The Parol Evidence Rule

question 8

Multiple Choice

The parol evidence rule

• A) widens the scope to admit into evidence facts proving other agreed terms of a contract.
• B) applies to both written and verbal contracts.
• C) is circumvented by the existence of a condition precedent.
• D) is irrelevant where a written contract cannot be performed within one year.
• E) supplies terms to a contract that are otherwise only implied, and by operation of the rule, need not be proven in evidence.

---

Definitions:

Preferred Stock

A type of stock that gives holders preferential treatment over common stockholders, usually through dividends and upon liquidation.

Common Stock

Equity ownership in a corporation, with voting rights and potential for dividends.

Dividend

A distribution of profits by a company to its shareholders, typically in the form of a payment.

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid as scheduled, needing to be fulfilled before common stock dividends.