1. Section 10.2

2. What You’ll Learn
How to explain the parol evidence rule (p. 215)
How to identify the exceptions to the parol evidence rule (p. 215)

3. What You’ll Learn
How to explain the best evidence rule (p. 216)
How to change a contractual writing (p. 217)

4. Why It’s Important
By understanding the parol evidence and best evidence rules, you will know what business records to keep when you enter a contractual relationship that requires a writing.

5. Legal Terms
parol evidence rule (p. 215)
best evidence rule (p. 216)
duplicate originals (p. 216)

6. Section Outline Special Rules for Written Contracts
Parol Evidence Rule
The Best Evidence Rule
Changing the Writing

7. Pre-Learning Question
What do you think parol evidence is?

8. Special Rules for Written Contracts
There are special rules that apply to written contracts.
These are the parol evidence rule and the best evidence rule.

9. Parol Evidence Rule
When a written contract contains everything that was agreed upon, you ensure that neither party can go to court and claim a contract is incorrect or that it fails to show the parties’ real intentions.

10. Parol Evidence Rule
This long-established rule is called the parol evidence rule.
Parol means “word of mouth.”
Evidence is anything presented as proof at a court trial.

11. Parol Evidence Rule
This rule says that evidence of oral statements made before signing a written agreement cannot be presented in court to change or add to the terms of that written agreement.

12. Parol Evidence Rule
The court presumes that a written contract contains all of the terms and provisions intended by the parties.

13. What does parol mean?

14. ANSWER
Word of mouth

15. Exceptions to the Parol Evidence Rule
Parol evidence may be introduced to:
Explain some point that is not clear in a written agreement.

16. Exceptions to the Parol Evidence Rule
Show certain terms were agreed to but incorrectly typed.
Prove someone was persuaded by fraud.

17. The Best Evidence Rule
The courts usually require that the original copy of a written agreement be submitted into evidence rather than any sort of copy.
This requirement is generally referred to as the best evidence rule.

18. The Best Evidence Rule
This rule means a court would look with disfavor at photocopies or carbon copies of the written agreement, preferring instead to see the original agreement.

19. The Best Evidence Rule
When a contract is reduced to writing, each party receives an original version of the contract. Such original versions are generally referred to as
duplicate originals.

20. Pre-Learning Question
What do you do when you are asked to sign a legal document?

21. Changing the Writing
Signing a business or legal document starts a chain events that may be difficult to control.
Be very careful when signing any legal document and follow these guidelines.

22. Guidelines for Signing Documents
Read the entire text of the document before you sign it.
If you don’t understand something or don’t agree to it, cross it out before you sign. Have the other party initial it.

23. Guidelines for Signing Documents
Don’t be afraid to make changes on a printed form.
If any promises are made to you, write them in.

24. Guidelines for Signing Documents
Refuse to sign if you do not agree with everything contained in the writing.
Consider asking a lawyer to review the agreement if it contains complicated or ambiguous language.

25. Reviewing What You Learned What is the parol evidence rule?
Section Assessment
Reviewing What You Learned
What is the parol evidence rule?

26. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Evidence of oral statements made before the signing of the contract cannot be presented in court to change or add to the terms of the agreement.

27. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
What are the exceptions to the parol evidence rule?

28. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Parol evidence may be introduced to explain some point that is not clear, to show certain terms were typed incorrectly, or to prove fraud.

29. Reviewing What You Learned What is the best evidence rule?
Section Assessment
Reviewing What You Learned
What is the best evidence rule?

30. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
The courts usually require that the original copy of a written agreement be submitted into evidence rather than any sort of copy.

31. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
What rules govern the changes in a written contract?

32. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Rules include: read the entire text; if you don’t agree to or understand something, cross it out before you sign and have the other party initial it.

33. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Rules also include: don’t be afraid to make changes to the printed form; refuse to sign if you do not agree with everything contained in the writing; and consider getting a lawyer’s advice.

34. Critical Thinking Activity Parol Evidence
Section Assessment
Critical Thinking Activity
Parol Evidence
What is the legal philosophy behind the parol evidence rule?

35. Critical Thinking Activity Answer Parol Evidence
Section Assessment
Critical Thinking Activity Answer
Parol Evidence
The rule is intended to clarify and avoid disputes about the intent of the parties.

36. Legal Skills in Action Parol Evidence Rule
Section Assessment
Legal Skills in Action
Parol Evidence Rule
Your friend, Pete, is about to lease an apartment. Although he intends to stay in the apartment for an entire year, he thinks he might have to move to another state before that time.

37. Legal Skills in Action Parol Evidence Rule
Section Assessment
Legal Skills in Action
Parol Evidence Rule
Pete tells you the lease he is about to enter has an acceleration clause, which
says that if he breaks his lease, the rest of the rent is due at that precise moment.

38. Legal Skills in Action Parol Evidence Rule
Section Assessment
Legal Skills in Action
Parol Evidence Rule
The landlord has told Pete to ignore that particular clause. Write to your friend explaining how the parol evidence rule affects his lease.

39. Legal Skills in Action Answer
Section Assessment
Legal Skills in Action Answer
Parol Evidence Rule
If Pete’s lease was presented in court, the terms of the acceleration clause could be enforced because the landlord only agreed orally to ignore the clause before the lease was signed.

40. End of Section 10.2