The Parol Evidence Rule: Don’t Be Afraid of the Dark

Abstract:     
The Parol Evidence Rule, a staple of the first-year Contracts class, produces more anxiety than it should. This article proposes a new approach to the rule that should make it easier to comprehend. The method begins by narrowing the field by distinguishing issues that do not raise the parol evidence rule. It then proposes additional questions to ask when analyzing a true parol evidence rule issue, and discusses the policy issues behind these questions. Ultimately, the decision is seen to be a choice between enforcing the agreement the parties actually made, or sacrificing that agreement to efficiency. The conflicting policies are exemplified in the Montana Supreme Court case of Sherrod, Inc. v. Morrison-Knudsen Co., which embodies many of the conflicting views.

Number of Pages in PDF File: 52

Keywords: parol evidence, contracts, Montana law, Sherrod

Accepted Paper Series