Pros And Cons Of Parol Evidence Rule

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Parol Evidence Rule The Common Law Parol Evidence Rule enacts a principle of contracts that presumes that a written contract is a complete agreement between the parties to the contract. The rule forbids any introduction of the evidence before the jury or judge of extrinsic evidence of any communications between the parties that is not contained in the language of the contract that discloses an ambiguity and clarifies it or adds to the written terms of the contract that appears to be whole. In other words, the Parol evidence rule prevents the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary the contractual terms of a written contract when the written contract is intended to be…show more content…
This article does not set any express limit to the admissibility of extrinsic evidence for interpretation of the contract but in fact instructs the authorities to give due consideration to such evidence. Also, Article 11(3) provides that a contract and its terms may be proved by any means, including by witnesses. Therefore, CISG does not include any version of the Parol Evidence Rule. In fact, certain provisions state that other relevant circumstances are to be considered while determining a contract’s terms and its effect. There are also reasons on record for not including this rule in CISG. i. The Parol Evidence Rule, especially as it operates in the United States, is characterized by great variation and extreme complexity. ii. Most of the world's legal systems admit all relevant evidence in contract litigation. iii. It has also been the subject of constant…show more content…
However, the parties are free to adopt a merger clause and to stipulate that oral modifications or rescissions are prohibited ; the latter stipulation is the equivalent of a privately enacted statute of frauds. In the course of negotiations either party may make it clear to the other that it does not intend to be bound until a final writing is prepared and signed. The party’s expression to that effect will be honored. As an apparent exception to the general rule of contractual freedom adopted by Principles , a merger clause cannot effectively bar Parol evidence for the purpose of interpreting

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