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Editing Contracts/Parol evidence rule
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# to establish contract defenses. | # to establish contract defenses. | ||
To take an example, Carl agrees in writing to sell Betty a car for $1,000, but later, Betty argues that Carl | To take an example, Carl agrees in writing to sell Betty a car for $1,000, but later, Betty argues that Carl told her that she would only need to pay Carl $800. The parol evidence rule would generally prevent Betty from testifying to this alleged conversation because the testimony ($800) would directly contradict the written contract's terms ($1,000). | ||
The precise extent of the rule varies from jurisdiction to jurisdiction. As a preliminary or threshold issue, the court may first determine if the agreement was in fact totally reduced to a written document or (in US terminology) fully "integrated". In the case of ''State Rail Authority of New South Wales v Heath Outdoor Pty Ltd'' [[Michael McHugh (judge)|McHugh J]] held the parol evidence rule has 'no operation until it is first determined' that all the terms of the contract are in writing.<ref name="SRA v Heath">''State Rail Authority of New South Wales v Heath Outdoor Pty Ltd'' (1986) 7 [[NSW Law Reports|NSWLR]] 170 at 191, [[NSW Court of Appeal]] [http://www.austlii.edu.au/cgi-bin/LawCite?cit=7+NSWLR+170 LawCite records].</ref> This threshold question applies even in those jurisdictions that apply a very strong form of the parol evidence rule, called the "[[Four Corners (law)|Four Corners Rule]]". | The precise extent of the rule varies from jurisdiction to jurisdiction. As a preliminary or threshold issue, the court may first determine if the agreement was in fact totally reduced to a written document or (in US terminology) fully "integrated". In the case of ''State Rail Authority of New South Wales v Heath Outdoor Pty Ltd'' [[Michael McHugh (judge)|McHugh J]] held the parol evidence rule has 'no operation until it is first determined' that all the terms of the contract are in writing.<ref name="SRA v Heath">''State Rail Authority of New South Wales v Heath Outdoor Pty Ltd'' (1986) 7 [[NSW Law Reports|NSWLR]] 170 at 191, [[NSW Court of Appeal]] [http://www.austlii.edu.au/cgi-bin/LawCite?cit=7+NSWLR+170 LawCite records].</ref> This threshold question applies even in those jurisdictions that apply a very strong form of the parol evidence rule, called the "[[Four Corners (law)|Four Corners Rule]]". |