4. Parol Evidence Rule

Question 1

What is the meaning of Parol Evidence Rule?

Answer 1

When the terms of an agreement have been reduced to writing, it is considered as containing all the terms agreed upon and there can be, as between the parties and their successors-in-interest, no evidence of such terms other than the contents of the written agreement. (Sec. 10, Rule 130, ROC, as amended)

Question 2

What is Parol Evidence?

Answer 2

Parol evidence is evidence outside of the agreement of the parties while the parol evidence rule prevents the presentation of such parol evidence.

Question 3

Rationale of parol evidence?

Answer 3

When the parties have reduced their agreement in writing, it is presumed that they made such writing as the repository of all terms of the agreement, and whatever is not found in the said writing must be considered as waived and abandoned. (Tan, 2010)

Question 4

Requisites for the Application of the Rule

Answer 4

1. There must be a valid contract;
2. The terms of the agreement must be reduced to writing. The term “agreement” includes wills;
3. The dispute is between the parties or their successors-in-interest; and
4. There is dispute as to the terms of the agreement.

Question 5

Exceptions to Parol Evidence Rule

Answer 5

A party may present evidence to modify, explain or add to the terms of the written agreement if he or she puts in issue in a verified pleading the following: (F-I-V-E)

1. Failure of the written agreement to express the true intent of the parties thereto (2001 BAR);
2. Intrinsic ambiguity, mistake or imperfection in the written agreement;
3. Validity of the written agreement; or
4. Existence of other terms agreed to by the parties or their successors in interest after the execution of the written agreement. (Sec. 10, Rule 130, ROC, as amended)

Question 6

Distinction bet Original Document Rule v. Parol Evidence Rule

Answer 6

O1: The original document is not available or there is a dispute as to whether said writing is original

P1: Presupposes that the original document is available in court

O2: Prohibits the introduction of secondary evidence in lieu of the original document regardless of whether it varies the contents of the original

P2: Prohibits the varying of the terms of a written agreement

O3: Applies to all kinds of writings

P3: Applies only to written agreements (contracts) and wills

O4: Can be invoked by any party to an action whether he has participated in the writing involved.

P4: Can be invoked only when the controversy is between the parties to the written agreement, their privies, or any party affected thereby like a cestui que trust