What does the parol evidence rule generally prohibit?

• A. Evidence that supports the contract terms but is not in writing.
• B. Extrinsic evidence of a prior or contemporaneous agreement that contradicts the terms of the contract as written.
• C. Extrinsic evidence of later amendments to the contract.
• D. Extrinsic evidence of performance or consideration.

Answer: (B)

The parol evidence rule treats the written contract as the final expression of the parties’ agreement and aims to prevent outside statements from changing what the writing says. Because of that, evidence of a prior or contemporaneous agreement that contradicts the terms of the written contract is generally not admissible to alter or vary those terms. In other words, you can’t rely on earlier promises or side understandings to override what the contract itself states. There are exceptions, such as when the contract isn’t fully integrated, terms are ambiguous, or you’re proving a separate collateral agreement that doesn’t contradict the writing, or proving fraud, mistake, or lack of consideration, or showing a later modification under proper circumstances.