Question 1

An agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

Accepted Answer

A) True 
 B)False  False

Question 2

The parol evidence rule applies only to integrated contracts,meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following would NOT require a writing under the statute of frauds?

Accepted Answer

A)  The buyer of a five-acre lot pays the $40,000 purchase price,thus fully performing his obligation 
B)  A renter agrees to rent a building for a 5-year period 
C)  A contractor enters into an agreement for an easement across adjoining land to run cables 
D)  A landscaper agrees to landscape the lot surrounding an office building 
A)  The buyer of a five-acre lot pays the $40,000 purchase price,thus fully performing his obligation 
B)  A renter agrees to rent a building for a 5-year period 
C)  A contractor enters into an agreement for an easement across adjoining land to run cables 
D)  A landscaper agrees to landscape the lot surrounding an office building D

Question 4

The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

Accepted Answer

A) True 
 B)False

Question 5

E-Sign regulations state that consumers must:

Accepted Answer

A)  evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required. 
B)  receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records. 
C)  receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form. 
D)  All of these. 
A)  evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required. 
B)  receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records. 
C)  receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form. 
D)  All of these.

Question 6

To satisfy the statute of frauds,the person who wants to bring the lawsuit must sign a memorandum.

Accepted Answer

A) True 
 B)False

Question 7

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Accepted Answer

A) True 
 B)False

Question 8

Jim promises to marry Cynda if she will buy him a new Ferrari for his birthday.This promise must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

The computation of time for the one-year provision of the statute of frauds starts when the agreement is made,not when the performance is to begin.

Accepted Answer

A) True 
 B)False

Question 10

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.Parol evidence:

Accepted Answer

A)  cannot be used to explain the term,because the plain meaning of a "year" is 12 months. 
B)  cannot be used to explain the term,because it is an integrated document. 
C)  can be used to clarify the parties' intent because in this contract the term "year" is ambiguous. 
D)  cannot be used,because the contract contains an express term that could have been changed by the parties prior to the contract's execution. 
A)  cannot be used to explain the term,because the plain meaning of a "year" is 12 months. 
B)  cannot be used to explain the term,because it is an integrated document. 
C)  can be used to clarify the parties' intent because in this contract the term "year" is ambiguous. 
D)  cannot be used,because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

Question 11

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud,duress,or undue influence.

Accepted Answer

A) True 
 B)False

Question 12

Under the parol evidence rule,which of the following types of evidence may be used to vary or contradict the written agreement?

Accepted Answer

A)  Prior oral or written agreements 
B)  Contemporaneous oral or written agreements 
C)  Subsequent oral or written agreements modifying the original agreement 
D)  None of these. 
A)  Prior oral or written agreements 
B)  Contemporaneous oral or written agreements 
C)  Subsequent oral or written agreements modifying the original agreement 
D)  None of these.

Question 13

Most courts consider a merger clause to be conclusive proof of an integrated contract.

Accepted Answer

A) True 
 B)False

Question 14

Requirements for a memorandum that satisfies the statute of frauds include that the writing:

Accepted Answer

A)  must be a single document. 
B)  must exist at the time of the litigation. 
C)  needs to be notarized. 
D)  None of these. 
A)  must be a single document. 
B)  must exist at the time of the litigation. 
C)  needs to be notarized. 
D)  None of these.

Question 15

A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

Accepted Answer

A) True 
 B)False

Question 16

Sam,the owner of a toy store,dies unexpectedly at the age of 56.His lifelong business associate,Paul,is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art,"If there isn't enough money in the estate,I'll personally see that the bill is paid." Which of the following is correct?

Accepted Answer

A)  The oral statement is enforceable because Paul is the administrator. 
B)  An oral statement such as this is not enforceable because it is outside the statute of frauds. 
C)  An oral statement such as this is not enforceable because this promise is within the statute of frauds. 
D)  The oral statement is enforceable because it is a collateral promise. 
A)  The oral statement is enforceable because Paul is the administrator. 
B)  An oral statement such as this is not enforceable because it is outside the statute of frauds. 
C)  An oral statement such as this is not enforceable because this promise is within the statute of frauds. 
D)  The oral statement is enforceable because it is a collateral promise.

Question 17

The word "parol" literally means release.

Accepted Answer

A) True 
 B)False

Question 18

Brightstone Co.and Allsale Co.enter an oral contract providing Allsale will provide 100 dozen 3" toy racecars at $50 per dozen to Brightstone.Brightstone faxes a letter to Allsale acknowledging the agreement,but stating only the quantity,not the price.Allsale:

Accepted Answer

A)  cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it. 
B)  cannot raise the defense of the statute of frauds since it is a merchant. 
C)  can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more. 
D)  can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement. 
A)  cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it. 
B)  cannot raise the defense of the statute of frauds since it is a merchant. 
C)  can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more. 
D)  can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement.

Question 19

The executor-administrator provision applies to promises of an executor of a decedent's will to the decedent's creditors.

Accepted Answer

A) True 
 B)False

Question 20

The suretyship provision has been interpreted to include promises made to a debtor.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

An agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

The parol evidence rule applies only to integrated contracts,meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Which of the following would NOT require a writing under the statute of frauds?

The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

E-Sign regulations state that consumers must:

To satisfy the statute of frauds,the person who wants to bring the lawsuit must sign a memorandum.

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Jim promises to marry Cynda if she will buy him a new Ferrari for his birthday.This promise must be in writing to be enforceable.

The computation of time for the one-year provision of the statute of frauds starts when the agreement is made,not when the performance is to begin.

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.Parol evidence:

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud,duress,or undue influence.

Under the parol evidence rule,which of the following types of evidence may be used to vary or contradict the written agreement?

Most courts consider a merger clause to be conclusive proof of an integrated contract.

Requirements for a memorandum that satisfies the statute of frauds include that the writing:

A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

The word "parol" literally means release.

Brightstone Co.and Allsale Co.enter an oral contract providing Allsale will provide 100 dozen 3" toy racecars at $50 per dozen to Brightstone.Brightstone faxes a letter to Allsale acknowledging the agreement,but stating only the quantity,not the price.Allsale:

The executor-administrator provision applies to promises of an executor of a decedent's will to the decedent's creditors.

The suretyship provision has been interpreted to include promises made to a debtor.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management