Core Elements Of The Parol Evidence Rule In Contracts

Understanding the details of a contract can sometimes feel like solving a complex puzzle. When disputes arise, how do we determine what the agreement really said? This is where the Parol Evidence Rule comes into play, serving as a guideline for courts to decipher the intentions behind a contract’s terms. In this article, we will unpack this legal principle in a way that simplifies the legal jargon and makes it accessible without diluting its complexity.

‘Thoughts on the Law’ ©

I. Rule and Rationale

Picture a contract as the final script of a play, where every scene and dialogue is carefully included. The Parol Evidence Rule underscores that only what is in this “final script” of a written contract is considered, barring any “deleted scenes” or “behind-the-scenes” conversations from altering the agreed terms. Take, for instance, someone leasing a vehicle under the agreement that it includes a maintenance package. If the final contract does not mention this package, they cannot later claim it was part of the deal. The philosophy here is straightforward: a written contract embodies all terms that the parties have agreed upon, hence any omission is deliberate.

II. Integrated Agreements

Think of the parol evidence rule like the “final answer” on a game show. Once you have…