Parol Evidence Rule

Question 1

What is the Parole Evidence Rule?

Answer 1

Applies to integrations where the parties to a K express in writing the intent that it embody the final expression of their bargain. If it is not an integration (such as a draft) the PER doesn’t apply

Question 2

What are the types of integrations?

Answer 2

Complete and partial

Question 3

What is a complete integration and how does the PER apply?

Answer 3

Complete integration: when a writing completely expresses all of the terms of the parties’ agreement.

All other expressions or statements (written or oral) are inadmissible

A merger clause is strong evidence that it is a complete integration (recites that the agreement is the complete agreement b/w the parties)

Question 4

What is a partial integration and how does the PER apply?

Answer 4

Partial integration: when the writing sets forth some terms but not all.

Other written or oral expressions made prior or during ARE admissible to supplement the writing as long as it does NOT contradict the writing

Question 5

What are the exceptions to PER?

Answer 5

Extrinsic evidence is admissible for the following:

1. Defenses: to establish defense to formation or enforcement of K
2. Separate deals: if it reps a distinct and separate K
3. Conditions precedent: if a party asserts that there was an oral agreement that the written K would not become effective until this occurs
4. Ambiguity and interpretation: to clarify