Question 1

An oral contract can be enforced when it relates to:

Accepted Answer

A) ​the purchase of a television set for $200. 
B) the sale of an interest in land for $400. 
C) ​managing a factory for five years. 
D) ​a promise to answer for the debt of another. 
A) ​the purchase of a television set for $200. 
B) the sale of an interest in land for $400. 
C) ​managing a factory for five years. 
D) ​a promise to answer for the debt of another.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The parol evidence rule does not apply in which of the following scenarios?

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 5

The provisions of a contract must be construed as a whole in such a way that every part is given effect.

Accepted Answer

A) True 
 B)False

Question 6

In interpreting an ambiguous contract, one part of the contract:

Accepted Answer

A) ​must be viewed in isolation. 
B) must be viewed as a condition. 
C) ​must be viewed in connection with the rest of the contract. 
D) ​must be viewed as indicating joint and several liability. 
A) ​must be viewed in isolation. 
B) must be viewed as a condition. 
C) ​must be viewed in connection with the rest of the contract. 
D) ​must be viewed as indicating joint and several liability.

Question 7

The defense of noncompliance may not be raised by:

Accepted Answer

A) ​the parties to the oral contract. 
B) third parties such as an insurance company or the IRS. 
C) ​a promisor on the original contract. 
D) ​a promisee on the original contract. 
A) ​the parties to the oral contract. 
B) third parties such as an insurance company or the IRS. 
C) ​a promisor on the original contract. 
D) ​a promisee on the original contract.

Question 8

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.

Question 9

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?

Accepted Answer

Yes. The price of the models is indefini

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Parol evidence generally is admissible to explain:

Accepted Answer

A) ​ambiguous terms. 
B) why signatures are missing. 
C) ​why a contract was not performed. 
D) ​implied terms. 
A) ​ambiguous terms. 
B) why signatures are missing. 
C) ​why a contract was not performed. 
D) ​implied terms.

Question 13

No writing is required for a service contract that can be performed within one year after the date of the agreement.

Accepted Answer

A) True 
 B)False

Question 14

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 15

The writing required by the statute of frauds in the case of a contract for the sale of land must:

Accepted Answer

A) ​be addressed to the other party to the contract. 
B) be made with the intent to create a writing to satisfy the statute of frauds. 
C) ​be signed at the end of the writing. 
D) ​describe the land to be sold. 
A) ​be addressed to the other party to the contract. 
B) be made with the intent to create a writing to satisfy the statute of frauds. 
C) ​be signed at the end of the writing. 
D) ​describe the land to be sold.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The statute of frauds:

Accepted Answer

A) ​requires full disclosure in the case of consumer sales on credit. 
B) requires a seller of real estate to obtain a broker's license. 
C) ​specifies the punishment of perjury. 
D) ​requires that a contract for the sale of land be evidenced by a writing. 
A) ​requires full disclosure in the case of consumer sales on credit. 
B) requires a seller of real estate to obtain a broker's license. 
C) ​specifies the punishment of perjury. 
D) ​requires that a contract for the sale of land be evidenced by a writing.

Question 18

The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

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

An oral contract can be enforced when it relates to:

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

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

The parol evidence rule does not apply in which of the following scenarios?

The provisions of a contract must be construed as a whole in such a way that every part is given effect.

In interpreting an ambiguous contract, one part of the contract:

The defense of noncompliance may not be raised by:

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

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

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

Parol evidence generally is admissible to explain:

No writing is required for a service contract that can be performed within one year after the date of the agreement.

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

The writing required by the statute of frauds in the case of a contract for the sale of land must:

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

The statute of frauds:

The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.

The parol evidence rule:

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

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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