The proof of a collateral contract not in contradiction to the written contract is an exception to the parol evidence rule.

Question

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This statement is correct. The parol evidence rule generally prohibits the introduction of extrinsic evidence to interpret or vary the terms of a written contract. However, an exception to this rule applies when the evidence is offered to prove the existence of a collateral contract that is not in contradiction to the written contract. In such cases, the evidence is admissible to establish the terms of the collateral contract, which is viewed as a separate and distinct agreement from the written contract.

The Proof of a Collateral Contract Not in Contradiction to the Written