The parol evidence rule applies to integrated contracts. Which statement is true?

• A. It prohibits admission of extrinsic evidence to add or contradict terms.
• B. It allows extrinsic evidence to vary the terms.
• C. It applies only to contracts for real property.
• D. It prohibits any modification to the contract.

Answer: (A)

The main idea is that when a contract is fully integrated, the writing is treated as the complete and final expression of the agreement. The parol evidence rule then bars extrinsic evidence that would add to, modify, or contradict those written terms. So the statement that best captures this is that extrinsic evidence cannot be admitted to add to or contradict the terms of an integrated contract.

There are nuances, but the core concept is that the written terms stand apart from prior or contemporaneous statements that would alter them. The rule is not limited to real property contracts (it applies to many types of contracts), and it does not categorically ban every change—modifications can exist if there is a separate, actual agreement or if the contract isn’t fully integrated.