Question 1

A merger clause stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

Accepted Answer

A)  lease 
B)  mortgage 
C)  life estate 
D)  easement 
A)  lease 
B)  mortgage 
C)  life estate 
D)  easement

Question 3

A lease is an interest in real property given to a lender as security for the repayment of a loan.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following does the one-year rule state?

Accepted Answer

A)  Every contract in writing is subject to yearly renewal. 
B)  The terms of a written contract can be modified within a year of its formation. 
C)  A contract that cannot be performed on its own terms within a year should be in writing. 
D)  Valid contracts cannot be rescinded by either party until a year after their formation. 
A)  Every contract in writing is subject to yearly renewal. 
B)  The terms of a written contract can be modified within a year of its formation. 
C)  A contract that cannot be performed on its own terms within a year should be in writing. 
D)  Valid contracts cannot be rescinded by either party until a year after their formation.

Question 5

The doctrine of part performance is an exception to the Statute of Frauds' writing requirement that courts can apply in order to achieve justice in situations where it is not possible to return the parties to their status quo.

Accepted Answer

A) True 
 B)False

Question 6

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Accepted Answer

A)  Promissory estoppel 
B)  Merger clause 
C)  Main purpose exception 
D)  Leading object exception 
A)  Promissory estoppel 
B)  Merger clause 
C)  Main purpose exception 
D)  Leading object exception

Question 7

Placing several documents in the same envelope indicates implied integration.

Accepted Answer

A) True 
 B)False

Question 8

Section 2-201(1) of the Uniform Commercial Code (UCC) states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an instance of a mortgage?

Accepted Answer

A)  Richard pays Ellen $1000 a month to live in her apartment. 
B)  Richard pays Ellen $12,000 a year to live in her apartment. 
C)  Richard gives his country estate as collateral to a bank from where he has borrowed money to buy an apartment. 
D)  Richard has been living in an apartment for thirty years and upon his death, the apartment will be transferred to somebody else. 
A)  Richard pays Ellen $1000 a month to live in her apartment. 
B)  Richard pays Ellen $12,000 a year to live in her apartment. 
C)  Richard gives his country estate as collateral to a bank from where he has borrowed money to buy an apartment. 
D)  Richard has been living in an apartment for thirty years and upon his death, the apartment will be transferred to somebody else.

Question 10

The ________ states that an executory contract which cannot be performed by its own terms within one year of its formation must be in writing.

Accepted Answer

A)  parol evidence rule 
B)  common law of contracts 
C)  merger clause 
D)  one-year rule 
A)  parol evidence rule 
B)  common law of contracts 
C)  merger clause 
D)  one-year rule

Question 11

Nina wants to borrow money from Tina, but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt. James agrees to pay the debt if Nina does not. James is the ________ in this transaction.

Accepted Answer

A)  creditor 
B)  debtor 
C)  guarantor 
D)  facilitator 
A)  creditor 
B)  debtor 
C)  guarantor 
D)  facilitator

Question 12

An easement is a form of real property security given by a borrower to a lender.

Accepted Answer

A) True 
 B)False

Question 13

In a guaranty situation, there is only one contract among three parties.

Accepted Answer

A) True 
 B)False

Question 14

Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000. Chelsea pays him $100,000 and moves in. A month later, Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing. Which of the following options does either party have now?

Accepted Answer

A)  Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B)  The contract cannot be rescinded by either party as it has already been executed. 
C)  Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D)  Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
A)  Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B)  The contract cannot be rescinded by either party as it has already been executed. 
C)  Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D)  Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Question 15

In most states, contracts for the lease of goods with payments of $2000 require to be in writing.

Accepted Answer

A) True 
 B)False

Question 16

Any writing-including letters, telegrams, invoices, sales receipts, checks, and handwritten agreements written on scraps of paper-can be an enforceable contract.

Accepted Answer

A) True 
 B)False

Question 17

________ says that if a written contract is a complete and final statement of the parties' agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.

Accepted Answer

A)  Main purpose exception 
B)  Leading object exception 
C)  Parol evidence rule 
D)  Promissory estoppel 
A)  Main purpose exception 
B)  Leading object exception 
C)  Parol evidence rule 
D)  Promissory estoppel

Question 18

When is parol evidence admitted in court?

Accepted Answer

Parol evidence may be admitted in court

Question 19

Which of the following is considered a real property?

Accepted Answer

A)  a fixture permanently affixed to a building 
B)  fifty-one percent partnership in a firm 
C)  a club membership 
D)  diamond jewelry 
A)  a fixture permanently affixed to a building 
B)  fifty-one percent partnership in a firm 
C)  a club membership 
D)  diamond jewelry

Question 20

Which of the following statements is true of the Statute of Frauds?

Accepted Answer

A)  An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party. 
B)  Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded. 
C)  If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract. 
D)  Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing. 
A)  An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party. 
B)  Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded. 
C)  If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract. 
D)  Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing.

Exam 14: Statute of Frauds and Equitable Exceptions

A merger clause stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

A lease is an interest in real property given to a lender as security for the repayment of a loan.

Which of the following does the one-year rule state?

The doctrine of part performance is an exception to the Statute of Frauds' writing requirement that courts can apply in order to achieve justice in situations where it is not possible to return the parties to their status quo.

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Placing several documents in the same envelope indicates implied integration.

Section 2-201(1) of the Uniform Commercial Code (UCC) states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.

Which of the following is an instance of a mortgage?

The ________ states that an executory contract which cannot be performed by its own terms within one year of its formation must be in writing.

Nina wants to borrow money from Tina, but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot clear the debt. James agrees to pay the debt if Nina does not. James is the ________ in this transaction.

An easement is a form of real property security given by a borrower to a lender.

In a guaranty situation, there is only one contract among three parties.

In most states, contracts for the lease of goods with payments of $2000 require to be in writing.

Any writing-including letters, telegrams, invoices, sales receipts, checks, and handwritten agreements written on scraps of paper-can be an enforceable contract.

When is parol evidence admitted in court?

Which of the following is considered a real property?

Which of the following statements is true of the Statute of Frauds?

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