Alert - Contracting Parties Wishing to Avoid the Introduction of Parol Evidence Need Only Say So
Simply put, the parol evidence rule (“PER”) states that the terms of a written agreement may not be contradicted by extrinsic evidence of a prior agreement or of a contemporaneous oral agreement. However, the rule does allow the introduction of evidence of consistent or additional terms in order to explain the meaning of the terms of a written agreement. Thus the PER can be a double-edged sword: on the one hand, allowing poorly drafted agreements to attain the meaning that was intended by the parties; but on the other, potentially hurting contracting parties who draft specific contractual language intending that it only mean what is set forth in the four corners of the document. A recent lawsuit, however, Hot Rods, LLC v. Northrup Grumman Systems Corporation(2013) 242 Cal.App.4th 1166...