An Exception to the Parol Evidence Rule May Arise If

question 42

Multiple Choice

An exception to the parol evidence rule may arise if

• A)both parties want to rescind the contract.
• B)the plaintiff will not be able to successfully claim damages otherwise.
• C)the judge is convinced that the contract would be more effective if it contained additional terms.
• D)Evidence of matter extrinsic to the written document required in order to rectify a mistake made in the written document
• E)the wording of the document is unfair to one of the parties.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Adjusting Entries

Accounting records made during the closing of a financial period to properly distribute expenses and revenues to the time they were truly incurred.

Costs Recorded

Expenses documented in the financial records of a business, reflecting the economic use of resources.

Carrying Amount

Refers to the value of an asset or liability as reported on the balance sheet, considering factors like depreciation or amortization.