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Law

The Parol Evidence Rule and Its Exceptions in Contract Law

Quick fact

The parol evidence rule often surprises non-lawyers: it can exclude prior oral agreements or written drafts from being used to contradict a final written contract, even if those prior talks were honest. But the rule has carve-outs for cases like fraud, mistake, or genuine ambiguity, making it a balancing act between written finality and fairness.

Why this is interesting

You've just signed a detailed contract, but later you discover the other party promised something verbally that never made it into the written text. Can you sue to enforce that promise? The answer isn't as simple as you might think.