The Legal and Regulatory Environment of Business ebook link: login The Parole Evidence Rule

Choose one question from Chapter 9’s Review Questions and Problems and answer(select one question from all) , and then answer Chapter 9’s Business discussion. Book resource name:The Legal and Regulatory Environment of Business ebook link: login

The Parole Evidence Rule

  1. 2. The Parol Evidence Rule 

Caryn negotiates to buy 50 washers and 50 dryers from the We-Clean-It Company. These machines are going into laundromats that Caryn operates within her family. Because these machines will be heavily used Karen got the company to agree to a one-year warranty instead of the standard 90-day warranty. Knowing the negotiation Caryn signs a written contract. Only later, Caryn realizes there is no warranty provision in the written contract. 

What should Caryn do to be able to enforce the original extended warranty agreement?

By signing the contract without ensuring it represents the agreed terms, Caryn invokes the parole evidence rule which limits her capacity to contend the final contract. This rule states that “Parties to a complete and final written contract cannot introduce oral evidence in a court of law with the aim of changing the written rules’’ (Shedd et al., 2012, p. 261). 

The rule is only applied to oral agreements made before and not after signing the contract. Certain situations allow for an exception to the parole evidence rule, namely:……………

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