MBE Rules · Contracts

Parol evidence rule

The rule

When parties have a fully integrated written agreement, prior or contemporaneous oral statements that contradict or vary the writing are inadmissible. A merger clause is strong (but not conclusive) evidence of full integration. Partial integrations may be supplemented by consistent additional terms.

In plain English

If you have a complete written contract, you can't use earlier spoken agreements to change it. Sometimes, you can add details that don't conflict with the written terms.

Worked example

The buyer and seller sign a contract for a car sale. The buyer can't later claim an oral promise for free servicing was part of the deal, as it wasn't in the written contract.

Memory hook

If it's in writing, no rewriting! Full integration means no oral changes—what's written rules.

The trap

Students think: any oral statement is inadmissible. Wrong, because consistent additional terms can supplement partial integrations. The actual test is whether the writing is fully integrated.

How examiners test it

The MBE loves: a contract with a merger clause + prior oral agreement. Trap: assuming merger clause is conclusive. Must determine if writing is fully integrated or partial.

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