Question 1

List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.

Accepted Answer

Agreements requiring a writing within the statute of frauds include: (a)agreements for the sale of any interest in land,subject to certain exceptions; (b)agreements that cannot be performed within one year from the date of the agreement; (c)a promise to pay the debt of another,subject to the leading object rule exception; (d)a promise made by an executor of an estate to use his personal funds to pay a debt of the decedent; (e)a promise made in consideration of marriage; and (f)a contract for the sale of goods worth $500 or more.If the agreement does not have a writing sufficient to satisfy the statute of frauds,it is unenforceable,but not void or illegal.The parties may still choose to perform the contract.

Question 2

Parol evidence refers to anything (other than the written contract itself)that was said,done,or written before or as the parties signed the contract.

Accepted Answer

A) True 
 B)False  True

Question 3

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant.Robert agreed to do so,but requested a written contract.Alfred assured him that the company attorney would prepare such a contract as soon as possible,but Alfred needed Robert to start at once.Accordingly,Robert sold his house,moved his family,and commenced to work for Alfred.He was fired without cause two months later.No written contract was ever executed.Can Robert enforce Alfred's oral promise?

Accepted Answer

A)  No. This was a contract for longer than one year. Without a writing it violates the statute of frauds and is not enforceable. 
B)  Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise. 
C)  Yes. This is a personal satisfaction contract, and Alfred gave no reason for dissatisfaction. Robert can recoup the loss he took on the sale of his house. 
D)  Yes. This is a partial performance of the sale of goods. Robert can recoup the loss he took on the sale of his house. 
A)  No. This was a contract for longer than one year. Without a writing it violates the statute of frauds and is not enforceable. 
B)  Maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise. 
C)  Yes. This is a personal satisfaction contract, and Alfred gave no reason for dissatisfaction. Robert can recoup the loss he took on the sale of his house. 
D)  Yes. This is a partial performance of the sale of goods. Robert can recoup the loss he took on the sale of his house. B

Question 4

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Accepted Answer

A)  Totally integrated contracts. 
B)  Incomplete contracts. 
C)  Ambiguous contracts. 
D)  Oral contracts. 
A)  Totally integrated contracts. 
B)  Incomplete contracts. 
C)  Ambiguous contracts. 
D)  Oral contracts.

Question 5

Sweet Plantation,Inc.made a written contract with Candy,Inc.whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound.A dispute arose as to how much sugar Sweet is to supply.The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

Accepted Answer

A) True 
 B)False

Question 6

Martin,Human Resources Director for Spring Co.,sent Lynn the following signed letter: "This letter confirms our offer to you.We will pay for your moving expenses,up to $1,500.Your starting date will be February 1,and you will become eligible for health care benefits as of May 1.You will receive a starting salary of $36,500 annually,with reviews and eligibility for increases at six months,12 months,and annually thereafter.Vacation will be for two weeks a year after one year." Spring fired Lynn eight months after she started to work,and Lynn sued arguing the letter constituted a memorandum of an oral contract for employment for five years.Is the letter sufficient to satisfy the statute of frauds?

Accepted Answer

A)  Yes, to satisfy the statute of frauds, a memorandum is sufficient if it evidences an oral contract between the parties and is signed by the defendant. 
B)  Yes, the memorandum is signed by the defendant and states with reasonable certainty the subject matter and essential terms of the agreement. 
C)  No, to satisfy the statute of frauds, the memorandum must contain all essential terms of the contract. 
D)  No, the letter was not formal enough to satisfy the statute of frauds. 
A)  Yes, to satisfy the statute of frauds, a memorandum is sufficient if it evidences an oral contract between the parties and is signed by the defendant. 
B)  Yes, the memorandum is signed by the defendant and states with reasonable certainty the subject matter and essential terms of the agreement. 
C)  No, to satisfy the statute of frauds, the memorandum must contain all essential terms of the contract. 
D)  No, the letter was not formal enough to satisfy the statute of frauds.

Question 7

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials,RWH,from TriColor Textiles.TriColor had just finished monogramming the blankets when Rest Well called and canceled the order.TriColor will be able to enforce the agreement even though there was no writing.

Accepted Answer

A) True 
 B)False

Question 8

J.T.Tidwell entered into an oral contract with Robert Anthony for the purchase of 100 head of cattle at a price of $500 each.When the oral contract was made,Tidwell gave Anthony a check for $1000 as "earnest money or good faith money towards the purchase of the cattle." Anthony sold the cattle to someone else.Tidwell sued,asking the court to either compel Anthony to perform the contract or to pay damages that Tidwell suffered from the alleged breach of contract.What issues do you see and how would you resolve those issues?

Accepted Answer

Cattle are goods.The statute of frauds r

Question 9

Under the UCC,which of the following contracts may be enforceable,even without a written memorandum?

Accepted Answer

A)  The seller is specially manufacturing the goods for the buyer. 
B)  The seller admits in court that there was a contract. 
C)  The seller has delivered the goods. 
D)  All of the above. 
A)  The seller is specially manufacturing the goods for the buyer. 
B)  The seller admits in court that there was a contract. 
C)  The seller has delivered the goods. 
D)  All of the above.

Question 10

Under a contract for the sale of land,the statute of frauds:

Accepted Answer

A)  does not apply if the purchase price for the land is less than $500. 
B)  requires that the entire agreement be in one single document. 
C)  requires the defendant to sign the agreement. 
D)  does not apply if the total price of the land is to be paid in less than one year.. 
A)  does not apply if the purchase price for the land is less than $500. 
B)  requires that the entire agreement be in one single document. 
C)  requires the defendant to sign the agreement. 
D)  does not apply if the total price of the land is to be paid in less than one year..

Question 11

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 12

In order to satisfy the statute of frauds,a writing must:

Accepted Answer

A)  be a formal written document drafted by an attorney. 
B)  be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises. 
C)  be notarized. 
D)  All of the above. 
A)  be a formal written document drafted by an attorney. 
B)  be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises. 
C)  be notarized. 
D)  All of the above.

Question 13

Vicki entered into a written contract to buy a car from Valley Motors.During the negotiations,the sales representative said that the car had a two-year full warranty.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty.Two months after Vicki took delivery of the car,she discovered that the transmission needed to be replaced.Vicki claimed that it was covered by the full warranty.Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

Accepted Answer

A)  No. The parol evidence rule will most likely exclude any evidence of the discussion of the warranty. 
B)  Yes. The leading object rule will allow evidence as to the discussion of the warranty. 
C)  Yes. The evidence is needed because the contract is ambiguous. 
D)  No, because the contract was fully executed. 
A)  No. The parol evidence rule will most likely exclude any evidence of the discussion of the warranty. 
B)  Yes. The leading object rule will allow evidence as to the discussion of the warranty. 
C)  Yes. The evidence is needed because the contract is ambiguous. 
D)  No, because the contract was fully executed.

Question 14

When a contract falls within the statute of frauds but is not reduced to a writing,the contract is:

Accepted Answer

A)  illegal. 
B)  unenforceable. 
C)  void. 
D)  voidable. 
A)  illegal. 
B)  unenforceable. 
C)  void. 
D)  voidable.

Question 15

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

Accepted Answer

A)  UCC requires only the signature of both parties. 
B)  UCC does not require all the terms of the agreement to be in writing. 
C)  common law requires only an indication that the parties reached an agreement. 
D)  common law requires only the signature of the defendant and the quantity of goods being sold. 
A)  UCC requires only the signature of both parties. 
B)  UCC does not require all the terms of the agreement to be in writing. 
C)  common law requires only an indication that the parties reached an agreement. 
D)  common law requires only the signature of the defendant and the quantity of goods being sold.

Question 16

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie.Bonnie has raised the parol evidence rule as an objection to Scott's testimony.In which of the following circumstances will Scott not be able to introduce the oral evidence?

Accepted Answer

A)  The contract has an integration clause in it and Scott's point of contention is covered in detail in the contract, although not to his favor. 
B)  There was a mutual mistake of a material fact when the contract was entered into. 
C)  The oral evidence is introduced to clarify the meaning of an ambiguous term used in the written contract. 
D)  Scott claims that he was defrauded into entering into the contract and wants to testify about the intentional misrepresentations of material facts. 
A)  The contract has an integration clause in it and Scott's point of contention is covered in detail in the contract, although not to his favor. 
B)  There was a mutual mistake of a material fact when the contract was entered into. 
C)  The oral evidence is introduced to clarify the meaning of an ambiguous term used in the written contract. 
D)  Scott claims that he was defrauded into entering into the contract and wants to testify about the intentional misrepresentations of material facts.

Question 17

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts,but now the British government has repealed the writing requirement for most contracts.

Accepted Answer

A) True 
 B)False

Question 18

Robin and Bellman,both merchants,orally agree to a contract for the sale of $5000 of accessories.Bellman,the buyer,sends to Robin,the seller,a written confirmation of the sale,which is sufficient against Bellman under the statute of frauds and which Bellman signs.Robin does not sign.Robin fails to perform the contract and does not ship out the goods.Bellman sues.This contract is:

Accepted Answer

A)  unenforceable, because Robin did not sign any contract. 
B)  unenforceable, because Bellman did not pay for the goods. 
C)  enforceable, because Bellman sent the written confirmation of the sale, thereby partially performing the contract. 
D)  enforceable even without Robin's signature because both parties are merchants. 
A)  unenforceable, because Robin did not sign any contract. 
B)  unenforceable, because Bellman did not pay for the goods. 
C)  enforceable, because Bellman sent the written confirmation of the sale, thereby partially performing the contract. 
D)  enforceable even without Robin's signature because both parties are merchants.

Question 19

Under the statute of frauds,the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party,the subject matter of the agreement,and all of the essential terms and promises.

Accepted Answer

A) True 
 B)False

Question 20

Whittle sent an order over the Internet for a $1,200 garage door.His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

Accepted Answer

A) True 
 B)False

Exam 15: Written Contracts

List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.

Parol evidence refers to anything (other than the written contract itself)that was said,done,or written before or as the parties signed the contract.

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials,RWH,from TriColor Textiles.TriColor had just finished monogramming the blankets when Rest Well called and canceled the order.TriColor will be able to enforce the agreement even though there was no writing.

Under the UCC,which of the following contracts may be enforceable,even without a written memorandum?

Under a contract for the sale of land,the statute of frauds:

Either party may demand rescission of a fully executed oral contract if it was required to have been in writing under the statute of frauds.

In order to satisfy the statute of frauds,a writing must:

When a contract falls within the statute of frauds but is not reduced to a writing,the contract is:

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie.Bonnie has raised the parol evidence rule as an objection to Scott's testimony.In which of the following circumstances will Scott not be able to introduce the oral evidence?

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts,but now the British government has repealed the writing requirement for most contracts.

Under the statute of frauds,the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party,the subject matter of the agreement,and all of the essential terms and promises.

Whittle sent an order over the Internet for a $1,200 garage door.His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

Introduction To Law

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Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

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International Law

Introduction To Contracts

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Consideration

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Third Parties

Performance And Discharge

Remedies

Practical Contracts

Introduction To Sales

Ownership And Risk

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Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

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Starting A Business

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