Question 1

When the statute of frauds applies and there is no written proof of the contract,the contract is:

Accepted Answer

A) void. 
B) enforceable if there are two credible witnesses. 
C) voidable by a party who has not signed. 
D) illegal. 
A) void. 
B) enforceable if there are two credible witnesses. 
C) voidable by a party who has not signed. 
D) illegal. C

Question 2

If a contract is unclear,it will be interpreted against the party who drafted it.

Accepted Answer

A) True 
 B)False  True

Question 3

A note or memorandum does not have to contain all the essential terms of the contract to be valid.

Accepted Answer

A) True 
 B)False  False

Question 4

The parol evidence rule:

Accepted Answer

A) applies to complete written contracts. 
B) prevents proof of fraud. 
C) applies to incomplete contracts. 
D) is not designed to preserve the integrity of written contracts. 
A) applies to complete written contracts. 
B) prevents proof of fraud. 
C) applies to incomplete contracts. 
D) is not designed to preserve the integrity of written contracts.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A father's oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding when made in the course of a serious discussion.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

When there is full disclosure and representation,promises made in consideration of marriage:

Accepted Answer

A) can be written or oral. 
B) generally cannot be set aside unless they are unconscionable. 
C) are only valid if they are signed after the marriage actually takes place.. 
D) all of the above. 
A) can be written or oral. 
B) generally cannot be set aside unless they are unconscionable. 
C) are only valid if they are signed after the marriage actually takes place.. 
D) all of the above.

Question 11

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 12

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 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

A contract is interpreted to give effect to:

Accepted Answer

A) the intent of the parties. 
B) what the court believes is a fair contract. 
C) what the defendant thought the contract meant. 
D) what will be best for the economic life of the community. 
A) the intent of the parties. 
B) what the court believes is a fair contract. 
C) what the defendant thought the contract meant. 
D) what will be best for the economic life of the community.

Question 15

When a contract proves to be a bad bargain:

Accepted Answer

A) the injured party is never bound by the terms of the contract. 
B) courts will always imply terms that are necessary to avoid hardship. 
C) parties are generally still bound by the terms of the contract. 
D) the contract must be rewritten. 
A) the injured party is never bound by the terms of the contract. 
B) courts will always imply terms that are necessary to avoid hardship. 
C) parties are generally still bound by the terms of the contract. 
D) the contract must be rewritten.

Question 16

Suzy Anders enters into an oral contract to purchase a tract of land from Bill Hermes.The land is considered worthless,but Anders feels that she has discovered a possible usage that would drastically increase the value of the land.To assure herself of the potential value of the land,Anders orally hires an attorney to investigate the title and records associated with the land in question.Before gaining any information from her attorney,Anders orally contracts with a builder to construct a huge building on the site.Because of the size of the project,a completion time is difficult to predict.Anders now discovers that the land is indeed useless,a fact that she obtains through information from her attorney.
Anders now refuses to honor her contracts with Hermes,her attorney,and the builder.Must Anders honor her contractual agreements?

Accepted Answer

All contracts concerning the sale of lan

Question 17

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 18

A writing required by the statute of frauds may be a signed note or memorandum.

Accepted Answer

A) True 
 B)False

Question 19

A promise to pay a debt must be in writing if:

Accepted Answer

A) the debt is for more than $500. 
B) the debt is now due and payable. 
C) the promise is to pay the debt of another. 
D) the debt owed is the promisor's. 
A) the debt is for more than $500. 
B) the debt is now due and payable. 
C) the promise is to pay the debt of another. 
D) the debt owed is the promisor's.

Question 20

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.

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

When the statute of frauds applies and there is no written proof of the contract,the contract is:

If a contract is unclear,it will be interpreted against the party who drafted it.

A note or memorandum does not have to contain all the essential terms of the contract to be valid.

The parol evidence rule:

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

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

A father's oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding when made in the course of a serious discussion.

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

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:

When there is full disclosure and representation,promises made in consideration of marriage:

Parol evidence may be admissible to:

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

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

A contract is interpreted to give effect to:

When a contract proves to be a bad bargain:

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

A writing required by the statute of frauds may be a signed note or memorandum.

A promise to pay a debt must be in writing if:

An oral understanding is not binding if:

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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