What principle does the Parole Evidence Rule uphold?

The correct answer is that the Parol Evidence Rule upholds the principle that only written agreements are considered final. This rule generally states that when parties have put their agreement into a final written form, any prior oral or written statements or agreements that contradict, modify, or supplement the written contract are not admissible in court to alter the terms of that contract.

The rationale behind this rule is to promote clarity and reliability in written contracts, ensuring that the final agreement reflects the understanding and intentions of the parties involved. Thus, if all essential terms are included in the written contract, any previous discussions or agreements that were not incorporated into that writing cannot be used to change or dispute the established terms. This serves to prevent potential misunderstandings and disputes about what the parties actually agreed to.

Understanding this principle helps in recognizing the importance of documenting agreements in writing rather than relying on oral agreements, which may be harder to prove or interpret. In real estate transactions, where significant sums of money and legal obligations are at stake, having a clear, final written contract is particularly crucial to safeguard the interests of all parties involved.