Ep. 6: Parol Evidence Rule in US Contract Law: Interpretation and Application

Here we focus on the parol evidence rule and contractual interpretation within the framework of US law. The rule governs whether extrinsic evidence can be admitted to clarify or modify a written agreement. The text examines the common law approach, with its emphasis on plain meaning, and its more flexible counterpart, the Uniform Commercial Code (UCC), which allows for trade usage and course of dealing to be considered. It explores the arguments for and against admitting extrinsic evidence, highlighting the tension between preserving the autonomy of contracting parties and achieving fairness in specific cases. The text delves into various landmark legal cases, such as Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co. and Columbia Nitrogen Corp. v. Royster Co., to illustrate the different legal perspectives on these issues. Ultimately, the text offers a comprehensive analysis of the principles and complexities surrounding the interpretation of contracts under US law.

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