Exam 15: Contracts in Writing

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Most types of contracts are valid without being written.

Under the UCC parol evidence rule, usage of trade will take priority over specific provisions in a written contract.

The word "parol" literally means release.

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.

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing.

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

Chris receives a printed form in the mail from Wyandott Heating & Air indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Abco Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building. Abco promises Ace that it will pay for the materials if the subcontractor does not. Abco's oral promise is enforceable.

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

A written, integrated 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. In this case:

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

The statute of frauds has to do with fraud in the inducement of a contract.

Sam orally agreed to sell his house to Humphrey. Humphrey wanted it ready for his family quickly, so after he paid Sam a 5% deposit, he had a new roof put on, new carpeting installed, and he renovated the kitchen. Sam now thinks the place looks great and has decided not to sell. A business law student told him he could back out of the oral agreement. Can he? Explain.

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

On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it, either directly or by reference.

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

In interpreting a contract, terms which have been separately negotiated are given priority over standardized pre-printed terms.