Question

The parol evidence rule is based on the theory that either there never was an oral agreement or, if there was, the parties purposely abandoned it when they executed their written contract?

a) True
b) False

Answer 1

The parol evidence rule protects the integrity of written agreements by preventing the use of prior or contemporaneous oral agreements to alter written contracts, unless in special circumstances. It is untrue that the rule is based on the absence of any oral agreement or its intentional exclusion by the parties.

Step-by-step explanation:

The parol evidence rule is a principle in the law of contracts that governs what kind of outside evidence (i.e., parol or oral evidence) parties can use when interpreting a written contract. The rule is predicated on the belief that the written contract embodies the final agreement between the parties. The statement that the parol evidence rule is based on the theory that there was never an oral agreement or that the parties purposely abandoned any such agreement when they put their contract in writing is false.

The purpose of the rule is to protect the integrity of written agreements by prohibiting parties from trying to modify the terms of their written contract with evidence of prior or contemporaneous agreements unless special circumstances apply, such as the existence of a void or incomplete contract, or if correcting a clerical error is necessary.