What does the term "parol evidence" refer to?

The term "parol evidence" refers specifically to spoken words or oral agreements that are not included in a written contract. In legal contexts, parol evidence can be introduced in court to clarify or interpret terms of a contract, especially when disputes arise about the understanding of the contract’s terms.

The principle behind parol evidence is that when parties enter into a written agreement, any prior or contemporaneous oral agreements that are not reflected in that writing generally cannot be used to contradict or modify the written terms. This is often called the "parol evidence rule."

Understanding this concept is crucial because it highlights the importance of thoroughly reviewing and finalizing written contracts, knowing that once an agreement is documented, the focus shifts to the written terms as the definitive version of the parties' agreement.