Parol Evidence Rule

Parol Evidence Rule

A legal principle stating that when an agreement is written, it contains all agreed terms, and no external evidence can alter those terms.

Parol Evidence

Any extrinsic evidence intended to vary or contradict a written agreement.

Rationale for the Rule

Assumes that a written agreement is the complete expression of the parties' intent, and anything not included is waived.

Condition Precedent

A condition that can be established by parol evidence since it does not alter an existing contract.

Condition Subsequent

A condition that cannot be established by parol evidence as it involves an existing written contract.

Requisites for Application

Valid contract, written terms, dispute between parties or successors, and a dispute regarding the terms.

Privies to the Contract

The rule does not apply if one party is not privy to the written agreement.

Application to Wills

The parol evidence rule applies to wills, meaning no external evidence can alter the will's terms.

Exceptions to the Rule

Evidence may be admitted to modify or explain a written agreement under specific conditions, such as ambiguity or mistake.

Mistake

A mutual mistake of fact between parties that can be addressed with parol evidence.

Kinds of Ambiguities

Intrinsic (latent), extrinsic (patent), and intermediate ambiguities that affect the interpretation of a document.

True Intent of Parties

Parol evidence can show the true intent of the parties if the written agreement fails to express it.

Original Document Rule

Concerns the availability of the original document and prohibits secondary evidence if the original is not available.

Waiver of the Rule

Failure to invoke the parol evidence rule can result in a waiver of its benefits.

Probative Value

Admissibility of parol evidence does not guarantee its credibility or weight in court.

Interpretation of Documents

The language of a writing is interpreted based on its legal meaning at the place of execution.

Conflict between Provisions

Particular provisions take precedence over general provisions in case of inconsistency.

Circumstances of Interpretation

The context in which a document was created can influence its interpretation.

Presumption on Terms

Terms are presumed to be used in their general meaning unless proven otherwise.

Conflict between Written and Printed

Written words control over printed forms in case of inconsistency.

Deciphering Difficult Writing

Evidence from skilled individuals can clarify difficult-to-read documents.

Dual Interpretations

If an agreement can be interpreted in two ways, the interpretation favoring the party who did not draft the provision prevails.