What does the parol evidence rule state regarding oral evidence in contract disputes?

The parol evidence rule is a legal principle that addresses the admissibility of oral evidence in disputes regarding written contracts. This rule stipulates that if a written contract is intended to be a complete and final representation of the parties' agreement, then any oral statements or agreements made prior to or at the same time as the written contract cannot be introduced in court to alter or contradict the written terms.

This concept is based on the understanding that the written document is the definitive source of the agreement, and allowing oral evidence could lead to confusion or inconsistency with what has been formally agreed upon in writing. Therefore, to maintain the integrity of written contracts, the parol evidence rule asserts that oral evidence is generally not admissible to challenge or modify the established terms of the written agreement.

In contrast, oral evidence may be admissible under specific circumstances, such as when there is a claim of fraud, duress, or if the written contract is ambiguous. However, these exceptions do not undermine the primary function of the parol evidence rule, which emphasizes the preference for written documentation as a final recounting of the agreement between parties.