WEEK10: Interpretation; Parol Evidence

Question 1

Interpretation

Answer 1

Even where the parties have initially agreed on particular words and phrases to describe their contemplated exchange of performances, they may disagree later about the meaning that should be attached to those manifestations of agreement.

Question 2

Parol Evidence

Answer 2

Where the parties have prepared a written agreement, one of them may later contend that this writing does not accurately or completely express their “true” agreement — that there were additional agreements made between them not contained in the writing, or even that the writing in some respect describes their agreement in an inaccurate or misleading fashion. Courts over the years have worked out a method of screening evidence of such “extrinsic” matters, through the application of the so-called “parol evidence rule.”