Parity generator and checker circuits are used to detect errors in data transmission. A parity bit is added to data units using even or odd parity rules. Even parity means the total number of 1 bits including the parity bit is even. Odd parity means the total is odd. During transmission, the sender generates parity bits and the receiver checks them to detect errors. Parity can detect single bit errors but not multiple errors or errors in the parity bit itself. Integrated circuits like the 74280 TTL IC contain parity generator and checker functionality to implement error detection during data transmission.