Parol Evidence Rule: Understanding Its Significance and Exceptions

In general terms, we all must have heard about the term ‘contract law’ which is generally understood by a normal person as a document to buy and sell something. But when we go further into the term, it is not only limited to a copy that assists in buying and selling anything instead, it is a complete documentation process in itself which not only assists in selling and buying anything but it also helps in dealing with all the material and immaterial aspects related to a contract. So, we can easily define a contract as an agreement for the exchange of goods and services legally so that the purpose of both parties can be fulfilled. ‘Contract Law’ itself indicates that it is a part of law that is no doubt essential and definitely requires dedication for its grasp. However, if at any point in time, you find difficulty in contract law and aspects related to it then you can take Law Assignment Help.

Contract and its Basics

The mere reason for the formation of a contract is not only to fulfil the obligation but to avoid any kind of future disagreement. Before knowing more about the contract, we must know that it is an agreement that is formed based on the terms and conditions and when it contains a legal object and fulfils all the obligations of a contract then it becomes enforceable in a court of law and then it becomes a contract because for a contract to be enforced, it must fulfil all the obligation as prescribed that we will be dealing with in detail further. However, there are some Exceptions in contract law and those include the way a contract is being drafted which means a contract needs to be in the required format including all the pre-requisite details which are essential to mention. Often, people consider it normal but the presence of the required detail has its own Significance. 

Essentials of Contract

So till now, we have discussed the basics of the contract in a brief but now we are going to talk about the essentials of the contract which are must to fulfill when it comes to Contract enforcement in a court of law. Let’s start with discussing what is essential for the successful enforcement of an agreement-

• Two Parties- The first stage for the formation of a contract is to have two parties because you cannot sell or purchase anything by yourself. So, a contract needs two parties where one party will make an offer and the other will accept it. Also, these must be Written contracts about which you can know from websites that are providing assistance for law assignments however oral agreements are also valid but they are a bit complex to prove in a court of law. 
• Intent of Legal Obligation- The next thing is that there must be a legal obligation when it comes to the parties because parties that are involved in the contract must have a legal obligation that ultimately aims to stabilise the contract. This simply means that there needs to be a legal relationship between the parties. 
• Case-Specific Contracts-  Although there are some contracts that are case-specific which means that they involve certain conditions that if not taken care of properly then it might lead to Contract disputes. Also, it has the potential to render the contract invalid or void. For example, if we talk about a specific contract then we take an example of an insurance contract because it would be invalid if it did not exist in written form, so from here we can understand the importance of Written agreement.
• Certainty of Meaning- Certainty as the word itself suggests whatever is written in the contract must have a certain meaning that needs to be well defined. Suppose that there are two persons A and B. Now, A said that I would pay the required amount of money to B if B delivered 20 balls to A. So, here what do you think is it a valid contract? No, because the entire contract has no certainty about what amount of price is required to be paid. So, it is one of the important Legal principles that needs to be followed anyhow.
• Performance of agreement must be Possible- For a contract to be valid, it must be clear in all terms as it cannot have any kind of Ambiguity. The contract must be possible to do because if you are entering into a contract then the work that needs to be done must be possible to complete because if you are entering into a contract with someone for doing or accepting something to do which is impossible then the contract will become void. Contract law adheres to this principle seriously in order to make a contract dispute-free.
• Free Consent- Free consent, is another thing to keep in mind because it is something that needs to be incorporated into the contract. Free consent simply means that the decision taken by the parties involved in the contract must agree to the point freely means their opinion should not be influenced due to any factors like coercion, misrepresentation or anything that you can through the help of Academic Buddies where the experts are present to assist you in every possible way.
• Competency of Parties-  The next thing is the competency of parties which means whether the parties are eligible to enter into a contract or not. This means that parties to the contract must be of sound mind, required age as well and not disqualified by the law to enter into a contract. Contractual agreements and the parties involved in the contract must adhere to it because without it the contract would be void or invalid.
• Consideration- The last thing is the consideration part which talks about the consideration that is involved in a contract which means that in return for something the other must get something in return. Also, it needs to be kept in mind that consideration in the contract must be done for a legal object because the involvement of an unlawful object would render it void. If you are having any confusion regarding the consideration as well as legal consideration then you can ask for help from Legal interpretation available at the online assignment doing websites.

Parol Evidence Rule

Since we talk about the basics of contracts as well as their essentials and you can definitely gain more knowledge about it through the Assignments doing websites like Australian law assignment help, now is the time to talk about one of the crucial concepts involved in contract law and that is the parol evidence rule. A legal principle known as the Parol Evidence Rule controls how Extrinsic evidence is interpreted when interpreting written agreements. It mainly pertains to contracts, especially ones that are incorporated fully or partially. According to the parol evidence rule, evidence of contemporaneous or previous oral or written negotiations or agreements is not admissible to change or contradict the Contractual terms of a written agreement when parties enter into one and intend it to be the complete and final expression of their agreement.
To put it another way, the parol evidence rule forbids the insertion of any prior or contemporaneous oral representations or written agreements that might change, contradict, or add to the provisions of the written contract or Prior negotiations if it is intended to be the last and complete expression of the party's agreement. In addition to preventing parties from trying to alter the terms of a contract by adding outside evidence that may have been discussed before the contract's writing, this is done to encourage stability and predictability in contractual agreements.

Significance of Parol Evidence Rule

Earlier, we talked about the parol evidence rule and its basics now is the time to discuss upon the significance of the parol evidence which is important to understand in order to have a better understanding of the subject. Some of the important aspects are dealt with and are mentioned below- 

• Promoting Certainty and Predictability- The parol evidence rule promotes stability and predictability in contractual relationships by maintaining the terms of a written agreement as the ultimate embodiment of the parties' intentions. It guarantees that the parties can depend on the written contract's terms without worrying about unforeseen modifications or miscommunications stemming from earlier discussions.
• Preventing Fraud and Misrepresentation- The rule serves as a deterrent to parties trying to introduce extrinsic material that could contradict the written agreement in order to change the terms of a contract. Ensuring the terms agreed upon in the final written contract are upheld and enforced helps prevent fraud and deception.
• Efficient Dispute Resolution- The parol evidence rule simplifies the Contract interpretation the process of settling contract disputes by restricting the admissible evidence to the written contract itself. It allows for a more effective and targeted resolution of any potential issues by limiting the subject of litigation to the provisions of the contract.

Parol Evidence Rule and it’s Exceptions

Extrinsic evidence that modifies or contradicts the provisions of a written contract is normally not admissible under the parol evidence rule; however, there are a few acknowledged circumstances where courts may permit the admission of such evidence. Typical exclusions from the parol evidence rule include the following:

• Ambiguity- In cases where the contract's language is imprecise or confusing, courts may permit the insertion of extrinsic evidence to elucidate the provisions and ascertain the parties' true intentions.
• Subsequent Agreements- Courts may accept evidence of subsequent agreements or modifications made by the parties to the initial written contract to show how the terms of the agreement have changed.
• Fraud, Misrepresentation or Mistake- If there is proof of fraud, deceit, duress, undue influence, error, or other invalidating circumstances that cast doubt on the legality of the contract, extrinsic evidence might be allowed.
• Illegality or Invalidity- Extrinsic evidence may be introduced in court to prove the unenforceability of a contract if there is evidence that it is illegal or invalid for reasons like lack of legal capacity or public policy violation.