Exam 16: Writing, Electronic Forms, and Interpretation of Contracts

A promise to grant a mortgage on real property does not require a writing because it is not a transfer of land.

If words and numbers contradict each other in a contract, the rule of construction favors the words.

When an insurance policy is ambiguous, the policy is interpreted:

When a contract falls within the statute of frauds, the signatures of both parties must be shown to the court.

Franklin, a hobby-shop supplier, and Gordon, a hobby-shop owner, entered into a contract that provided that Franklin would sell Gordon fifty World War II battleship models at Franklin's cost of $2.95 each, plus a reasonable profit. Gordon brought suit to enforce the contract against Franklin, who refused to deliver the models. Franklin claimed that there was no contract because of indefiniteness. Is Franklin correct?

An oral contract to sell a house is binding if:

The defense of noncompliance may not be raised by:

An oral agreement to supply a line of credit for two (2) years cannot be enforced because of the statute of frauds.

In the absence of a statute requiring a writing, a contract may be oral or written.

The parol evidence rule does not apply to changes made after the signing of the contract.

An oral contract containing a promise by an executor to pay estate debts from estate funds is:

A court can imply details of a performance which are not expressly stated in a contract.

A father's handshake and oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding.

Parol evidence generally is admissible to explain:

Under the majority view, a contract that does not satisfy the statute of frauds is not enforceable.

Parol evidence is not admissible to show fraud, duress or mistake.

Through incorporation by deference, a contract can consist of both the original document and the detailed statement that is incorporated in it.

When persons enter into an agreement, it is presumed that they intent the agreement to have some effect.

Under the statute of frauds, an oral contract must be completed within one year after performance begins.

Jones and Clark entered into a written contract for the purchase of an apartment building by Clark. The contract was carefully drafted to set forth the agreement of the parties. It was signed by both parties. Clark subsequently claimed that the contract did not cover all the terms included in the written and oral agreements that the parties had made during their prior negotiations.?Jones claimed that the parol evidence rule barred proof of all of their prior agreements. Which claim would be upheld in court?