Contracts

Under Washington law, which of the following best describes the parol evidence rule as applied to real estate contracts?

AOral evidence is always admissible to explain a written contract
BPrior or contemporaneous oral agreements cannot generally be used to contradict or vary the terms of a fully integrated written contract✓ Correct
CAll prior negotiations must be included in the written contract
DThe parol evidence rule only applies to commercial real estate

Explanation

The parol evidence rule provides that when parties have a fully integrated written contract, prior or contemporaneous oral (parol) agreements cannot be admitted to contradict or vary its terms. However, oral evidence may be admitted to clarify ambiguities or prove fraud.

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