What does the Parol Evidence rule prevent?

The Parol Evidence Rule is a legal principle that restricts the use of oral testimony or evidence to contradict, vary, or add to the terms of a written contract that has been finalized. The rationale behind the rule is to uphold the integrity and reliability of written agreements, ensuring that the written document is seen as the complete and definitive expression of the parties’ intentions.

In this context, the correct answer highlights that the Parol Evidence Rule specifically prevents oral testimony that contradicts what is stated in a written contract. This means that if there is a written contract, parties are limited in their ability to introduce prior or contemporaneous oral statements that would alter or dispute the clear terms of that document. This is essential to maintain the stability and enforceability of written contracts in business transactions.

The other options do not accurately capture the essence of the Parol Evidence Rule. For instance, it does not prevent oral evidence that enhances or explains a contract; such evidence can be admissible if it clarifies ambiguities without contradicting the written terms. Similarly, the rule does not prohibit amendments or modifications to an agreement as long as these changes are documented appropriately in writing if a written contract is in place. Thus, the emphasis is on preventing contradictions to ensure that the written