Illinois Real Estate Practice Exam

The common law rule that states the contract is the sum of the agreement and there are no outside agreements is known as the:

1. Statute of Frauds

2. Integration Rule

3. Deed Restriction Doctrine

4. Parol Evidence Rule

The correct answer is: Parol Evidence Rule

The concept you are referring to is the Parol Evidence Rule. This rule, rooted in common law, states that once parties have entered into a written contract that is meant to be a complete and final representation of their agreement, any prior oral or written agreements that attempt to alter or add to the terms of that written contract are inadmissible in court. Essentially, the rule emphasizes that the written contract is the definitive source of the terms agreed upon, thereby protecting the integrity and reliability of written agreements. This is particularly important in real estate transactions, where the complexities involved can lead to misunderstandings or differing interpretations if outside agreements are considered. By establishing that only the contents of the contract itself can be taken into account, the Parol Evidence Rule helps to promote legal certainty and reduce disputes regarding the terms of the agreement. In this context, the other choices represent different legal principles that do not apply here. The Statute of Frauds pertains to the requirement that certain contracts be in writing to be enforceable, the Integration Rule deals with the finality and completeness of contracts, and the Deed Restriction Doctrine relates to limitations placed on property use by the current or prior property owners. All of these focus on different facets of contract law rather than the