The Parol Evidence Rule Does Not Apply To

question 50

Multiple Choice

The parol evidence rule does not apply to:

• A) a typographical error that obviously does not represent the agreement of the parties.
• B) evidence showing one of the parties to the contract lacks contractual capacity.
• C) The parol evidence rule does not apply to the evidence in either of these situations.
• D) The parol evidence rule applies to the evidence in both of these situations.

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Definitions:

Previous Business Success

The accomplishments and positive outcomes achieved by a business in its past operations, often used to gauge potential for future success.

Capital

Financial assets or resources that individuals or companies use to fund their operations and invest in their businesses.

Equity Financing

A method of raising capital through the sale of shares in a company, thereby giving investors ownership interests.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, resulting in greater sales or margins and/or retaining more customers.