Question 1

Incorporation by reference is an integration made by express reference in one document that refers to and incorporates another document within it.

Accepted Answer

A) True 
 B)False  True

Question 2

Any oral or written words outside the four corners of a written contract are termed as ________.

Accepted Answer

A) parol evidence 
B) exclusive integration 
C) leading object exception 
D) main purpose exception 
A) parol evidence 
B) exclusive integration 
C) leading object exception 
D) main purpose exception A

Question 3

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

Accepted Answer

A) True 
 B)False  True

Question 4

In which of the following cases is parol evidence admitted by a court?

Accepted Answer

A) when the plaintiff reduces the value of damages he expects 
B) when the evidence explains ambiguous language 
C) when the defendant does not wish to appeal 
D) when the defendant takes the case to the appellate court 
A) when the plaintiff reduces the value of damages he expects 
B) when the evidence explains ambiguous language 
C) when the defendant does not wish to appeal 
D) when the defendant takes the case to the appellate court

Question 5

The primary contract in a guarantee situation is between the debtor and the creditor.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of the Statute of Frauds?

Accepted Answer

A) An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party. 
B) Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded. 
C) If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract. 
D) Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing. 
A) An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party. 
B) Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded. 
C) If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract. 
D) Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing.

Question 7

How are contract words and terms interpreted?

Accepted Answer

If the parties have not defined the word

Question 8

Parol evidence rule stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Accepted Answer

A) True 
 B)False

Question 9

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 10

In a guaranty situation, the original contract is between the ________.

Accepted Answer

A) creditor and the guarantor 
B) debtor and the creditor 
C) debtor and the guarantor 
D) creditor and the lessee 
A) creditor and the guarantor 
B) debtor and the creditor 
C) debtor and the guarantor 
D) creditor and the lessee

Question 11

A person's nickname or initials that indicate his or her intent are not considered binding signatures.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

Accepted Answer

A) lease 
B) mortgage 
C) life estate 
D) easement 
A) lease 
B) mortgage 
C) life estate 
D) easement

Question 13

Section 2A-201(1)of the Uniform Commercial Code states that lease contracts involving payments of $1, 000 or more must be in writing.

Accepted Answer

A) True 
 B)False

Question 14

Section 2-201(1)of the Uniform Commercial Code states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does the one-year rule state?

Accepted Answer

A) Every contract in writing is subject to yearly renewal. 
B) The terms of a written contract can be modified within a year of its formation. 
C) A contract that cannot be performed on its own terms within a year should be in writing. 
D) Valid contracts cannot be rescinded by either party until a year after their formation. 
A) Every contract in writing is subject to yearly renewal. 
B) The terms of a written contract can be modified within a year of its formation. 
C) A contract that cannot be performed on its own terms within a year should be in writing. 
D) Valid contracts cannot be rescinded by either party until a year after their formation.

Question 16

The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.

Accepted Answer

A) part performance 
B) undue performance 
C) equitable performance 
D) promissory estoppel 
A) part performance 
B) undue performance 
C) equitable performance 
D) promissory estoppel

Question 17

Which of the following is considered "real property?"

Accepted Answer

A) a fixture permanently affixed to a building 
B) fifty-one percent partnership in a firm 
C) a club membership 
D) diamond jewelry 
A) a fixture permanently affixed to a building 
B) fifty-one percent partnership in a firm 
C) a club membership 
D) diamond jewelry

Question 18

If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

Accepted Answer

A) True 
 B)False

Question 19

In a guaranty situation, there is only one contract among three parties.

Accepted Answer

A) True 
 B)False

Question 20

Section 2A-201(1)of the Uniform Commercial Code states which of the following?

Accepted Answer

A) All lease contracts must be in writing. 
B) Lease contracts involving payments of $1, 000 or more must be in writing. 
C) All sales contracts must be in writing. 
D) Sales contracts involving payments of $500 or more must be in writing. 
A) All lease contracts must be in writing. 
B) Lease contracts involving payments of $1, 000 or more must be in writing. 
C) All sales contracts must be in writing. 
D) Sales contracts involving payments of $500 or more must be in writing.

Exam 14: Statute of Frauds and Equitable Exceptions

Incorporation by reference is an integration made by express reference in one document that refers to and incorporates another document within it.

Any oral or written words outside the four corners of a written contract are termed as ________.

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

In which of the following cases is parol evidence admitted by a court?

The primary contract in a guarantee situation is between the debtor and the creditor.

Which of the following statements is true of the Statute of Frauds?

How are contract words and terms interpreted?

Parol evidence rule stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

In a guaranty situation, the original contract is between the ________.

A person's nickname or initials that indicate his or her intent are not considered binding signatures.

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

Section 2A-201(1)of the Uniform Commercial Code states that lease contracts involving payments of $1, 000 or more must be in writing.

Section 2-201(1)of the Uniform Commercial Code states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.

Which of the following does the one-year rule state?

The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.

Which of the following is considered "real property?"

If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

In a guaranty situation, there is only one contract among three parties.

Section 2A-201(1)of the Uniform Commercial Code states which of the following?

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