Parties often spend time bargaining and negotiating, making offers and counter-offers, with both sides making concessions until a suitable compromise is reached. The bargaining may be carried on orally or in writing. In important contracts, the agreement is formalized into a written document signed by both parties. During the negotiation process emails, phone messages, draft documents, faxes and letters may be created and exchanged. These documents and recordings are collectively known asparol evidence,

	1.	all of the above.
	2.	can be used to settle disputes that arise over the meaning of words used in the formal signed agreement.
	3.	parol evidence contains valuable information about the parties' understanding of the meaning of the words used in the final document.
	4.	can also be used to address formation of the contract such as its legality, the capacity of the parties, mistakes, duress, undue influence or fraud.
	5.	The wordparol means extrinsic to or outside of the written agreement.