In short
Under the parol evidence rule, when parties intend a written contract to be their final and complete agreement, evidence of earlier or simultaneous oral agreements can't be used to change or contradict its terms.
Key takeaways
- It doesn't bar evidence of fraud, duress or mistake, or evidence that clarifies an ambiguous term.
- It doesn't apply to changes the parties agree after the contract is signed.
- It is different from the statute of frauds, which decides which contracts must be in writing.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?