Which One of the Following Will Be Excluded by the Parol

question 172

Multiple Choice

Which one of the following will be excluded by the parol evidence rule?

• A) Express terms
• B) Extrinsic evidence
• C) Evidence of implied terms
• D) A condition precedent
• E) Evidence of a collateral agreement

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Definitions:

Market Rate of Interest

The prevailing rate at which interest is paid by borrowers for loans or earned by investors in the financial markets.

Face Value

The nominal or original value stated on a security or financial instrument, such as a bond or stock, at the time of its issue.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the interest expense over its life, reflecting the actual market rate.