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1. Parole Evidence Rule
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2. Parole evidence rule
Eliminates usage of certain evidence that contradicts, adds
or alters the written contracts.
parole: word, oral, or spoken.
Sometimes extends to written terms.
In law: parole refers to both written and oral terms agreed
before the written contracts came into effect, but missing
in the final contracts.
Also incorporates oral agreement made at time of writing
the contracts, but also missing in the written contracts.
Rule relates to evidence that one party provides as part of
contract, but absent in written contract
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3. Parole evidence rule
Protects sanctity of written contracts from both bad memories
and perjury.
Establishes genuine parts of written contracts by limiting
introduction of oral evidence not part of the written contracts.
Rule dates back over four hundred years
Basic idea: when writing agreements, parties should be able to
draft documents that are not prone to implied meanings.
Argues that once parties determine their complete and final
agreements, external evidence should not contradict or
supplement final agreements.
Rarely, rule allows introduction of extrinsic evidence to resolve
ambiguity, prove the defense of written document, or establish a
collateral agreement.
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4. Parole evidence rule
Could block the fact-finder from evaluating external
evidence missing in the final document.
Irrespective of any evidence suggesting that involved
parties intended such oral agreements to be part of final
agreement.
Any alleged written agreement or oral agreement of
contemporaneous nature is inadmissible to contradict,
add, or vary a written contract that is complete.
Eliminates breach of a contract
Court may evaluate the relevant evidence of contract or
face of contract to determine its integration.
Depending on court method, results may vary.
Rule application may differ among regions, but without
contradiction.
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5. Permissibility of parole Evidence
Certain cases allow parole evidence
In which parole evidence plays significant roles in
interpretation of written contracts.
Include:
a. To deal with an ambiguous issue – when court finds
something vague in contract that may arise from the
inaccuracy of words
b. when the parties want to show that an instrument in the
agreement does not express the complete agreement.
c. when parole evidence is pertinent to the meaning of a
contract term.
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