The parol evidence rule allows a party to avoid liability for statements made during the negotiations if those statements are not placed within the final written contract.

Question

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The parol evidence rule generally prohibits the introduction of extrinsic evidence (such as prior verbal or written negotiations) to modify, add to, or contradict the terms of a final written contract. Therefore, a party may not be held liable for statements made during negotiations that were not included in the final written contract due to the parol evidence rule.

The Parol Evidence Rule Allows a Party to Avoid Liability