In large part, the terms of a written agreement between parties are the sole item considered when interpreting the items of an agreement upon a dispute between parties. The “parole evidence rule” is a common law principle which bars factors outside a written agreement to contradict the terms of a written contract except in cases of fraud, illegality, duress, or in some cases mistakes and ambiguity the written agreement. Oral promises made before or when a written agreement are entered that contradict a written agreement, cannot be considered when a dispute arises under common law principles.

However, a recent court decision has changed this basic rule when it reversed long-standing precedent by holding that evidence of broken oral promises that contradict the express terms of a written contract are no longer barred by the parole evidence rule.

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