Which rule prevents consideration of prior or contemporaneous oral agreements that contradict a written contract?

• A. Parol evidence principle
• B. Parol contract rule
• C. Parol evidence rule
• D. Parol terms clause

Answer: (C)

The parol evidence rule states that evidence of prior or contemporaneous oral agreements cannot be used to contradict, modify, or vary the express terms of a written contract. This rule gives certainty to written contracts by treating the document as the final expression of the agreement, so later oral statements that conflict with the written terms generally cannot alter them.

It's important to note that extrinsic evidence isn’t completely barred. It can be used to interpret ambiguous terms, to show that the writing was not intended as a complete integration, or to prove defenses like fraud, misrepresentation, mistake, or duress. It can also establish a separate collateral agreement that stands apart from the written contract. Among the given terms, the standard and widely accepted label for this rule is the parol evidence rule.