Which of the Following Is True About the Exception to the Parol

question 8

Multiple Choice

Which of the following is true about the exception to the parol evidence rule?

• A) A party can always introduce proof of an oral agreement made before the writing was created.
• B) Oral testimony that attempts to show that the contract is illegal is not allowed.
• C) A party is allowed to use oral terms to alter, vary, or contradict the written terms of the contract.
• D) If the terms of the writing are unclear, oral testimony can be introduced to aid the court in interpreting the writing.

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Definitions:

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life.

Residual Value

The estimated salvage value of an asset at the end of its useful life.

Depreciable Cost

The original cost of an asset less its salvage value, representing the total amount that can be depreciated over its useful life.