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Contracts • Terms of the Contract
K#084
Legal Definition
Yes. The parol evidence rule does not prevent a court from admitting evidence of earlier words from parties for the limited purpose of determining whether there is a defense to enforcement (e.g., misrepresentation, fraud, duress).
Plain English Explanation
The purpose of the Parol Evidence Rule is to grant a default-level of respect for the terms of a contract and not allow parties to undermine the terms of the contract using previous negotiations or discussions. After all, if a signed contract exists, it means that the parties ultimately said, "This is what we are agreeing to."
However, courts will not allow the Parol Evidence Rule to prevent a party from showing evidence that a valid defense to a contract's enforcement exists. Though such evidence would be parol evidence, its purpose would be limited to show that the contract would not have been entered into without some wrongful act by one of the parties.
However, courts will not allow the Parol Evidence Rule to prevent a party from showing evidence that a valid defense to a contract's enforcement exists. Though such evidence would be parol evidence, its purpose would be limited to show that the contract would not have been entered into without some wrongful act by one of the parties.
Visual Aids
Related Concepts
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