Editing Contracts/Parol evidence rule
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==Overview== | ==Overview== | ||
The rule applies to parol evidence, as well as other <span style="background:yellow">extrinsic evidence</span> (such as written correspondence that does not form a separate contract) regarding a contract. If a contract is in writing and final to at least one term (integrated), <u>parol</u> or <span style="background:yellow">extrinsic evidence</span> will generally be excluded.<ref name=Codelfa>{{cite AustLII|HCA|24|1982|litigants=[[Codelfa Construction Pty Ltd v State Rail Authority of NSW]] |parallelcite=(1982) 149 [[Commonwealth Law Reports|CLR]] 337 |courtname=auto |date=11 May 1982}}.</ref> However, there are a number of exceptions to this general rule, including for | The rule applies to parol evidence, as well as other <span style="background:yellow">extrinsic evidence</span> (such as written correspondence that does not form a separate contract) regarding a contract. If a contract is in writing and final to at least one term (integrated), <u>parol</u> or <span style="background:yellow">extrinsic evidence</span> will generally be excluded.<ref name=Codelfa>{{cite AustLII|HCA|24|1982|litigants=[[Codelfa Construction Pty Ltd v State Rail Authority of NSW]] |parallelcite=(1982) 149 [[Commonwealth Law Reports|CLR]] 337 |courtname=auto |date=11 May 1982}}.</ref> However, there are a number of exceptions to this general rule, including for partially integrated contracts, agreements with separate consideration, to resolve ambiguities, or 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 earlier 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). | To take an example, Carl agrees in writing to sell Betty a car for $1,000, but later, Betty argues that Carl earlier 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). |