What is the Parol Evidence Rule?

The Parol Evidence Rule is a well-established legal principle that asserts that once parties have put their agreement into a final written document, prior or contemporaneous oral agreements or negotiations cannot be used to alter or contradict the terms of that written contract. This rule operates under the assumption that the written contract represents the complete and final agreement between the parties, capturing their mutual understanding and intentions as of the time of signing.

By acknowledging this rule, courts aim to uphold the integrity of written agreements and provide certainty and predictability in contractual relationships. As such, it prevents one party from introducing previous statements or agreements that may have been assumed to be part of the contract but were not included in the final written version. This reinforces the importance of thoroughness and clarity in the drafting of contracts, ensuring that all essential terms are incorporated into the final document.

The other options do not accurately reflect the nature of the Parol Evidence Rule. While changing written contracts and renegotiating terms may be possible, they occur under different legal frameworks and do not fall under the definition of this rule. Additionally, guidelines for verbal contracts are not part of the Parol Evidence Rule, which specifically concerns the treatment of written agreements.