The parol evidence rule

Overview

Parol evidence rule and entire agreement clause.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   State the parol evidence rule.

   Model answer

   The parol evidence rule prevents outside evidence being used to add to or vary a written contract. The document is treated as the complete record of the agreement.

2. 2

   Why does the parol evidence rule exist?

   Model answer

   The rule promotes certainty by making the written document the final word. Parties and courts can then rely on what appears on the page.

3. 3

   When does the parol evidence rule not apply at all?

   Model answer

   The rule applies only where the document was intended to contain the whole agreement. Evidence is admissible to show the writing was never meant to be exhaustive.

4. 4

   How did City and Westminster Properties v Mudd [1959] avoid the parol evidence rule?

   Model answer

   City and Westminster Properties v Mudd [1959] found a collateral contract based on an oral assurance about sleeping in the shop. The tenant could rely on the assurance despite the written lease.

5. 5

   Can evidence be given that the contract was subject to a condition?

   Model answer

   Pym v Campbell (1856) admitted evidence that the agreement was to take effect only if a third party approved the invention. Evidence of a suspensive condition falls outside the rule.

6. 6

   Can evidence of custom be used alongside a written contract?

   Model answer

   Evidence of trade custom may be admitted to explain the meaning of the written words. Custom cannot contradict what the document expressly says.

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