What is a key limitation of the parol evidence rule?

The parol evidence rule is a legal doctrine that governs the admissibility of extrinsic evidence in relation to written contracts. It primarily aims to uphold the integrity of written agreements by preventing parties from introducing prior or contemporaneous oral agreements that would contradict or modify the written terms of the contract.

The key limitation of the parol evidence rule pertains to its restriction on testimony and other forms of evidence that attempt to redefine or alter the clearly stated terms of a contract. This means that if a term is explicitly defined in a written contract, evidence of an earlier negotiation that attempts to provide a different meaning for that term cannot be admitted. This limitation is crucial because it ensures that the written contract reflects the definitive terms agreed upon by the parties, thereby reducing ambiguity and legal disputes arising from conflicting interpretations of the agreement.

In contrast, the choices that suggest complete disallowance of earlier negotiations or uphold the rule in every situation do not accurately reflect the nuance of the parol evidence rule. The rule does allow for certain exceptions, such as when evidence is presented to clarify ambiguous terms or to demonstrate fraud, mistake, or other equitable considerations. Understanding the limitation of the parol evidence rule helps in appreciating how it operates within contract law to ensure that written contracts are seen as the