Parol evidence is a key concept in contract law, which has significant implications for any legal agreement. If you`re working in the legal field, a basic understanding of parol evidence is essential to ensure that you can accurately interpret and apply contract terms.
In simple terms, parol evidence refers to any oral or written communication that occurs before or at the time of a contract`s formation and that is not included in the written agreement. This evidence can include discussions, negotiations, and agreements made outside of the contract.
The concept of parol evidence comes up primarily in situations where the terms of a written contract conflict with the terms of a prior oral agreement or understanding. The question then becomes whether the terms of the written contract supersede the prior oral agreement, or whether the oral agreement should remain in effect.
Generally, courts tend to give greater weight to the written contract, and will only consider parol evidence if the written agreement is ambiguous or incomplete. If the written contract is clear and unambiguous, courts will generally not consider any parol evidence that seeks to modify the written terms.
However, there are some exceptions to this principle. For example, if a party can demonstrate that there was fraud, duress, or mistake in the formation of the written contract, then parol evidence may be admissible to clarify the true intentions of the parties.
Another exception to the parol evidence rule is known as the “course of dealing” or “course of performance” exception. This exception recognizes that parties to a long-term or ongoing contract may have established a consistent pattern of behavior that amounts to an agreement that qualifies as parol evidence.
It`s worth noting that the application of the parol evidence rule can vary significantly depending on the jurisdiction, the specific facts of the case, and the terms of the agreement at issue. As a result, it`s always important to consult with an experienced contract attorney when dealing with any issues related to parol evidence.
In conclusion, understanding the concept of parol evidence is essential for anyone working in contract law. It`s a fundamental principle that can significantly impact the interpretation and application of legal agreements, and should be carefully considered whenever there is any question or dispute about the terms of a contract.