What Is a Purpose of the Parol Evidence Rule

question 2

Multiple Choice

What is a purpose of the parol evidence rule?

• A)To restrict oral and written evidence from being admitted that supports an agreement in its written form.
• B)To restrict evidence from being admitted that substantially contradicts an agreement in its written form.
• C)To restrict oral evidence from being admitted that supports an agreement in its written form.
• D)To restrict hearsay from being admitted that supports or contradicts an agreement in its written form.
• E)To restrict written evidence from being admitted that supports an agreement in its written form.

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Definitions:

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses, which can be achieved through acquisitions, mergers, or consolidations.

Consolidate

In financial context, to combine assets, liabilities, and other financial items of two or more entities into one.

Consolidated Balance Sheet

A financial statement that aggregates all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Subsidiary

A company that is controlled by another company, referred to as the parent company.