parol evidence

Definition

Parol evidence refers to any verbal agreements, negotiations, or outside documents that happened before or during the signing of a written contract. Courts generally refuse to consider this kind of outside evidence when there is a dispute about what a contract means, because the law assumes that when two parties sign a written agreement, that document captures everything they agreed to. This rule exists to prevent someone from claiming 'but we also agreed to this other thing' after the fact.

Example

You sign a lease for a commercial space, but before signing the landlord verbally promised to include free parking. If that promise is not written into the lease, a court will most likely ignore it and enforce only what the written document says.

Watch Out

Get every promise, condition, and agreement in writing before you sign anything, because a handshake deal or verbal side agreement will likely be worthless if a dispute ends up in court.

See which terms appear in your contract?

This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.