Exam 15: Contracts in Writing

A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.

The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing.

The parol evidence rule is:

a. What are the basic requirements of a writing within the statute of frauds in Article 2 of the UCC? b. In what three cases does Article 2 of the UCC permit an oral contract?

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

A contract to pay for lawn care services costing $1,500 would have to be in writing or in proper electronic form to be enforceable.

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.

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.

Richard agrees to supply Henry with all his needs of specially made shampoo for Henry's beauty salon. Henry believes that Richard is a representative of a famous hair products company, but he finds a letter to a competitor written by Richard two days before Henry's agreement with Richard was signed, proving that Richard is a fraud. Richard says that this letter may not be admitted in court since their contract is wholly integrated. Is he correct?

With regard to the interpretation of a contract, what priority is given to each of the following items? (a) Course of dealing (b) Usage of trade (c) Express terms (d) Course of performance

In determining the meaning of a contract, which of the following will have first priority?

Where a contractual term has more than one possible meaning, it will be interpreted in favor of the party who supplied the contract.

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable.

The UCC requires that all contracts for the sale of goods must be in writing or in proper electronic form.

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?

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

The main purpose doctrine is a court-developed exception to the suretyship provision.

Although not covered by the original statute of frauds, most states have statutes requiring a writing to make all but which of the following contracts enforceable?

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?

Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. If this promise is made orally, it is not enforceable.