For the parol evidence rule to apply, there must be a(n) __________________ agreement and a(n) ________________ written or oral statement about the agreement.

• A. Written, subsequent
• B. Written, earlier
• C. Oral or written, subsequent
• D. Oral or written, earlier

Answer: (B)

The parol evidence rule applies when a written contract is intended as the complete expression of the parties’ deal, and there are statements about the agreement that were made before or at the time of signing. When the contract is in writing, any prior written or oral statements about its terms that are not included in the writing can’t be used to contradict or modify those terms. That’s why the best fit is a written agreement paired with an earlier written or oral statement.

If the statement is made after the writing, it’s generally treated as a modification or a separate agreement, not something the parol evidence rule bars in the same way. And if the contract could be oral, the rule doesn’t apply as stated here, since the scenario requires a written agreement to begin with.