Question 1

If there is an ambiguity in a contract,the ambiguity will be resolved in favor of the party who drafted the contract.

Accepted Answer

A) True 
 B)False  False

Question 2

When is parol evidence admitted in court?

Accepted Answer

Parol evidence may be admitted in court if it:
1. shows that a contract is void or voidable (e.g.,evidence that the contract was induced by fraud,misrepresentation,duress,undue influence,or mistake).
2. explains ambiguous language.
3. concerns a prior course of dealing or course of performance between the parties or a usage of trade.
4. fills in the gaps in a contract (e.g.,if a price term or time of performance term is omitted from a written contract,the court can hear parol evidence to imply the reasonable price or time of performance under the contract).
5. corrects an obvious clerical or typographical error.The court can reform the contract to reflect the correction.

Question 3

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Accepted Answer

A) Promissory estoppel 
B) Merger clause 
C) Main purpose exception 
D) Leading object exception 
A) Promissory estoppel 
B) Merger clause 
C) Main purpose exception 
D) Leading object exception A

Question 4

Section 2-201(1)of the Uniform Commercial Code (UCC)is the basic Statute of Frauds provision for ________.

Accepted Answer

A) sales contracts 
B) lease contracts 
C) all contracts involving interests in real property 
D) mortgage contracts 
A) sales contracts 
B) lease contracts 
C) all contracts involving interests in real property 
D) mortgage contracts

Question 5

Built-in cabinets in a house would be considered as permanent parts of the real property.

Accepted Answer

A) True 
 B)False

Question 6

The Uniform Commercial Code (UCC)does not permit several writings to be integrated to form a single written contract.

Accepted Answer

A) True 
 B)False

Question 7

Statute of Frauds is a state statute that requires certain types of contracts to be in writing.

Accepted Answer

A) True 
 B)False

Question 8

Nina wants to borrow money from Tina,but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt.James agrees to pay the debt if Nina does not.James is the ________ in this transaction.

Accepted Answer

A) creditor 
B) debtor 
C) guarantor 
D) facilitator 
A) creditor 
B) debtor 
C) guarantor 
D) facilitator

Question 9

________ refers to the integration made by express reference in one document that refers to and incorporates another document within it.

Accepted Answer

A) Implied integration 
B) Incorporation by reference 
C) Executory contract 
D) Merger clause 
A) Implied integration 
B) Incorporation by reference 
C) Executory contract 
D) Merger clause

Question 10

How are contract words and terms interpreted?

Accepted Answer

If the parties have not defined the word

Question 11

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

Accepted Answer

A) True 
 B)False

Question 12

A lease is an interest in real property given to a lender as security for the repayment of a loan.

Accepted Answer

A) True 
 B)False

Question 13

An easement contract occurs when one person agrees to answer for the debts or duties of another person.

Accepted Answer

A) True 
 B)False

Question 14

Promissory estoppel is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Accepted Answer

A) True 
 B)False

Question 15

In a guarantee situation,the guarantor's liability is secondary.

Accepted Answer

A) True 
 B)False

Question 16

A guaranty contract between people with no bad credit history can be oral.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an example of a specific term qualifying general term?

Accepted Answer

A) Currency referred to as bank transfer 
B) Pounds referred to as length 
C) Bills referred to as papers 
D) Dollars referred to as Australian dollars 
A) Currency referred to as bank transfer 
B) Pounds referred to as length 
C) Bills referred to as papers 
D) Dollars referred to as Australian dollars

Question 18

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

Accepted Answer

A) lease 
B) mortgage 
C) life estate 
D) easement 
A) lease 
B) mortgage 
C) life estate 
D) easement

Question 19

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30,000? Suggest an alternative and explain how it is beneficial to an oral contract.

Accepted Answer

It is a bad idea for Edward and his land

Question 20

Under which of the following conditions does a promissory estoppel provide for the enforceability of an oral contract?

Accepted Answer

A) when the promise induces action or forbearance of action by another 
B) when the reliance on the oral promise was unforeseeable 
C) when enforcing the oral promise provides for faster resolution of the case 
D) when the oral promise provides for reduced damages to the defendant 
A) when the promise induces action or forbearance of action by another 
B) when the reliance on the oral promise was unforeseeable 
C) when enforcing the oral promise provides for faster resolution of the case 
D) when the oral promise provides for reduced damages to the defendant

Exam 14: Statute of Frauds and Equitable Exceptions

If there is an ambiguity in a contract,the ambiguity will be resolved in favor of the party who drafted the contract.

When is parol evidence admitted in court?

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Section 2-201(1)of the Uniform Commercial Code (UCC)is the basic Statute of Frauds provision for ________.

Built-in cabinets in a house would be considered as permanent parts of the real property.

The Uniform Commercial Code (UCC)does not permit several writings to be integrated to form a single written contract.

Statute of Frauds is a state statute that requires certain types of contracts to be in writing.

Nina wants to borrow money from Tina,but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt.James agrees to pay the debt if Nina does not.James is the ________ in this transaction.

________ refers to the integration made by express reference in one document that refers to and incorporates another document within it.

How are contract words and terms interpreted?

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

A lease is an interest in real property given to a lender as security for the repayment of a loan.

An easement contract occurs when one person agrees to answer for the debts or duties of another person.

Promissory estoppel is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

In a guarantee situation,the guarantor's liability is secondary.

A guaranty contract between people with no bad credit history can be oral.

Which of the following is an example of a specific term qualifying general term?

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30,000? Suggest an alternative and explain how it is beneficial to an oral contract.

Under which of the following conditions does a promissory estoppel provide for the enforceability of an oral contract?

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