when referring to the effect of a written contract merging prior agreements.
• Four corners rule: A related doctrine stating that a document's meaning should be determined from within its "four corners," without external evidence.

Related Phrases

• Parol evidence: The extrinsic evidence (oral statements, prior drafts, correspondence) that the rule typically excludes.
  • The attorney objected to the introduction of parol evidence.
• Fully integrated contract: A written agreement intended to be the complete and final statement of the parties' deal, triggering the rule's application.
  • The court found the contract to be fully integrated, thus applying the parol evidence rule strictly.

Noun

1. a rule that oral evidence cannot be used to contradict the terms of a written contract