In Which of the Following Situations Does the Parol Evidence

question 65

Multiple Choice

In which of the following situations does the parol evidence rule not apply?

• A) Where a typographical error occurs in the document and obviously does not represent the agreement of the parties.
• B) Where one of the parties to the contract lacks contractual capacity.
• C) The parol evidence rule applies in both of the above situations.
• D) The parol evidence rule does not apply in either (a) or (b).

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Definitions:

Limited Liability Company

A business organization strategy that harmonizes the limited liability advantage of a corporation with the taxation simplicity of a partnership or sole proprietorship.

Operations Participation

The involvement or engagement in the ongoing activities or processes of an organization, project, or system.

Articles of Organization

A document filed with a state governmental entity to legally establish a limited liability company (LLC).

Member-Managed

Describes a management structure in a limited liability company (LLC) where all members (owners) actively participate in the day-to-day operations and decision-making process.