What Is the Purpose of the Parol Evidence Rule? Should

question 11

Essay

What is the purpose of the parol evidence rule? Should parties to a contract always be able to tell their story and then leave it to the jury to determine who is telling the truth? Does the parol evidence rule deny a party's right to be heard in court? Why are oral statements made after the contract is formed not subject to the rule?

---

Definitions:

Accounts Payable

Liabilities or amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Accrued Liabilities

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, representing future cash outflows.

Decrease Cash

Decrease cash refers to a reduction in the amount of money and cash equivalents available in a company, which can result from paying expenses, purchasing assets, or distributing dividends.

Inventory Method

An accounting approach used to value and manage the inventory a business holds, affecting cost of goods sold and ending inventory.