Contracts
The 'parol evidence rule' in Michigan means that:
AVerbal agreements always override written contracts
BPrior verbal or written agreements are generally not admissible to contradict the terms of a final written contract✓ Correct
COnly oral contracts are enforceable in real estate
DContracts must be written in English to be enforceable
Explanation
The parol evidence rule provides that once a written contract is the final expression of the parties' agreement, prior or contemporaneous oral or written agreements that contradict its terms are generally inadmissible as evidence to vary those terms.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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