Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property, specifically:

Accepted Answer

A)  goods. 
B)  chattel paper. 
C)  real property. 
D)  none of the above. 
A)  goods. 
B)  chattel paper. 
C)  real property. 
D)  none of the above.

Question 3

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

Accepted Answer

A)  binding. 
B)  voidable by the executor or administrator. 
C)  enforceable against the executor only if the executor signs written proof of the agreement. 
D)  enforceable against the other contracting party only if that party signs a written agreement. 
A)  binding. 
B)  voidable by the executor or administrator. 
C)  enforceable against the executor only if the executor signs written proof of the agreement. 
D)  enforceable against the other contracting party only if that party signs a written agreement.

Question 4

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

An oral understanding is not binding if:

Accepted Answer

A)  the services performed were not to the satisfaction of the other party. 
B)  the amount agreed to be paid for services rendered was not a fair and reasonable amount. 
C)  the parties intended to formalize their understanding with a written agreement. 
D)  the understanding may be terminated at will by either party. 
A)  the services performed were not to the satisfaction of the other party. 
B)  the amount agreed to be paid for services rendered was not a fair and reasonable amount. 
C)  the parties intended to formalize their understanding with a written agreement. 
D)  the understanding may be terminated at will by either party.

Question 7

The parol evidence rule generally precludes testimony that would contradict a complete written contract.

Accepted Answer

A) True 
 B)False

Question 8

The past performance of the parties under a continuing contract is important in determining what the contract means.

Accepted Answer

A) True 
 B)False

Question 9

As a rule of contractual construction and interpretation, ordinary words are to be interpreted according to their ordinary meaning; accordingly, an unambiguous contract will be interpreted as it is written, not on the basis of the secret intent of one party.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.

Accepted Answer

A) True 
 B)False

Question 12

The one-year performance requirement for an oral contract begins:

Accepted Answer

A)  on the day of the agreement. 
B)  on the first day of performance. 
C)  on the day following the agreement. 
D)  the day on which the agreement was placed in writing. 
A)  on the day of the agreement. 
B)  on the first day of performance. 
C)  on the day following the agreement. 
D)  the day on which the agreement was placed in writing.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The statute of frauds applies to:

Accepted Answer

A)  a contract of indefinite duration that is terminable at will by either party. 
B)  a promise made directly to a debtor that the promisor will pay the creditor of the debtor what is owed. 
C)  a promise by an executor to pay a claim against the estate out of his or her personal funds. 
D)  mutual promises to marry. 
A)  a contract of indefinite duration that is terminable at will by either party. 
B)  a promise made directly to a debtor that the promisor will pay the creditor of the debtor what is owed. 
C)  a promise by an executor to pay a claim against the estate out of his or her personal funds. 
D)  mutual promises to marry.

Question 15

The parol evidence rule does not prohibit proof that:

Accepted Answer

A)  the contract was thereafter modified. 
B)  conduct exists that violates the law. 
C)  the written contract is not a binding agreement. 
D)  all of the above. 
A)  the contract was thereafter modified. 
B)  conduct exists that violates the law. 
C)  the written contract is not a binding agreement. 
D)  all of the above.

Question 16

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

Accepted Answer

A)  the contract will be interpreted to be for $3,000. 
B)  the contract will be interpreted to be for $4,000. 
C)  there is a contract but the courts will not specify the dollar amount, as a conflict exists. 
D)  a compromise settlement amount of $3,500 will be used. 
A)  the contract will be interpreted to be for $3,000. 
B)  the contract will be interpreted to be for $4,000. 
C)  there is a contract but the courts will not specify the dollar amount, as a conflict exists. 
D)  a compromise settlement amount of $3,500 will be used.

Question 17

Parol evidence may be admissible to:

Accepted Answer

A)  contradict a complete written contract. 
B)  prove the modification or termination of a contract. 
C)  replace the statute of frauds. 
D)  create a contract. 
A)  contradict a complete written contract. 
B)  prove the modification or termination of a contract. 
C)  replace the statute of frauds. 
D)  create a contract.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 17: Writing, Electronic Forms, and Interpretation of Contracts

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

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property, specifically:

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

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

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

An oral understanding is not binding if:

The parol evidence rule generally precludes testimony that would contradict a complete written contract.

The past performance of the parties under a continuing contract is important in determining what the contract means.

As a rule of contractual construction and interpretation, ordinary words are to be interpreted according to their ordinary meaning; accordingly, an unambiguous contract will be interpreted as it is written, not on the basis of the secret intent of one party.

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

The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.

The one-year performance requirement for an oral contract begins:

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

The statute of frauds applies to:

The parol evidence rule does not prohibit proof that:

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

Parol evidence may be admissible to:

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

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

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

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, Parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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