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Economics

The Parol Evidence Rule and Its Application to Integrated Contracts

Quick fact

The parol evidence rule excludes prior oral or written agreements that contradict a final written contract, but it does not bar evidence of fraud, duress, or conditions precedent, and it only applies when the writing is deemed a complete integration.

Why this is interesting

You sign a contract after months of negotiations, but later discover that an important promise made during talks was never written down. Can you enforce it? The parol evidence rule may say no—surprising many.