Issue: Whether the Parol Evidence Rule Precludes Evidence of a ‘Handshake’ Agreement in Alabama.
Area of Law:
Business Organizations & Contracts, Litigation & Procedure
The parol evidence rule; Express written agreement; "Handshake" agreement
601 So. 2d 942
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. SeeLake 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. SeeAshby v. Employment Div., 534 P.2d 1160, 1162 (Or. Ct. App. 1975) (“succinctly, a contract is a binding obligation”).
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