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State And Describe The Parol Evidence Rule: How Does It Work?

Referencing Styles : APA | Pages : 1

Parole Evidence Rule

Parole evidence rule is a rule that preserves the genuinity or integrity of a written document. This was first established during the case of Gross v Lord Nugent (1833) and it was stated by Innes J in the case of Mercantile Bank of Sydney v Taylor (1891). This rule actually prohibits the parties from violating the terms and conditions and meanings of written document through the use of previous oral declarations that are not stated in the previous documents. When parties has discussed and negotiated among each other regarding a particular contract, both the parties does not have the right to change the contract or the meaning of the contract. Even in 1948, the case of Hutton v Watling the vendor signed up a written agreement. However, while taking actions against one of the clauses, the vendor claimed that he did not represented whole contract and it is not responsibility of vendors to provide all the evidences.

The existence of parole evidence, helps in safeguarding terms of contract. The originality of any written document is mainly protected by this law from any kind of manipulation by any parties that has been involved in the breach of war. The contract generally excludes extrinsic terms that has been actually overwritten by both the parties and the document was agreed to be a complete record of entire contract. While making any kind of decisions, the court considers following factors. The first factor that has been the written agreements need to be complete statement of parties’ agreement and whether the parole rule is contracting the evidence with the written contracts.

Collateral agreement might naturally made as separate agreement and sometimes the agreement can mislead to the jury. In the case of Henderson v Arthur (1907), the plaintiff is the seller and the defendant and the tenant were the party that was given the lease. Part of the written agreement showed the fact that payment is to be made in a certain time. On the other hand, both the parties has agreed to the point that part of rent can be paid in debts and this agreement was made orally. Later on the plaintiff sued the tenant due to non-timely payment of the rent.

While making decision the court considered the written part and the written part actually contradicted the oral contract. Courts has to step up for the development of this parole rule that has included some of the restrictions and have developed 7 specific restrictions. The most significant exceptions are rectifications, partly oral and partly written contracts and collateral contracts. In order to make an exceptions to the parole rule and accept the rectifications, it is important to consider three main clauses. Firstly both the parties have to come up with written agreements. Secondly the document must contain error that can be rectified. Thirdly no parties must have acquired an interest in the subject matter of the contract.

The case of Webster v Cecil (1861) is a perfect example of rectification that has been made in the contract. Whereby Webster was trying to argue that this purchase of land was £1,250 in the written document. Cecil then was able to prove that he had already declined an offer of £2,000, the accurate price was £2,250. The price was amended for that reason.

Its work

The working of this parole rule is to overrule any kind of discrepancies, or any breach of contract that has happen between any two parties. Now in order to utilise the rule of parole, it is important to take any kind of breach of contract. In order to utilise the policies of laws and regulations, it is highly important for the government and the law makers to bring in high class of resource so that the any parties will not be able to change the contracts or the clauses of contract. In order to active the parole rule, the law makers will have to rethink their policies that will definitely bat every time for written agreements. Now most of the policymakers will have to indulge only written contracts. Through the incorporation of written contracts, the collateral miscommunication among both parties. A good example of a case with this exception is the case of Van den Esschert v Chappel. The purchaser which was the plaintiff was about to sign a contract to buy a house. Just before signing the contract, the seller guaranteed orally that the house weren’t affected by white ants. The assurance of the seller resulted the buyer to sign the contract and buy the house. Several months later, the buyer of the house discovered that they were white ants and had to pay a sum of money to have them destroyed and for the damaged timbers. The plaintiff sued the seller for the costs of damage and repair. The plaintiff won even though the term that there were no white ants weren’t in the written agreement. As Wolf CJ said when purchasing a house in that country, information regarding the presence of white ants was an important matter.

From the various case it is quite clear that most of the parties that has been indulged in the breach of contract is unaware of the fact that most of the agreements that has been made is either partial or orally written. Through the congruence of resources it is important to bring in high rate of coagulation so that they are not being breached by lots of miscommunication and misunderstanding of the parties involved in the agreements. In order to full utilise the fact that most of the parties will have to indulge in written agreement that will definitely aim to maximise the resources. The third exception to the parol evidence rule would be terms implied through trade usage or custom. Whereby, it states that the parol evidence rule cannot be used to exclude extrinsic evidence of trade usage or custom.

If there is, the matter would be dealt with in detail under implied terms. In the case of Hutton v Warren (1836), the defendant was given notice to withdraw from his leased farm, he then claimed that there was a local custom that he will be entitled to receive a refund or payment from the landlord for both the labour and seed he had used on the farm for the past years. He claimed that this right is enforceable even though it wasn’t written in the lease. The tenant’s action succeeded. His contract with the landlord had to be viewed in the light of the established custom and it is decided that he had the right to recover fair compensation.



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