What Does the Parol Evidence Rule Do

question 12

Multiple Choice

What does the parol evidence rule do?

• A) It sets the rules for the admissibility of evidence relating to releasing a criminal from a prison term.
• B) It determines which contracts are required to be in writing.
• C) It sets the general rules for the admissibility of evidence in criminal actions.
• D) It limits the ability of parties to written contracts from introducing certain evidence related to the contract.
• E) It determines the types of evidence that can be introduced in connection with oral contracts.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Sales

The total revenue a company generates from selling goods, services, or both, within a specific period.

Average Collection Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, leading to net profit or loss.