I am trying to understand Parol Evidence Rule but after spending such a long time, still not clear, even not 50%. I am getting most of questions wrong. I also tried to undetstand its explaination but...
Can anyone explain this rule also its usage in simple word. I mean the basic concept.
Joined: 08 Jan 2010 Location: United States
Online Status: Offline Posts: 107
Posted: 08 Jan 2010 at 15:29 | IP Logged
Parol Evidence is a defense used in court to prevent a
party to a contract from entering into evidence any
written or oral statements which contradict a fully
integrated (final with respect to both parties) contract.
Essentially, any negotiations, agreements, or documents
prepared prior to the final agreement between the parties
is garbage and cannot be enforced by a court of law.
Example:
Imagine you have a timeline of events. On Feb. 1, A and
B agreed to a written contract for A to sell B his
motorcycle for $1,000.
Feb. 1 marks a point in time at which a fully integrated
contract has been set. Everything that was discussed
between A and B before Feb. 1 is out the window and the
Parol Evidence rule prevents either party from bringing
these discussions into evidence in court.
Additionally, if A and B made contemporaneous agreements
while they were signing the written contract, the Parol
Evidence rule would prevent this agreement from being
entered into evidence in court, thus it is unenforceable.
Furthermore, any agreements between A and B made AFTER
their final integrated contract IS enforceable in court
and is not prevented by Parol Evidence defenses.
The idea of Parol Evidence is one of the cornerstones of
contract integration. The idea is that people who are
entering into contracts should be clear about those
things that are really important to them and make SURE
that those things are clearly covered in the final
agreement.
Great! now I got it. Thanks alot your explaination is much better than Beckers.
Anything disucussed, agreed or documented before the integrated agreement is worthless. What we have on final agreetment this is enforceable....
When parties sign integrated agreement, then it is presumption that both parties read it, understand, and agreed with all term and conditions........right ?
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Topic: Contract - Parol Evidence Rule
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