Question 1

In a guaranty arrangement,the guarantor:

Accepted Answer

A)  promises to pay the debt of another in any circumstance 
B)  promises to pay the debt of another if that other person does not pay 
C)  promises to pay the debt of another contingent upon the happening of some external event 
D)  promises to assume responsibility for the quality of goods 
E)  promises to collect a debt or debts on behalf of a creditor 
A)  promises to pay the debt of another in any circumstance 
B)  promises to pay the debt of another if that other person does not pay 
C)  promises to pay the debt of another contingent upon the happening of some external event 
D)  promises to assume responsibility for the quality of goods 
E)  promises to collect a debt or debts on behalf of a creditor

Question 2

The Statute of Frauds:

Accepted Answer

A)  makes certain contracts illegal if they are not in writing 
B)  makes contracts covered by it voidable 
C)  is designed to protect minors from being taken advantage of 
D)  makes certain contracts unenforceable if they are not in writing 
A)  makes certain contracts illegal if they are not in writing 
B)  makes contracts covered by it voidable 
C)  is designed to protect minors from being taken advantage of 
D)  makes certain contracts unenforceable if they are not in writing

Question 3

Ed's Cars is selling a car called the "Whamo" for $499.00 to Jane.The contract between the parties does not have to be in writing.

Accepted Answer

A) True 
 B)False

Question 4

Under the UCC Statute of Frauds,a contract for the sale of goods for the price of $500 must be in writing.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT one of the general rules of contract interpretation?

Accepted Answer

A)  Ordinary words are interpreted according to their ordinary dictionary definition. 
B)  General terms are controlling over any inconsistent specific terms. 
C)  Handwritten words control over preprinted words. 
D)  Ambiguities are construed against the party who drafted the contract. 
E)  Technical words are given their technical meaning. 
A)  Ordinary words are interpreted according to their ordinary dictionary definition. 
B)  General terms are controlling over any inconsistent specific terms. 
C)  Handwritten words control over preprinted words. 
D)  Ambiguities are construed against the party who drafted the contract. 
E)  Technical words are given their technical meaning.

Question 6

Under the Statute of Frauds,express easements must be in writing.

Accepted Answer

A) True 
 B)False

Question 7

When a contract for the sale of goods is modified such that the total price due under the contract is modified,under what circumstances must the agreement to modify be in writing?

Accepted Answer

A)  If the original contract amount was $500 or more. 
B)  If the contract price is changed by more than $500. 
C)  If the new contract price is more than $500. 
D)  B and C only are true. 
E)  A,B,and C are true. 
A)  If the original contract amount was $500 or more. 
B)  If the contract price is changed by more than $500. 
C)  If the new contract price is more than $500. 
D)  B and C only are true. 
E)  A,B,and C are true.

Question 8

The "part performance" exception to the Statute of Frauds would allow an oral contract for the transfer of land to be enforced if the buyer had taken possession of and/or paid for the land.

Accepted Answer

A) True 
 B)False

Question 9

A signed written contract states that "Sam will pay $900 for Skitravel to provide a week of skiing that includes lift tickets Sunday through Wednesday at Vail and Thursday through Saturday at Aspen.Skitravel will provide seven nights of lodging: Sunday,Monday,and Tuesday at Vail Hotel and Thursday,Friday,and Saturday at Aspen Lodge." The written contract failed to mention where Wednesday night accommodations would be.Which of the following statements,all made before this contract was signed,could be admitted into evidence?

Accepted Answer

A)  "Wednesday night the accommodations will be at Vail Hotel." 
B)  "Saturday you will stay at the Westin Hotel in Aspen." 
C)  "Group lesson fees are included if you want lessons." 
D)  Because these statements are not in writing,none can be admitted into evidence. 
A)  "Wednesday night the accommodations will be at Vail Hotel." 
B)  "Saturday you will stay at the Westin Hotel in Aspen." 
C)  "Group lesson fees are included if you want lessons." 
D)  Because these statements are not in writing,none can be admitted into evidence.

Question 10

One night at a restaurant,Mark and Mary wrote up an agreement on a couple of napkins about a construction project whereby Mark would build a room addition to Mary's house.Mark said he would do this in exchange for Mary agreeing to marry him.It took two napkins because the agreement would not fit on a single napkin.On one of the napkins,it was stated that the addition would be built according to plans "that are drawn up on a yellow pad at Mary's house." Mark signed one of the napkins,but Mary signed neither.The contract price was $30,000.A few days later Mark saw the plans,which were more complex than he expected.He told Mary that he could not do the addition.Discuss Mark's claims that Mary did not sign the agreement,there is no sufficient writing,and that the parol evidence rule keeps the plans out of the agreement.

Accepted Answer

A writing is required because the contra

Question 11

A lease for more than a one-year term must comply with the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 12

Parol evidence can be admitted regarding additions to contracts,so long as they are reasonable.

Accepted Answer

A) True 
 B)False

Question 13

The Statute of Frauds is generally raised by one party as a defense to the enforcement of the contract by the other party.

Accepted Answer

A) True 
 B)False

Question 14

Under the Statute of Frauds:

Accepted Answer

A)  the writing must be contained in a single document 
B)  the writing must be signed by both parties 
C)  any required signatures must be the complete signature of the person 
D)  incorporation of other documents by reference is permitted 
A)  the writing must be contained in a single document 
B)  the writing must be signed by both parties 
C)  any required signatures must be the complete signature of the person 
D)  incorporation of other documents by reference is permitted

Question 15

An oral contract for the sale of land is:

Accepted Answer

A)  void 
B)  enforceable 
C)  voidable 
D)  unenforceable 
E)  implied 
A)  void 
B)  enforceable 
C)  voidable 
D)  unenforceable 
E)  implied

Question 16

The equal dignity rule only applies if a private sale by owner of real estate is taking place.

Accepted Answer

A) True 
 B)False

Question 17

Regardless of whether or not the parties have defined the words or terms of a contract,the courts will apply what is referred to as the standards of interpretation.

Accepted Answer

A) True 
 B)False

Question 18

An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:

Accepted Answer

A)  a guaranty contract 
B)  unenforceable under the Statute of Frauds because it cannot possibly be performed within one year 
C)  enforceable under the Statute of Frauds 
D)  A and C only 
E)  A and B only 
A)  a guaranty contract 
B)  unenforceable under the Statute of Frauds because it cannot possibly be performed within one year 
C)  enforceable under the Statute of Frauds 
D)  A and C only 
E)  A and B only

Question 19

If Fred cannot finish building a 20-story hotel by the contract's own terms within one year of its formation,the contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 20

Promissory estoppel is a remedy at law.

Accepted Answer

A) True 
 B)False

Exam 14: Statute of Frauds and Equitable Exceptions

In a guaranty arrangement,the guarantor:

The Statute of Frauds:

Ed's Cars is selling a car called the "Whamo" for $499.00 to Jane.The contract between the parties does not have to be in writing.

Under the UCC Statute of Frauds,a contract for the sale of goods for the price of $500 must be in writing.

Which of the following is NOT one of the general rules of contract interpretation?

Under the Statute of Frauds,express easements must be in writing.

When a contract for the sale of goods is modified such that the total price due under the contract is modified,under what circumstances must the agreement to modify be in writing?

The "part performance" exception to the Statute of Frauds would allow an oral contract for the transfer of land to be enforced if the buyer had taken possession of and/or paid for the land.

A lease for more than a one-year term must comply with the Statute of Frauds.

Parol evidence can be admitted regarding additions to contracts,so long as they are reasonable.

The Statute of Frauds is generally raised by one party as a defense to the enforcement of the contract by the other party.

Under the Statute of Frauds:

An oral contract for the sale of land is:

The equal dignity rule only applies if a private sale by owner of real estate is taking place.

Regardless of whether or not the parties have defined the words or terms of a contract,the courts will apply what is referred to as the standards of interpretation.

An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:

If Fred cannot finish building a 20-story hotel by the contract's own terms within one year of its formation,the contract must be in writing.

Promissory estoppel is a remedy at law.

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