What does the Parol Evidence Rule prohibit?

The Parol Evidence Rule is a fundamental principle in contract law that prohibits the introduction of oral statements or agreements that contradict or modify the terms of a written contract that is intended to be a complete and final expression of the parties' agreement. When parties create a written contract, the assumption is that all prior negotiations and agreements have been merged into that document. Therefore, if one party attempts to introduce oral evidence to change the terms of the written contract, the Parol Evidence Rule comes into play, and such evidence is generally inadmissible in court.

This rule upholds the integrity of written agreements by ensuring that only the specific terms included in the document are recognized as binding. It reflects the legal principle that a comprehensive written contract serves as the final say in understanding the parties' intentions and obligations, making it critical for those engaged in drafting and managing contracts to be aware of the Parol Evidence Rule.

In contrast, the other options either reference concepts that do not align with the foundational principles of the Parol Evidence Rule or refer to types of agreements that do not fall under its jurisdiction. Thus, the focus here is on the specific restriction imposed by the Parol Evidence Rule regarding the alteration of written contracts through oral evidence.