Riverisland Erodes Calif. 'Parol Evidence Rule'

Law360, New York (March 5, 2013, 7:55 PM EST) -- The "parol evidence rule" has long been a part of California's and other jurisdictions' laws. It provides that, when parties enter into an integrated written contract intended to be the complete, exclusive and final embodiment of the terms agreed to, outside evidence may not be used to contradict or alter those agreed-to terms.

However, a recent California Supreme Court decision significantly undercuts this rule by expanding parties' ability to use outside evidence to claim that their contracts should be voided because they were induced by fraud.

In California, the parol evidence rule is articulated in two statutes:

1. Code of Civil...

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