Which of the Following Is True of the Parol Evidence

question 65

Multiple Choice

Which of the following is true of the parol evidence rule?

• A) It discourages parties from signing a no-competition clause.
• B) It prevents a party from varying the terms of a written contract by claiming the existence of contradictory oral terms.
• C) It provides a set of exceptions to the statute of frauds.
• D) It prevents the unjust enrichment of a party who has refused to perform pursuant to clear contract terms.

---

Definitions:

Net Incomes

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenues.

Deferred Income Tax

Deferred Income Tax is a liability on a company's balance sheet that results from income already earned and recognized for accounting purposes but not yet subject to taxation.

Fair Value

The estimated market price of an asset or liability, reflecting what a willing buyer would pay to a willing seller in an arm's length transaction.