Answer to Question 1
The parol evidence rule states that a complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake exists. If a written contract appears to be complete, the parol evidence rule will not permit modification by oral testimony or other writing made before or at the time of executing the agreement. However, an exception is made when the contract refers to other writings and indicates they are considered as incorporated into the contract.
The parol evidence rule assumes that a written contract represents the complete agreement. If, however, the contract is not complete, the courts will admit parol evidence to clear up ambiguity or to show the existence of trade customs that are to be regarded as forming part of the contract. If the contract is ambiguous and there is no oral evidence that can clear up the ambiguity, the contract is construed against the party who wrote it.
Answer to Question 2
FALSE