Section 10.2

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. Section 10.2Assessment Reviewing What You Learned • What is the parol evidence rule?

26. Section 10.2Assessment 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. Section 10.2Assessment Reviewing What You Learned • What are the exceptions to the parol evidence rule?

28. Section 10.2Assessment 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. Section 10.2Assessment Reviewing What You Learned • What is the best evidence rule?

30. Section 10.2Assessment 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. Section 10.2Assessment Reviewing What You Learned • What rules govern the changes in a written contract?

32. Section 10.2Assessment 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. Section 10.2Assessment 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. Section 10.2Assessment Critical Thinking Activity Parol Evidence What is the legal philosophy behind the parol evidence rule?

35. Section 10.2Assessment Critical Thinking Activity Answer Parol Evidence The rule is intended to clarify and avoid disputes about the intent of the parties.

36. Section 10.2Assessment 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. Section 10.2Assessment 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. Section 10.2Assessment 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. Section 10.2Assessment 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