Parol Evidence Rule Flashcards
Parol Evidence Rule Definition
Once the parties have reduced their agreement to writing that they intend to contain the final and complete statement of their agreement, neither party may introduce evidence that contradicts or supplements the terms of that agreement.
When does PER come into play?
only when one party claims that the other is in breach for failing to perform obligation and is attempting to influence the legal effect of a written document by offering extrinsic evidence (oral or written) to supplement or interpret its stated terms
Extrinsic Evidence
Evidence found outside the writing of the contract which evidences the parties agreement
Policy behind PER
to promite judicial efficiency and prevent perjury
Parol Evidence Definition
any evidence outside the writing
Exception to PER
Fraud
Steps to determine if evidence admissible
Written? Integrated? To what Degree? What State/Law What type of evidence is allowed? Exceptions (WIDLE)
Exceptions to PER
Fraud in the inducement Fraud, duress, undue influence, mistake or illegality Ambiguity exception --Williston-patent ambiguity only --Corbin --patent or latent ambiguity Collateral Agreements Condition Precedent Subsequent Agreement Scribners Error (FACTSS)
Wholly Integrated
comprises the entire agreement/all terms reduced to writing.
Parol evidence WILL NOT be admitted
unless ambiguous term
Partially Integrated
final as to the terms written but does not emcompass the entire agreement. Court will allow parol evidence relating to matters that supplement the agreement but will prohibit contradictory evidence.
Question of Law or Fact?
Question of Law: judge acts as a gatekeeper and decides which parol evidence can go to the jury. Integration is a question of law.
Willistonian Approach
Classic/4 corners approach.
1. Merger clause will conclusively state that the written agreement is wholly integrated
If no merger clause will look to 4 corners of the agreement to see if it is complete. Will decide if integrated and in what degree based on the writing.
Corbinian Approach
Writing cannot itself prove its ow completeness, thus
judges will consider the written agreement and extrinsic evidence submitted by the parties and make his decision based on the entirety of circumstances to determine if K is integrated and what parol evidene goes to jury (if any)
Cases for Best Approach
Willistonians say permitting extrinsic evidence is doing exactly what the parol evidence rule is designed to avoid
Corbinians - one cannot know the intent of the parties simply by looking at the document
What type of evidence is allowed?
only that which supplements, not contradicts when judge has determined there is only partial integration.
if fully integrated, NO evidence allowed