Question 1

In most states, contracts for the sale of goods for $900 do not require to be in writing.

Accepted Answer

A) True 
 B)False

Question 2

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 3

Explain the doctrine of equitable estoppel.

Accepted Answer

The doctrine of promissory estoppel, or

Question 4

Which of the following phrases explains the term lease?

Accepted Answer

A) an interest in real property given to a lender as security for the repayment of a loan 
B) an interest in real property for a person's lifetime 
C) the transfer of the right to use real property for a specified period of time 
D) a right to use someone else's land without owning or hiring it 
A) an interest in real property given to a lender as security for the repayment of a loan 
B) an interest in real property for a person's lifetime 
C) the transfer of the right to use real property for a specified period of time 
D) a right to use someone else's land without owning or hiring it

Question 5

A guaranty contract between people with no bad credit history can be oral.

Accepted Answer

A) True 
 B)False

Question 6

Nina wants to borrow money from Tina but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt.James agrees to pay the debt if Nina does not.James is the ________ in this transaction.

Accepted Answer

A) creditor 
B) debtor 
C) guarantor 
D) facilitator 
A) creditor 
B) debtor 
C) guarantor 
D) facilitator

Question 7

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

Accepted Answer

A) main purpose exception 
B) mortgage 
C) guaranty contract 
D) implied integration 
A) main purpose exception 
B) mortgage 
C) guaranty contract 
D) implied integration

Question 8

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30, 000? Suggest an alternative and explain how it is beneficial to an oral contract.

Accepted Answer

It is a bad idea for Edward and his land

Question 9

When is parol evidence admitted in court?

Accepted Answer

Parol evidence may be admitted in court

Question 10

Jonas enters into an oral contract with Chelsea to lease his house to her for $100, 000.Chelsea pays him $100, 000 and moves in.A month later, Jonas learns that his state requires contracts for the lease of goods with payments of $1, 000 or more to be writing.Which of the following options does either party have?

Accepted Answer

A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B) The contract cannot be rescinded by either party as it has already been executed. 
C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B) The contract cannot be rescinded by either party as it has already been executed. 
C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Question 11

Promissory estoppel is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of signature on a written contract?

Accepted Answer

A) The contract should be signed by the party who seeks enforcement. 
B) The signature of the person who is enforcing the contract is not necessary. 
C) The signature must appear at the end of the writing. 
D) A person's nickname or initials are not binding legal signatures. 
A) The contract should be signed by the party who seeks enforcement. 
B) The signature of the person who is enforcing the contract is not necessary. 
C) The signature must appear at the end of the writing. 
D) A person's nickname or initials are not binding legal signatures.

Question 13

A ________ is a person who agrees to pay a debt if the primary debtor does not.

Accepted Answer

A) secondary contractor 
B) third-party contractor 
C) lessee 
D) guarantor 
A) secondary contractor 
B) third-party contractor 
C) lessee 
D) guarantor

Question 14

A right to use someone else's land without owning or leasing it is called ________.

Accepted Answer

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

Question 15

The UCC does not permit several writings to be integrated to form a single written contract.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true of interpreting contract words and terms?

Accepted Answer

A) Where a preprinted form contract is used, preprinted words prevail over typed words. 
B) Preprinted words prevail over handwritten words. 
C) Specific terms are presumed to qualify general terms. 
D) If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract. 
A) Where a preprinted form contract is used, preprinted words prevail over typed words. 
B) Preprinted words prevail over handwritten words. 
C) Specific terms are presumed to qualify general terms. 
D) If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

Question 17

Section 2-201(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 $1, 000 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 $1, 000 or more must be in writing.

Question 18

According to the Statute of Frauds, an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

Accepted Answer

A) True 
 B)False

Question 19

While interpreting contract words and terms, specific terms are presumed to qualify general terms.

Accepted Answer

A) True 
 B)False

Question 20

The signature of the person who is enforcing the contract is necessary.

Accepted Answer

A) True 
 B)False

Exam 14: Statute of Frauds and Equitable Exceptions

In most states, contracts for the sale of goods for $900 do not require to be in writing.

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Explain the doctrine of equitable estoppel.

Which of the following phrases explains the term lease?

A guaranty contract between people with no bad credit history can be oral.

Nina wants to borrow money from Tina but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt.James agrees to pay the debt if Nina does not.James is the ________ in this transaction.

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

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30, 000? Suggest an alternative and explain how it is beneficial to an oral contract.

When is parol evidence admitted in court?

Promissory estoppel is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Which of the following statements is true of signature on a written contract?

A ________ is a person who agrees to pay a debt if the primary debtor does not.

A right to use someone else's land without owning or leasing it is called ________.

The UCC does not permit several writings to be integrated to form a single written contract.

Which of the following statements is true of interpreting contract words and terms?

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

According to the Statute of Frauds, an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

While interpreting contract words and terms, specific terms are presumed to qualify general terms.

The signature of the person who is enforcing the contract is necessary.

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