What does Parol Evidence mean? Read on to discover the definition & meaning of the term Parol Evidence - to help you better understand the language used in insurance policies.
Facts outside a contractual agreement that may be used to interpret the agreement. Contract law prescribes a complicated set of tests termed the parol evidence rule by which the admissibility of parol evidence in discerning the contracting parties' intent may be decided. The admissibility of parol evidence is extremely limited in cases of an integrated agreement a contract whose provisions make it clear that it contains within itself all the terms of the agreement between the parties. The "entire contract" clause found in many insurance policies is intended to make those policies integrated agreements and prevent the use of parol evidence in interpreting them.
We hope the you have a better understanding of the meaning of Parol Evidence.