When does the parol evidence rule apply?

The parol evidence rule applies primarily when altering written agreements. This legal principle dictates that once parties have put their agreement into writing, any previous or contemporaneous oral or written statements that contradict or modify the written agreement are generally inadmissible in court. The essence of this rule is to uphold the integrity and finality of written contracts, ensuring that the terms of the written document are considered the complete and final expression of the parties' agreement.

In a scenario involving a dispute about a contract, if a party tries to introduce evidence of a verbal agreement or discussions that contradict the written terms, the parol evidence rule would typically prevent that evidence from being considered when interpreting the contract. This reinforces the idea that the written agreement is the definitive source of the parties' obligations and intentions.

In contrast, while verbal agreements might be discussed in various contexts or might indicate the parties' intentions, they do not fall under the purview of the parol evidence rule in the same way as attempts to modify the terms of an established written contract. The rule is focused specifically on maintaining the integrity of the written contract against modifications suggested by prior or simultaneous agreements outside of that document.