Briefly Explain What Is Meant by the Parol Evidence Rule

question 55

Short Answer

Briefly explain what is meant by the parol evidence rule. Identify when a court might avoid applying the parol evidence rule.

---

Definitions:

Footnote Disclosure

Additional information provided at the bottom of financial statements, offering more detail on specific figures or accounting policies.

Statement of Retained Earnings

A financial statement that outlines the changes in a company's retained earnings over a specific period.

Expense Recognition

The accounting principle that expenses should be recognized in the period in which they contribute to revenue, following the matching principle.

Amortization

The gradual reduction of a debt over a period of time through regular payments of principal and interest.