What does the parol evidence rule entail?

The parol evidence rule is a fundamental principle in contract law that restricts the introduction of evidence outside of the written contract when interpreting the terms of that contract. Specifically, this rule asserts that once the parties have reduced their agreement to a final written document, any previous or contemporaneous oral or written statements that contradict, modify, or add to the terms of the written agreement cannot be considered in court.

This rule exists to uphold the integrity of written contracts and to provide clarity and certainty in contractual relations. By limiting the ability to introduce extrinsic evidence, the parol evidence rule ensures that the written terms of the agreement are the primary sources of intent and meaning between the parties. This is crucial in legal disputes, where the focus is on what was formally agreed upon, rather than potentially conflicting oral discussions or informal communication that preceded the contract.

In contrast, the other options do not accurately represent the parol evidence rule: merely allowing any evidence related to contract terms would undermine the purpose of having a written document; asserting that parties are bound by oral agreements conflicts with the notion of a final, written agreement; and the idea that evidence can modify any written contract at any time disregards the need for consistency and proof in contractual obligations. Therefore, the understanding that