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

Question

Quizplus · Accepted Answer

This statement is true. The parol evidence rule generally prohibits the introduction of oral or written statements that contradict or vary the terms of a written contract. However, the proof of a collateral contract that does not contradict the written contract is an exception to the parol evidence rule. A collateral contract is a separate agreement that exists alongside the written contract and is not intended to replace or modify it.

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