Parol Evidence Rule
Definition - What does Parol Evidence Rule mean?
The parol evidence rule is a rule that states that once a contract has been signed, it is binding, and oral evidence against the contract is inadmissible. The only cases where the contract may be invalid is if a mistake had been made on it, or if fraud was used to create it or to get a party involved to sign it.
Justipedia explains Parol Evidence Rule
The purpose of the parol evidence rule is essentially to prevent people from getting out of their contractual obligations due to illegitimate reasons. For example, if a business owner signed a contract in which he promised to pay $300,000 for merchandise from another business, and then changed his mind after the contract was signed, the parol evidence rule would prevent him from getting out of the contract without a legitimate reason.
This rule helps to hold people accountable for their contractual obligations.