Parol Evidence Rule

Question 1

What does the Parol Evidence Rule govern?

Answer 1

1. Both oral and documentary evidence of negotiations and other communications between the parties
2. Communications that took place prior to or contemporaneously with the execution of the written contract

Question 2

P.E.R. Analysis

Answer 2

Step 1: Determine why the evidence is being introduced

Step 2: Does the evidence relate to a term or contract which is integrated?

Question 3

P.E.R. Rule

(page 142)

Answer 3

• When parties have adopted a writing as their agreement,
• and intend that the writing represent their full agreement,
• no evidence can be admitted to vary, contradict, add to, or subtract from the obligations as they are stated in the writing

Question 4

P.E.R. Exceptions

Answer 4

1. Fraud
2. Mistake
3. Illegality
4. Duress
5. Partial integration
6. Conditions precedent

Question 5

Full Integration

Answer 5

The terms contained within the contract are intended to be final discussion as to those specific terms

Question 6

Complete Integration

Answer 6

The parties intend the contract to represent a “complete” and exclusive statement of all the terms

Only the terms contained within the written agreement are considered part of the contract

Question 7

What does the P.E.R. NOT apply to?

Answer 7

Does not apply to agreements into subsequent to the execution of the written document

Evidence would be admissable

Question 8

When is parole evidence admissable?

Answer 8

1. To explain or interpret the terms of a written contract OR ambiguous terms
2. To show that the parties used words in a nontraditional manner or spoke in code