Understanding the Parol Evidence Rule in Indian Contract Law The Supreme Court judgment in Mangala Waman Karandikar vs. Prakash Damodar Ranade highlights the importance of the Parol Evidence Rule in contract interpretation. Here's what you need to know: 1. The rule limits courts to interpreting contracts within the "four corners" of the written document. 2. Sections 92 and 95 of the Indian Evidence Act, 1872 incorporate this principle. 3. Key takeaway: Extrinsic evidence contradicting clear contract terms is generally inadmissible. 4. The Court emphasized that ambiguity must be established before considering external evidence. Pro tip: Include an 'Entire Agreement' clause to reinforce the contract's finality and completeness. Clear, specific, and unambiguous language in contracts is crucial to avoid litigation. It must be ensured that the drafting reflects the true intentions of the parties.
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