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Parol Evidence

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Also known as an integration clause or merger clause, an entire agreement clause declares that the contract represents the complete and final agreement, thereby protecting the contracting parties.
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Definitions for: parol evidence
parol evidence

oral evidence, rather than that contained in documents. The parol evidence rule states that when parties put their agreement in writing, all previous oral agreements merge into the written agreement. The written agreement cannot be contradicted by oral testimony, unless there was a mistake or fraud.

Example: Carter agrees to buy a house from Dooley, and both sign a written agreement. Carter later argues that Dooley said he'd pay all the loan discount points. Under the parol evidence rule, courts will interpret the contract as it is written.

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