Legal Memorandum: The Parol Evidence Rule in AL

Issue: Whether the Parol Evidence Rule Precludes Evidence of a ‘Handshake’ Agreement in Alabama.

In brief, the parol evidence rule provides generally that evidence of a prior or contemporaneous oral agreement may not be offered to vary or contradict the terms of an express written agreement.  See Lake Martin/Alabama Power Licensee Ass’n v. Alabama Power Co., 601 So. 2d 942, 945 (Ala. 1992).  The rule is only applicable when there is an express written agreement to vary or contradict.  See Ashby v. Employment Div., 534 P.2d 1160, 1162 (Or. Ct. App. 1975) (“succinctly, a contract is a binding obligation”).

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