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parol evidence

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parol evidence

A rule that parol (oral) evidence will not be admissible to vary the terms of a written contract. On the other hand, if some term of the written contract is ambiguous on its face, then parol evidence is admissible to explain that term. Under the Uniform Commercial Code, if the contract has to do with the sale of goods, more latitude is granted to explain or supplement the contract by parol evidence of typical business practices. Much less latitude is given with real estate contracts.



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This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement.
of Montana) offers explanations of both correct and incorrect answers in the "murky" areas of these laws, and covers such exam topics as the Uniform Commercial Code, the scope of Article 2, the Parol Evidence Rule, the Statute of Frauds and remedies for both buyers and sellers.
Some courts have butchered the analysis of fraud-in-the-inducement claims, saying they are barred by the parol evidence rule.
 
 
 
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