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:

Initial Public Offering (IPO)

The first sale of a company's stock to the public, transitioning the company from private to public to raise equity capital.

Rights Offering

A financial mechanism allowing current shareholders to purchase additional shares directly from the company at a specified price before the shares are offered to the public.

Underwriting Provision

A clause or condition included in financial agreements, often in insurance or security underwriting, detailing specific obligations or requirements.

Debt Offerings

The issuance of bonds or other borrowing instruments by entities to raise capital.