Question 1

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 2

The parol evidence rule may not apply if:

Accepted Answer

A) ​the contract is materially incomplete. 
B) the parties disagree on the meaning of the contract. 
C) ​there is no ambiguity regarding the terms of the contract. 
D) ​one party is unable to perform the contractual obligations. 
A) ​the contract is materially incomplete. 
B) the parties disagree on the meaning of the contract. 
C) ​there is no ambiguity regarding the terms of the contract. 
D) ​one party is unable to perform the contractual obligations. A

Question 3

Any of the following could satisfy the requirement of a writing under the statute of frauds except:

Accepted Answer

A) ​a note. 
B) a memorandum. 
C) ​a contract. 
D) ​part performance. 
A) ​a note. 
B) a memorandum. 
C) ​a contract. 
D) ​part performance. D

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was signed by electronic signature.

Accepted Answer

A) True 
 B)False

Question 8

The statute of frauds applies to:

Accepted Answer

A) ​the lease of an apartment on a month-to-month basis. 
B) the cancellation of a written agreement for the sale and purchase of land. 
C) ​an employment agreement. 
D) ​the sale of goods priced at less than $500. 
A) ​the lease of an apartment on a month-to-month basis. 
B) the cancellation of a written agreement for the sale and purchase of land. 
C) ​an employment agreement. 
D) ​the sale of goods priced at less than $500.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Customs and trade usage can override the express provisions of a contract.

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

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

Because contracts are legally binding agreements, they must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

When interpreting an integrated contract, a court will exclude parol evidence in all of the following cases except:

Accepted Answer

A) ​to add to the terms of a contract. 
B) to modify the terms of a contract. 
C) ​to contradict the terms of a contract. 
D) ​to show fraud. 
A) ​to add to the terms of a contract. 
B) to modify the terms of a contract. 
C) ​to contradict the terms of a contract. 
D) ​to show fraud.

Question 19

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person:

Accepted Answer

A) ​can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract. 
B) can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. 
C) ​cannot recover the value of the services because they were rendered under a unilateral mistake of law. 
D) ​can have the party receiving the services arrested for obtaining property by false pretenses. 
A) ​can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract. 
B) can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. 
C) ​cannot recover the value of the services because they were rendered under a unilateral mistake of law. 
D) ​can have the party receiving the services arrested for obtaining property by false pretenses.

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

The parol evidence rule may not apply if:

Any of the following could satisfy the requirement of a writing under the statute of frauds except:

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

An oral understanding is not binding if:

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

An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was signed by electronic signature.

The statute of frauds applies to:

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

Customs and trade usage can override the express provisions of a contract.

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

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

Because contracts are legally binding agreements, they must be in writing to be enforceable.

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.

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

When interpreting an integrated contract, a court will exclude parol evidence in all of the following cases except:

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person:

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

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

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

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 Negotiable Instruments 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

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