ContractsIntermediateNorth Carolina Exam

NC's 'Parol Evidence Rule' prevents parties to a written real estate contract from:

AMaking verbal offers

BIntroducing evidence of prior oral or written agreements to contradict or vary the terms of the final written contractCorrect

CRecording the contract in public records

DModifying the contract with a written addendum, though specific requirements can vary depending on the transaction details

Why Introducing evidence of prior oral or written agreements to contradict or vary the terms of the final written contract Is Correct

Answer B: Introducing evidence of prior oral or written agreements to contradict or vary the terms of the final written contract

The Parol Evidence Rule prevents parties from introducing prior oral or written agreements to contradict the terms of a fully integrated (complete) written contract — the written agreement is presumed to be the final, complete agreement.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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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 Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

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