What is the Parole Evidence rule?


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When a contract is reduced into writing, and the contract appears in the writing to be entire, it is presumed that the writing contains all the terms of it and evidence will not be admitted of any previous or contemporaneous agreement, which would have the effect of adding to or varying the contract in any way.

 

 

(The rule applies to two aspects: 1. the content of the contract and 2. the interpretation of contracts…Here the rule applies to interpretation).

 

When a formal document is conclusive of a contract, its meaning can only be determined by reference to words in that document.


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