Parol Evidence: Key Insights into Its Legal Definition and Application

Q: Can I use parol evidence to change a written contract?

No, once a contract is finalized in writing, prior oral agreements cannot be used to alter its terms.

Q: Are there exceptions to the parol evidence rule?

Yes, subsequent agreements or evidence to clarify ambiguous terms may be admissible.

Definition & meaning

Parol evidence refers to oral statements or agreements made outside of a written contract. In legal terms, it contrasts with written evidence. While many contracts can be enforced even if they are only verbal, certain agreements, such as those involving real estate, must be documented in writing to be legally binding. The parol evidence rule states that once parties have finalized a written contract, they cannot introduce prior oral agreements to modify or contradict the written terms. This rule ensures that all essential elements of the contract are included in the final document.

Table of content

Legal use & context

The term "parol evidence" is commonly used in contract law. It plays a significant role in civil law contexts, particularly in disputes over contract interpretation. When parties disagree over the terms of a contract, the parol evidence rule limits the evidence that can be presented in court. Users can utilize legal forms to draft contracts that comply with the Statute of Frauds and avoid disputes related to parol evidence.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A contractor and a homeowner sign a written agreement for a home renovation. After the contract is signed, the contractor claims they verbally agreed to additional work. Under the parol evidence rule, this verbal agreement cannot change the terms of the written contract.

Example 2: A business partnership is formed through a written agreement. If one partner tries to introduce previous discussions that contradict the written terms, the court will not consider this evidence due to the parol evidence rule. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Parol Evidence Rule Variations
California	Allows some oral evidence if it clarifies ambiguous terms.
New York	Strictly enforces the parol evidence rule; oral agreements are generally inadmissible.
Texas	Permits parol evidence to show fraud or mistake in the written contract.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Difference
Written Contract	A formal agreement documented in writing.	Parol evidence refers to oral agreements, while written contracts are documented.
Statute of Frauds	A law requiring certain contracts to be in writing.	The Statute of Frauds sets the requirement for written agreements; parol evidence deals with oral agreements.

Common misunderstandings

What to do if this term applies to you

If you find yourself in a situation involving parol evidence, consider the following steps:

Review your written contract carefully to understand its terms.
Document any subsequent agreements or changes made after the contract was signed.
If you are unsure about your rights or obligations, consider consulting a legal professional for tailored advice.
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Quick facts

Parol evidence refers to oral agreements made outside of a written contract.
The parol evidence rule prevents prior oral agreements from altering written contracts.
Certain contracts must be in writing to be enforceable under the Statute of Frauds.
Subsequent agreements can be introduced as evidence.

Key takeaways

FAQs

What is the parol evidence rule?

The parol evidence rule prevents parties from introducing oral statements or agreements that contradict a written contract.