Question

Answer the following, citing relevant legislation and case law in your answer: a) What is the parol evidence rule, and what is the court’s reasoning in applying the rule? (Maximum 100 words) b) List and explain the exceptions to the parol evidence rule.  

Answer 1

A) To explain in simple words parole evidence rule says that outside evidence cannot be used when there is a written and agreed contract between two parties

Eg- if a buyer has made a deal with seller to buy a house for $100000 in a written contract then the buy cannot present any outside evidence saying the price to be less or any other fact.

B) The exceptions for parole evidence rule are

First case in which outside evidence is allowed is to clarify terms in the contract when the terms are ambiguous or missing.

Second case when evidence is allowed is to demonstrate evidence of collateral agreements

Finally, evidence is allowed to demonstrate that party was fraudulently induced to enter in an agreement.