What is extrinsic evidence in the context of a contract?

Extrinsic evidence refers to information not contained within the text of a contract itself, which is used to help clarify, explain, or interpret the agreement's terms and intentions. In legal contexts, this evidence can include previous negotiations, communications between parties, or other relevant documents that provide context about the contract's formation or the meaning of its provisions. Incorporating extrinsic evidence can be essential when a contract's language is ambiguous, incomplete, or in dispute, enabling courts and parties to ascertain the parties' actual intentions and understandings at the time of that contract's execution.

Therefore, understanding extrinsic evidence is crucial for legal interpretation in contract law, as it helps illuminate the parties' motivations and agreements, which may not be explicitly stated in the written contract. This function is not fulfilled by evidence contained within the contract, gossip, or legal testimony, making extrinsic evidence a unique and essential element in contract analysis.