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    Parol Evidence Rule Step by Step

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    LazinessPerSe
    The parol evidence rule is a three-step process for determining whether extrinsic evidence can be used to interpret or add to the terms of a written contract. First, it must be determined if the contract is integrated or not by examining whether it appears final and complete based on its language and context. Second, any extrinsic evidence must be consistent with the written terms and cannot contradict them. Third, there are exceptions if there is a merger clause, improper bargaining, or evidence that the contract was subject to an unwritten condition.

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    Parol Evidence Rule Step by Step

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    LazinessPerSe
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    The parol evidence rule is a three-step process for determining whether extrinsic evidence can be used to interpret or add to the terms of a written contract. First, it must be determined if the contract is integrated or not by examining whether it appears final and complete based on its language and context. Second, any extrinsic evidence must be consistent with the written terms and cannot contradict them. Third, there are exceptions if there is a merger clause, improper bargaining, or evidence that the contract was subject to an unwritten condition.

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    Parol Evidence Rule Step by Step

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    The parol evidence rule is a three-step process for determining whether extrinsic evidence can be used to interpret or add to the terms of a written contract. First, it must be determined if the contract is integrated or not by examining whether it appears final and complete based on its language and context. Second, any extrinsic evidence must be consistent with the written terms and cannot contradict them. Third, there are exceptions if there is a merger clause, improper bargaining, or evidence that the contract was subject to an unwritten condition.

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    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    1K views2 pages

    Parol Evidence Rule Step by Step

    Uploaded by

    LazinessPerSe
    The parol evidence rule is a three-step process for determining whether extrinsic evidence can be used to interpret or add to the terms of a written contract. First, it must be determined if the contract is integrated or not by examining whether it appears final and complete based on its language and context. Second, any extrinsic evidence must be consistent with the written terms and cannot contradict them. Third, there are exceptions if there is a merger clause, improper bargaining, or evidence that the contract was subject to an unwritten condition.

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    PAROL EVIDENCE RULE STEP BY STEP

    PER Trigger: Mutually adopted written K -> Party wants to introduce extrinsic evidence 1) Determine INTEGRATION
    a) Integration Test: Is writing intended to be full and final record of agreement on the whole (complete), or of particular term at issue (partial)? Integration is a question of intent. i) Four Corners Approach: Integration is found if the writing, interpreted as a whole in accordance with the plain meaning of the language used, appears complete and unambiguous, and there is no obvious gap or inadequacy. A) Collateral Agreement Rule: Is the separate agreement related closely enough to the purpose of the K that one would expect to find it in the writing if it had been agree to? Yes = PER bars. Consistency still required. Subject matter / consideration must be distinct and capable of being separately identified. (Mitchell) B) Ambiguous Term: Court examines the ordinary plain meaning of the term to decide if clear. ii) Contextual Approach: Integration is found if the writing, evaluated in full context, appears complete and unambiguous, and there is no obvious gap or inadequacy. A) Naturally Omitted Test: Some relationship exists between parties that would support implying a term missing in an otherwise completely-integrated K. (Masterson) B) Ambiguous Term: Court uses context in which the words were used to establish meaning.

    2) Determine CONSISTENCY
    a) Consistency Rule: No parol evidence relating to any fully-integrated term/writing. Parol evidence permitted to supplement or explain express terms, but cannot contradict or vary express terms.

    3) Determine EXCEPTIONS/SPECIAL RULES


    a) Merger Clause: Asserts that writing is completely integrated. Court only discards under the Contextual Approach with plausible argument that writing is not completely integrated as it appears. b) Improper Bargaining Exception: Evidence allowed to show fraud/duress/mistake or other bases for invalidating the K. c) Condition Exception: Evidence allowed to show that the agreement was subject to a condition.

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