Question 1

What types of contracts does the statute of frauds require to be in writing?

Accepted Answer

Only specific types of contracts fall within the statute of frauds and thus are required to be evidenced in writing.They are: a)contracts whose terms prevent possible performance within one year; b)promises made in consideration of marriage; c)contracts for one party to pay the debt of another if the initial party fails to pay; and d)contracts related to an interest in land.Although required to be in writing under the Uniform Commercial Code (UCC)and not the statute of frauds,a related fifth category is contracts for the sale of goods totaling more than $500.

Question 2

Lake House.Harry has two houses,a house on the lake and a house in town.Rebecca wants to buy the house on the lake.Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000.Harry hurriedly writes out a contract providing that he would sell "his house" to Rebecca for $300,000.Harry signs the top of the document.Rebecca does not sign at all.No merger clause is included in the contract.Harry backs out of the contract,and Rebecca sues him.He tells the judge that the statute of frauds is not satisfied because he did not sign the document at the end and because Rebecca did not sign at all.He also tells the judge that,at any rate,the agreement referred to the house in town,not the house on the lake; and that under the parol evidence rule,he had the right to identify the correct house.Which of the following is true regarding Harry's assertion that the statute of frauds is not satisfied because Rebecca did not sign the document?

Accepted Answer

A) Harry is incorrect because he is the one being sued,and he signed the document. 
B) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as the type of subject matter involved was referenced. 
C) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as the selling price was referenced. 
D) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as both the selling price and the type of subject matter involved was referenced. 
E) Harry is correct. 
A) Harry is incorrect because he is the one being sued,and he signed the document. 
B) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as the type of subject matter involved was referenced. 
C) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as the selling price was referenced. 
D) Harry is incorrect because the statute of frauds did not require Rebecca's signature so long as both the selling price and the type of subject matter involved was referenced. 
E) Harry is correct. A

Question 3

When a donee beneficiary may enforce his rights under a contract,he may do so against the ________.

Accepted Answer

A) promisee only 
B) promisor only 
C) delegatee only 
D) promisee and promisor,but not the delegatee 
E) promisee,promisor,and delegatee 
A) promisee only 
B) promisor only 
C) delegatee only 
D) promisee and promisor,but not the delegatee 
E) promisee,promisor,and delegatee B

Question 4

Which of the following is a false statement regarding the parol evidence rule?

Accepted Answer

A) It is not limited to spoken words. 
B) It is a rule of evidence. 
C) It relates to substantive legal issues. 
D) It is an amalgamation of different rules and conditions. 
E) It applies to writings created at the same time as the written agreement. 
A) It is not limited to spoken words. 
B) It is a rule of evidence. 
C) It relates to substantive legal issues. 
D) It is an amalgamation of different rules and conditions. 
E) It applies to writings created at the same time as the written agreement.

Question 5

Sally agrees to mow Paul's yard for $300 for the summer.Paul wishes to assign the contract to his grandmother.Sally objects because Paul's yard is very small while the grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Sally and Paul?

Accepted Answer

A) Sally will win because Paul's attempted assignment would increase the duties to which she agreed. 
B) Sally will win because all assignments are invalid without the obligor's consent. 
C) Sally will win unless Paul paid her the $300 in advance. 
D) Paul will win because he may validly assign the contract without Sally's consent. 
E) Paul will win so long as he tells Sally about the assignment prior to the time she begins performance. 
A) Sally will win because Paul's attempted assignment would increase the duties to which she agreed. 
B) Sally will win because all assignments are invalid without the obligor's consent. 
C) Sally will win unless Paul paid her the $300 in advance. 
D) Paul will win because he may validly assign the contract without Sally's consent. 
E) Paul will win so long as he tells Sally about the assignment prior to the time she begins performance.

Question 6

What is a purpose of the parol evidence rule?

Accepted Answer

A) To restrict oral evidence from being admitted that supports an agreement in its written form. 
B) To restrict written evidence from being admitted that supports an agreement in its written form. 
C) To restrict oral and written evidence from being admitted that supports an agreement in its written form. 
D) To restrict hearsay from being admitted that supports or contradicts an agreement in its written form. 
E) To restrict evidence from being admitted that substantially contradicts an agreement in its written form. 
A) To restrict oral evidence from being admitted that supports an agreement in its written form. 
B) To restrict written evidence from being admitted that supports an agreement in its written form. 
C) To restrict oral and written evidence from being admitted that supports an agreement in its written form. 
D) To restrict hearsay from being admitted that supports or contradicts an agreement in its written form. 
E) To restrict evidence from being admitted that substantially contradicts an agreement in its written form.

Question 7

Which of the following is true regarding oral assignments?

Accepted Answer

A) Assignments may not be made orally. 
B) The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $5,000. 
C) Assignments are not covered by the statute of frauds. 
D) The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $500. 
E) The Uniform Commercial Code requires that an assignment of a right to receive goods be in writing when the value of the goods is $500 or more,and that an assignment of a right to receive a service be in writing when the value of the service is $1,000 or more. 
A) Assignments may not be made orally. 
B) The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $5,000. 
C) Assignments are not covered by the statute of frauds. 
D) The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $500. 
E) The Uniform Commercial Code requires that an assignment of a right to receive goods be in writing when the value of the goods is $500 or more,and that an assignment of a right to receive a service be in writing when the value of the service is $1,000 or more.

Question 8

Define the statute of frauds,and explain the three main purposes of the statute of frauds.

Accepted Answer

The statute of frauds is a rule that req

Question 9

Under the respondeat superior rule,contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following states that in the case of multiple assignments of the same right,the first party granted the assignment is the party correctly entitled to the contractual right?

Accepted Answer

A) The first-assignment-in-time rule 
B) The last-assignment-in-time rule 
C) The English rule 
D) The French rule 
E) The race-to-the-courthouse rule 
A) The first-assignment-in-time rule 
B) The last-assignment-in-time rule 
C) The English rule 
D) The French rule 
E) The race-to-the-courthouse rule

Question 11

A donee beneficiary is a type of incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 12

One way parties can indicate their desire to create an integrated contract is through the use of a(n)________ clause.

Accepted Answer

A) executory 
B) merger 
C) adhesion 
D) condition subsequent 
E) addendum 
A) executory 
B) merger 
C) adhesion 
D) condition subsequent 
E) addendum

Question 13

Primary obligations to pay a debt must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true regarding a signature on a document falling within the statute of frauds?

Accepted Answer

A) There is no requirement of any signature of either party to satisfy the statute of frauds. 
B) Any party required to sign must sign at the beginning of the document. 
C) Any party required to sign must sign at the end of the document. 
D) Any party required to sign must sign both at the beginning and at the end of the document. 
E) So long as it is meant as a signature,a party required to sign may sign at any place on the document. 
A) There is no requirement of any signature of either party to satisfy the statute of frauds. 
B) Any party required to sign must sign at the beginning of the document. 
C) Any party required to sign must sign at the end of the document. 
D) Any party required to sign must sign both at the beginning and at the end of the document. 
E) So long as it is meant as a signature,a party required to sign may sign at any place on the document.

Question 15

How do courts generally rule in cases involving ambiguous contract language that makes it unclear what is being assigned or delegated?

Accepted Answer

A) When ambiguous language is used,the court usually considers the assignment to be of both rights and duties. 
B) When ambiguous language is used,the court usually considers the assignment to be of rights but not duties. 
C) When ambiguous language is used,the court usually considers the assignment to be of duties but not rights. 
D) When ambiguous language is used,the court usually considers the assignment to be void. 
E) When ambiguous language is used,the court usually considers the assignment to be voidable. 
A) When ambiguous language is used,the court usually considers the assignment to be of both rights and duties. 
B) When ambiguous language is used,the court usually considers the assignment to be of rights but not duties. 
C) When ambiguous language is used,the court usually considers the assignment to be of duties but not rights. 
D) When ambiguous language is used,the court usually considers the assignment to be void. 
E) When ambiguous language is used,the court usually considers the assignment to be voidable.

Question 16

A third party who is not part of an original contract but who is transferred a duty to perform set forth in the original contract is called a(n)________.

Accepted Answer

A) delegatee 
B) delegator 
C) assignor 
D) assignee 
E) transferor 
A) delegatee 
B) delegator 
C) assignor 
D) assignee 
E) transferor

Question 17

Which of the following is a term for contracts within the statute of frauds involving promises to pay the debt of another if the other party fails to pay?

Accepted Answer

A) Secondary promises 
B) Primary promises 
C) Novation agreements 
D) Third-party debts 
E) Pecuniary assignments 
A) Secondary promises 
B) Primary promises 
C) Novation agreements 
D) Third-party debts 
E) Pecuniary assignments

Question 18

The Uniform Commercial Code requires that contracts for the sale of goods for $500 or more must be in writing in order to be enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Third-Party Woes.Trudy owed Sam $40 for a book she purchased from him.Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book.Sam is not initially aware of the agreement.Betty pays no one.Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally.Bob later refuses to do so saying that promises to give gifts are not enforceable.He then moves out of town.Trudy tells both Sam and Sally that she is broke,that Sam needs to get his $40 for the book from Betty,and that Sally is owed $40 from Bob for her birthday present.What type of third-party beneficiary is Sam?

Accepted Answer

A) Intended 
B) Creditor 
C) Both intended and creditor 
D) Donee 
E) Both creditor and donee 
A) Intended 
B) Creditor 
C) Both intended and creditor 
D) Donee 
E) Both creditor and donee

Question 20

Which of the following statements is false regarding the rights of assignees and assignors?

Accepted Answer

A) Assignees essentially fill in for the assignor as the legal recipient of contractual duties. 
B) Assignees acquire the same rights as those of the assignor. 
C) Assignees are entitled to greater contractual protections than those afforded assignors. 
D) The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor. 
E) When an assignor transfers rights to an assignee,the assignor legally gives up all rights she previously had to collect on the contract. 
A) Assignees essentially fill in for the assignor as the legal recipient of contractual duties. 
B) Assignees acquire the same rights as those of the assignor. 
C) Assignees are entitled to greater contractual protections than those afforded assignors. 
D) The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor. 
E) When an assignor transfers rights to an assignee,the assignor legally gives up all rights she previously had to collect on the contract.

Exam 13: Contracts in Writing and Third-Party Contracts

What types of contracts does the statute of frauds require to be in writing?

When a donee beneficiary may enforce his rights under a contract,he may do so against the ________.

Which of the following is a false statement regarding the parol evidence rule?

Sally agrees to mow Paul's yard for $300 for the summer.Paul wishes to assign the contract to his grandmother.Sally objects because Paul's yard is very small while the grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Sally and Paul?

What is a purpose of the parol evidence rule?

Which of the following is true regarding oral assignments?

Define the statute of frauds,and explain the three main purposes of the statute of frauds.

Under the respondeat superior rule,contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

Which of the following states that in the case of multiple assignments of the same right,the first party granted the assignment is the party correctly entitled to the contractual right?

A donee beneficiary is a type of incidental beneficiary.

One way parties can indicate their desire to create an integrated contract is through the use of a(n)________ clause.

Primary obligations to pay a debt must be in writing to be enforceable.

Which of the following is true regarding a signature on a document falling within the statute of frauds?

How do courts generally rule in cases involving ambiguous contract language that makes it unclear what is being assigned or delegated?

A third party who is not part of an original contract but who is transferred a duty to perform set forth in the original contract is called a(n)________.

Which of the following is a term for contracts within the statute of frauds involving promises to pay the debt of another if the other party fails to pay?

The Uniform Commercial Code requires that contracts for the sale of goods for $500 or more must be in writing in order to be enforceable.

Which of the following statements is false regarding the rights of assignees and assignors?

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Uslegal System and Alternative Dispute Resolution

Administrative Law

Constitutional Law

Criminal Law and Business

Tort Law

Real, Personal, and Intellectual Property

Introduction to Contracts and Agreement

Consideration

Capacity and Legality

Reality of Assent

Discharge and Remedies

Formation and Performance of Sales and Lease Contracts

Sales and Lease Contracts: Performance, Warranties, and Remedies

Negotiable Instruments: Negotiability and Transferability

Holder in Due Course, Liability, and Defenses

Secured Transactions and Bankruptcy

Agency and Liability to Third Parties

Forms of Business Organization

Corporations: Formation and Organization

Securities Regulation

Employment and Discrimination Law

Consumer Law

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