When might the parol evidence rule be disregarded?

When might the parol evidence rule be disregarded?

• A. When both parties agree to waive it
• B. In the case of fraud or mistake
• C. Every time a contract is signed
• D. When no written agreement exists

Answer: (B)

The parol evidence rule may be disregarded in cases of fraud or mistake because these circumstances can significantly impact the validity of a contract. This rule generally prohibits the introduction of prior or contemporaneous oral statements that contradict the written terms of a contract. However, if one party can demonstrate that there was fraud — such as misrepresentation or deceit regarding a material fact — or a mistake — an error regarding terms that both parties intended to be included in the agreement — a court may allow evidence outside the written contract. This exception helps ensure fairness and justice by allowing the court to consider what actually transpired between the parties rather than enforcing a potentially flawed written agreement. Other scenarios may involve waivers or situations without written agreements, but they do not apply as universally as fraud or mistake, which directly challenge the integrity of the contract itself.

The parol evidence rule may be disregarded in cases of fraud or mistake because these circumstances can significantly impact the validity of a contract. This rule generally prohibits the introduction of prior or contemporaneous oral statements that contradict the written terms of a contract. However, if one party can demonstrate that there was fraud — such as misrepresentation or deceit regarding a material fact — or a mistake — an error regarding terms that both parties intended to be included in the agreement — a court may allow evidence outside the written contract. This exception helps ensure fairness and justice by allowing the court to consider what actually transpired between the parties rather than enforcing a potentially flawed written agreement.

Other scenarios may involve waivers or situations without written agreements, but they do not apply as universally as fraud or mistake, which directly challenge the integrity of the contract itself.