Delaware Real Estate Practice Exam

The parol evidence rule is a fundamental principle in contract law that dictates that once parties have put their agreement into a written format, any prior oral or written statements that contradict the terms of that written agreement are typically inadmissible in court. This rule serves to uphold the integrity and stability of written contracts by preventing parties from introducing evidence of previous discussions, negotiations, or agreements that would alter the clear and explicit terms laid out in the written document.

The rationale behind the parol evidence rule is to ensure that the written contract is the definitive and final expression of the parties' intentions. It protects parties from potential disputes that can arise if prior statements or agreements are allowed to alter the agreed-upon terms in writing.

This principle is crucial in real estate transactions as it ensures that all parties abide by the clear stipulations set forth in their contract. Making decisions based on the written document reduces misunderstandings and promotes transparency.

The other options do not accurately capture the essence of the parol evidence rule, which revolves around the rejection of contradictory oral agreements rather than allowing them or addressing property valuation or tenant rights.