Question 1

Parol evidence may be admitted in court if it fills in the gaps in a contract.

Accepted Answer

A) True 
 B)False

Question 2

Although the common law of contracts permits several writings to be integrated to form a single written contract,the Uniform Commercial Code (UCC)does not.

Accepted Answer

A) True 
 B)False

Question 3

In a contract situation involving fraud,the innocent party can either rescind the contract and obtain restitution,or enforce the contract and sue for contract damages.

Accepted Answer

A) True 
 B)False

Question 4

Mark was shopping for a used car in February.He went to Auto Mega World and test drove a used 2001 Tiger XL.While driving the car,he looked at the climate control center and noticed that the temperature lever was marked "cold" at one end in blue and "hot" in red at the other end.Mark assumed that the "cold" marking meant that the car had air conditioning.Mark wanted to finally have an air-conditioned car.He did not discuss air conditioning in any way with the salesperson.Mark bought the car.When Mark was showing off his new car to friends,one of them pointed out to him that the car was not air-conditioned.In this circumstance:

Accepted Answer

A)  Mark can avoid the contract on the basis of mutual mistake. 
B)  Mark can avoid the contract on the basis of unilateral mistake. 
C)  Mark can avoid the contract on the basis of fraud in the inducement. 
D)  Mark cannot avoid the contract on the basis of his unilateral mistake. 
E)  Mark cannot avoid the contract because this is a mistake of value. 
A)  Mark can avoid the contract on the basis of mutual mistake. 
B)  Mark can avoid the contract on the basis of unilateral mistake. 
C)  Mark can avoid the contract on the basis of fraud in the inducement. 
D)  Mark cannot avoid the contract on the basis of his unilateral mistake. 
E)  Mark cannot avoid the contract because this is a mistake of value.

Question 5

Fraud in the inception exists when a party is deceived as to the nature of a document being signed.

Accepted Answer

A) True 
 B)False

Question 6

The term "sceinter" means:

Accepted Answer

A)  good faith 
B)  empty head and innocent heart 
C)  troubled mind 
D)  guilty mind 
E)  troubled conscience 
A)  good faith 
B)  empty head and innocent heart 
C)  troubled mind 
D)  guilty mind 
E)  troubled conscience

Question 7

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,with payment to be made within 10 days and the deed delivered within another 30 days.Buyer sends Seller a letter in which all these terms are included,along with a check for $100,000 that the seller deposits.The seller fails to deliver a deed and the buyer seeks to enforce the contract.Here,this contract is:

Accepted Answer

A)  enforceable, because Buyer had partly performed the contract by making payment. 
B)  unenforceable, because there is no writing signed by Seller. 
C)  enforceable, because Buyer sent a memorandum sufficient against himself, which binds Seller unless Seller objects, which he did not. 
D)  unenforceable, because the failure to deliver the deed is fraud. 
E)  unenforceable because land is not within the statute of frauds unless a house is built on it. 
A)  enforceable, because Buyer had partly performed the contract by making payment. 
B)  unenforceable, because there is no writing signed by Seller. 
C)  enforceable, because Buyer sent a memorandum sufficient against himself, which binds Seller unless Seller objects, which he did not. 
D)  unenforceable, because the failure to deliver the deed is fraud. 
E)  unenforceable because land is not within the statute of frauds unless a house is built on it.

Question 8

An ambiguity in a contract cannot constitute a mutual mistake of a material fact.

Accepted Answer

A) True 
 B)False

Question 9

Integration may be by an express reference in one document that refers to and incorporates another document within it.This procedure is called ratification by reference.

Accepted Answer

A) True 
 B)False

Question 10

The parol evidence rule states that if a written contract is a complete and final statement of the parties' agreement,any prior or contemporaneous oral or written statements that alter,contradict,or are in addition to the terms of the written contract are inadmissible in any court proceeding concerning the contract.

Accepted Answer

A) True 
 B)False

Question 11

The Aristocrats,a rock band contracted in writing with Johnson to perform for two months at a night club.Before the contract was signed,the leader of the band orally promised Johnson that she could terminate upon two weeks' notice if the band did not draw well.The promise was not in the written contract.The Aristocrats failed to draw well.Johnson gave two weeks termination notice and then fired the band.The band sued for the remaining time due under the written contract.Was evidence of the two week termination agreement admissible?

Accepted Answer

No.Once a written contract is formed,the

Question 12

A collateral promise occurs when the person making the promise agrees to be liable for the debt of another person.

Accepted Answer

A) True 
 B)False

Question 13

A fraudulent misrepresentation made in order to receive a policy of life insurance may result in the company not having to pay on the policy.

Accepted Answer

A) True 
 B)False

Question 14

A professor tells a student that if she writes a 5,000-word paper on the evils of plagiarism by May 13th,he will pay the student $750.00.Assuming that the student writes the paper,which of the following is the most accurate statement concerning the professor's obligation to pay the student?

Accepted Answer

A)  If the student gives the paper to the professor on May 13th, the money is not owed unless the student can conclusively prove that the professor was serious and not joking. 
B)  The offer was void because it violates the parol evidence rule. 
C)  This contract is only enforceable if it is in writing. 
D)  This contract is only enforceable if the student verbally or in writing accepts the offer prior to beginning the paper. 
E)  The student can successfully enforce the contract under the theory of promissory estoppel. 
A)  If the student gives the paper to the professor on May 13th, the money is not owed unless the student can conclusively prove that the professor was serious and not joking. 
B)  The offer was void because it violates the parol evidence rule. 
C)  This contract is only enforceable if it is in writing. 
D)  This contract is only enforceable if the student verbally or in writing accepts the offer prior to beginning the paper. 
E)  The student can successfully enforce the contract under the theory of promissory estoppel.

Question 15

A mistake will never affect whether assent to a contract is genuine.

Accepted Answer

A) True 
 B)False

Question 16

The "part performance" exception to the Statute of Frauds allows a court to partially enforce any oral contract that is required to be in writing under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 17

A(n)________ contract occurs when one person agrees to answer for the debts or duties of another person.

Accepted Answer

A)  indemnity 
B)  assurance 
C)  guaranty 
D)  due diligence 
E)  insurance 
A)  indemnity 
B)  assurance 
C)  guaranty 
D)  due diligence 
E)  insurance

Question 18

Undue influence is characterized by one party being put at a disadvantage in a contract due to:

Accepted Answer

A)  a party taking advantage of superior knowledge about the subject matter in a contract. 
B)  a party taking advantage of economic advantage in a transaction. 
C)  a party taking advantage of it being less urgent for that party to reach an agreement. 
D)  a party taking advantage of a fiduciary relationship. 
E)  a party taking advantage of the other party's legal circumstances. 
A)  a party taking advantage of superior knowledge about the subject matter in a contract. 
B)  a party taking advantage of economic advantage in a transaction. 
C)  a party taking advantage of it being less urgent for that party to reach an agreement. 
D)  a party taking advantage of a fiduciary relationship. 
E)  a party taking advantage of the other party's legal circumstances.

Question 19

In November 2010,Susan orally hires John to walk her dog twice daily for $20 per day from January 1,2011 through December 31,2011.In December 2010 Susan decides that the dog is not worth all that money and tells John to forget it.John sues.What would be the result under the Statute of Frauds?

Accepted Answer

A)  John loses, because the contract could not be performed by its own terms within one year of its formation and therefore had to be in writing. 
B)  John loses, because no judge is going to enforce a contract involving a dog. 
C)  John wins, because the contract could have been performed within a year from when he was supposed to start work and was, therefore, not within the Statute of Frauds. 
D)  John wins, because contracts for personal services are not within the Statute of Frauds. 
E)  John loses, because an insufficient amount of money per month is at issue. 
A)  John loses, because the contract could not be performed by its own terms within one year of its formation and therefore had to be in writing. 
B)  John loses, because no judge is going to enforce a contract involving a dog. 
C)  John wins, because the contract could have been performed within a year from when he was supposed to start work and was, therefore, not within the Statute of Frauds. 
D)  John wins, because contracts for personal services are not within the Statute of Frauds. 
E)  John loses, because an insufficient amount of money per month is at issue.

Question 20

The doctrine of promissory estoppel is not an equitable exception to the strict application of the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Exam 12: Genuineness of Assent and Statute of Frauds

Parol evidence may be admitted in court if it fills in the gaps in a contract.

Although the common law of contracts permits several writings to be integrated to form a single written contract,the Uniform Commercial Code (UCC)does not.

In a contract situation involving fraud,the innocent party can either rescind the contract and obtain restitution,or enforce the contract and sue for contract damages.

Fraud in the inception exists when a party is deceived as to the nature of a document being signed.

The term "sceinter" means:

An ambiguity in a contract cannot constitute a mutual mistake of a material fact.

Integration may be by an express reference in one document that refers to and incorporates another document within it.This procedure is called ratification by reference.

A collateral promise occurs when the person making the promise agrees to be liable for the debt of another person.

A fraudulent misrepresentation made in order to receive a policy of life insurance may result in the company not having to pay on the policy.

A professor tells a student that if she writes a 5,000-word paper on the evils of plagiarism by May 13th,he will pay the student $750.00.Assuming that the student writes the paper,which of the following is the most accurate statement concerning the professor's obligation to pay the student?

A mistake will never affect whether assent to a contract is genuine.

The "part performance" exception to the Statute of Frauds allows a court to partially enforce any oral contract that is required to be in writing under the Statute of Frauds.

A(n)________ contract occurs when one person agrees to answer for the debts or duties of another person.

Undue influence is characterized by one party being put at a disadvantage in a contract due to:

In November 2010,Susan orally hires John to walk her dog twice daily for $20 per day from January 1,2011 through December 31,2011.In December 2010 Susan decides that the dog is not worth all that money and tells John to forget it.John sues.What would be the result under the Statute of Frauds?

The doctrine of promissory estoppel is not an equitable exception to the strict application of the Statute of Frauds.

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A professor tells a student that if she writes a 5,000-word paper on the evils of plagiarism by May 13^th,he will pay the student $750.00.Assuming that the student writes the paper,which of the following is the most accurate statement concerning the professor's obligation to pay the student?