Question

What is the Parol Evidence Rule? Identify 3 exceptions to it.

Answer 1

The Parol Evidence Rule is a principle in contract law that prevents the introduction of evidence that would contradict or modify the terms of a written contract. The three exceptions to the rule are subsequent agreements, collateral agreements, and fraud, misrepresentation, or mistake.

Step-by-step explanation:

The Parol Evidence Rule is a principle in contract law that prevents the introduction of evidence, either written or oral, that would contradict or modify the terms of a written contract.

There are three exceptions to the Parol Evidence Rule:

1. Subsequent Agreements: If the parties make a subsequent agreement or modification to the written contract, the Parol Evidence Rule does not apply.
2. Collateral Agreements: The Parol Evidence Rule does not apply if the additional evidence pertains to a separate agreement that is not part of the written contract.
3. Fraud, Misrepresentation, or Mistake: If evidence is presented to show that there was fraud, misrepresentation, or mistake in the formation of the written contract, the Parol Evidence Rule may be set aside.