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Economics

The Parol Evidence Rule in Contract Interpretation Disputes

Quick fact

The parol evidence rule can bar a party from presenting evidence of a prior oral promise that contradicts the written contract, even if the promise was made in good faith and was a key reason for signing.

Why this is interesting

You sign a contract to buy a car, but later the dealer says the oral promise of free maintenance isn't in the contract. Can you rely on that promise? The answer may surprise you.