Question 1

Which of the following is true regarding what is considered an interest in land within the statute of frauds?

Accepted Answer

A)  Interests in land within the statute of frauds include promises to sell crops annually and agreements between parties for profit sharing from the sale of real property, but not boundary disputes that have been settled through the use of land. 
B)  Interests in land within the statute of frauds include promises to sell crops annually, but not agreements between parties for profit sharing from the sale of real property or boundary disputes that have been settled through the use of land. 
C)  Interests in land within the statute of frauds include boundary disputes that have been settled through the use of land, but not promises to sell crops annually or agreements between parties for profit sharing from the sale of real property. 
D)  Interests in land within the statute of frauds include boundary disputes that have been settled through the use of land and promises to sell crops annually, but not agreements between parties for profit sharing from the sale of real property. 
E)  Interests in land within the statute of frauds include promises to sell crops annually, agreements between parties for profit sharing from the sale of real property, and boundary disputes that have been settled through the use of land. 
A)  Interests in land within the statute of frauds include promises to sell crops annually and agreements between parties for profit sharing from the sale of real property, but not boundary disputes that have been settled through the use of land. 
B)  Interests in land within the statute of frauds include promises to sell crops annually, but not agreements between parties for profit sharing from the sale of real property or boundary disputes that have been settled through the use of land. 
C)  Interests in land within the statute of frauds include boundary disputes that have been settled through the use of land, but not promises to sell crops annually or agreements between parties for profit sharing from the sale of real property. 
D)  Interests in land within the statute of frauds include boundary disputes that have been settled through the use of land and promises to sell crops annually, but not agreements between parties for profit sharing from the sale of real property. 
E)  Interests in land within the statute of frauds include promises to sell crops annually, agreements between parties for profit sharing from the sale of real property, and boundary disputes that have been settled through the use of land. E

Question 2

Define the term "admission" in relation to contracts under the statute of frauds. Discuss the pros and cons of the rule on admissions, and whether you think courts should recognize admissions.

Accepted Answer

An admission is a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing. To the extent that the statute of frauds is intended to require proper evidence of agreements, the admission exception is well reasoned. However, to the extent that the statute is intended to encourage care and caution in establishing the specific details of agreements, the admission exception seems to unnecessarily punish honest parties while rewarding dishonest ones. Students will vary in opinions on whether courts should recognize admissions as an exception to the statute of frauds.

Question 3

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

Accepted Answer

A)  Secondary obligations 
B)  Primary promises 
C)  Primary debts 
D)  Third-party debts 
E)  Commercial promises 
A)  Secondary obligations 
B)  Primary promises 
C)  Primary debts 
D)  Third-party debts 
E)  Commercial promises A

Question 4

Under the Uniform Commercial Code, contracts for the sale of goods totaling more than ______ must be in writing.

Accepted Answer

A)  $200 
B)  $300 
C)  $500 
D)  $600 
E)  $1,000 
A)  $200 
B)  $300 
C)  $500 
D)  $600 
E)  $1,000

Question 5

Richard has insurance with ABC Insurer. Richard has a wreck with Susie. The adjuster for ABC Insurer orally agrees to pay Susie $1,000 for the damage to her car. The adjuster, however, gets in trouble with his boss for agreeing to pay too much. He tells Susie that he is backing out of the deal because the agreement is unenforceable on the basis that the statute of frauds requires that a contract to pay the debt of another be in writing. Is the adjuster correct? Why or why not?

Accepted Answer

The adjuster is not correct. The insurer

Question 6

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?

Accepted Answer

A)  Complete contracts 
B)  Integrated contracts 
C)  Adhesion contracts 
D)  Bilateral contracts 
E)  Acknowledged contracts 
A)  Complete contracts 
B)  Integrated contracts 
C)  Adhesion contracts 
D)  Bilateral contracts 
E)  Acknowledged contracts

Question 7

Sally has a large farm and significant other assets. She agreed to loan her nephew Todd $100,000 with payments of principle and interest to be made yearly. A few years later she and Todd got into a dispute because Sally did not like his new girlfriend, Polly. Soon thereafter Todd got notice that Sally was suing him for not paying interest on the note. Todd defended on the basis that two years after the initial loan agreement was entered into, he and Sally entered into an oral agreement that he would perform services on her farm in lieu of paying interest on the note. If the court follows the reasoning of the court in the Case Opener involving Monroe Bradstad and Jeanne Garland, which of the following is the most likely result of the dispute between Sally and Todd involving whether he owes past interest amounts?

Accepted Answer

A)  Todd will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing. 
B)  Todd will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement. 
C)  Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement. 
D)  Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement. 
E)  Assuming the court credits Todd's account of events, based on the parol evidence rule, Todd will be required to pay only 1/2 of the interest amounts. 
A)  Todd will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing. 
B)  Todd will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement. 
C)  Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement. 
D)  Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement. 
E)  Assuming the court credits Todd's account of events, based on the parol evidence rule, Todd will be required to pay only 1/2 of the interest amounts.

Question 8

Which of the following is false regarding written contracts?

Accepted Answer

A)  Disputes are easier to settle when contractual terms are solidified in writing. 
B)  The moment of writing allows both parties to reconsider terms and ensure what they desire. 
C)  In general, written contracts aid in the conduct of smooth business contracts. 
D)  The idea of requiring a writing comes from an English law. 
E)  All contracts must be in writing in order to be enforced. 
A)  Disputes are easier to settle when contractual terms are solidified in writing. 
B)  The moment of writing allows both parties to reconsider terms and ensure what they desire. 
C)  In general, written contracts aid in the conduct of smooth business contracts. 
D)  The idea of requiring a writing comes from an English law. 
E)  All contracts must be in writing in order to be enforced.

Question 9

Which of the following involves the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract?

Accepted Answer

A)  Promissory estoppel 
B)  Substantial estoppel 
C)  Promissory rule 
D)  Reliance rule 
E)  Promissory reliance 
A)  Promissory estoppel 
B)  Substantial estoppel 
C)  Promissory rule 
D)  Reliance rule 
E)  Promissory reliance

Question 10

The concept of performance has no effect on the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 11

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the error was indeed an error, as well as to set forth the proper term.

Accepted Answer

A) True 
 B)False

Question 12

In ______ the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

Accepted Answer

A)  1555 
B)  1677 
C)  1770 
D)  1776 
E)  1865 
A)  1555 
B)  1677 
C)  1770 
D)  1776 
E)  1865

Question 13

According to the text, what are the three main purposes of the statute of frauds?

Accepted Answer

First, the statute attempts to ease cont

Question 14

Brandy, the president of ABC Communication., and Sam orally agreed that Sam would work as a computer programmer for ABC Co. for a three-year period. Their oral agreement also covered other matters such as his pay and the availability of one week of paid vacation. On the day he talked with Brandy, Sam signed an employee handbook including a provision that his employment was at will, meaning that at any time he could quit or the company could discharge him. A month later, Sam received a three-year contract for employment with ABC Co. in the mail incorporating the amount of his salary and other issues he had discussed with Brandy. Sam signed it and mailed it back, but he changed the vacation provision to three weeks instead of one week. Bobby, the human resources manager for ABC Co., called Sam up after Bobby received the agreement and told Sam that the contract was only a draft for discussion purposes and that he was actually firing Sam because he seemed too focused on vacation. Assuming the court follows the reasoning of the court in the dispute discussed in the text involving Michael Gallagher and Medical Research Consultants, which of the following would be the most likely result in the dispute between Sam and ABC Co. if Sam claims he had a three-year contract of employment?

Accepted Answer

A)  ABC Co. will win because even if a three-year oral agreement for employment was made, it would not have been enforceable because the statute of frauds requires that agreements that cannot be completed within one year be in writing. Further, the draft Sam returned was not signed by ABC Co. 
B)  ABC Co. will win because although the three-year oral agreement for employment was initially enforceable, Sam reopened negotiations by altering the later contract to provide that he was to receive three weeks of vacation. 
C)  ABC Co. will win because as a matter of law, no other document can alter the provisions of an employee handbook. 
D)  A jury will decide if Brandy orally agreed to a three-year contract; and, if so, Sam gets his job back along with the extra weeks of vacation. 
E)  As a matter of law, since the contract was sent to Sam, he received a guarantee of employment for three years; but he does not get the extra weeks of vacation he inserted. 
A)  ABC Co. will win because even if a three-year oral agreement for employment was made, it would not have been enforceable because the statute of frauds requires that agreements that cannot be completed within one year be in writing. Further, the draft Sam returned was not signed by ABC Co. 
B)  ABC Co. will win because although the three-year oral agreement for employment was initially enforceable, Sam reopened negotiations by altering the later contract to provide that he was to receive three weeks of vacation. 
C)  ABC Co. will win because as a matter of law, no other document can alter the provisions of an employee handbook. 
D)  A jury will decide if Brandy orally agreed to a three-year contract; and, if so, Sam gets his job back along with the extra weeks of vacation. 
E)  As a matter of law, since the contract was sent to Sam, he received a guarantee of employment for three years; but he does not get the extra weeks of vacation he inserted.

Question 15

Within the statute of frauds, "land" encompasses not only the land and soil itself but anything ______ to the land.

Accepted Answer

A)  Relating 
B)  Adjacent 
C)  Contracted 
D)  Attached 
E)  Pertinent 
A)  Relating 
B)  Adjacent 
C)  Contracted 
D)  Attached 
E)  Pertinent

Question 16

When a court deems a contract integrated, parol evidence is admissible.

Accepted Answer

A) True 
 B)False

Question 17

When may a court rule find parol evidence admissible to further the court's understanding of an agreement?

Accepted Answer

A)  When a court determines that there is significant disagreement regarding the complete and final version of the agreement. 
B)  When a court determines that a written agreement does not represent a complete and final version of the agreement. 
C)  When a court determines that there is disagreement between the parties over performance of the agreement once performance has actually started. 
D)  When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable. 
E)  When a court determines that either party failed to do sufficient research to determine if signing the agreement was advisable. 
A)  When a court determines that there is significant disagreement regarding the complete and final version of the agreement. 
B)  When a court determines that a written agreement does not represent a complete and final version of the agreement. 
C)  When a court determines that there is disagreement between the parties over performance of the agreement once performance has actually started. 
D)  When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable. 
E)  When a court determines that either party failed to do sufficient research to determine if signing the agreement was advisable.

Question 18

As discussed in the text, a main purpose of the statute of frauds is to prevent unreliable _____ evidence from interfering with a contractual relationship.

Accepted Answer

A)  Hearsay 
B)  Oral 
C)  Irrelevant 
D)  Immaterial 
E)  Inconclusive 
A)  Hearsay 
B)  Oral 
C)  Irrelevant 
D)  Immaterial 
E)  Inconclusive

Question 19

Which of the following is a type of contract that does not fall within the scope of the statute of frauds?

Accepted Answer

A)  Contracts related to an interest in land 
B)  Promises made in consideration of marriage 
C)  Contracts related to any lease of land or equipment 
D)  Contracts whose terms prevent possible performance within one year 
E)  Contracts for one party to pay the debt of another if the initial party fails to pay 
A)  Contracts related to an interest in land 
B)  Promises made in consideration of marriage 
C)  Contracts related to any lease of land or equipment 
D)  Contracts whose terms prevent possible performance within one year 
E)  Contracts for one party to pay the debt of another if the initial party fails to pay

Question 20

Which of the following is true regarding writings created at the same time as a written agreement?

Accepted Answer

A)  Although the parol evidence rule applies to writings created at the same time as the written agreement, these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are more readily admitted as part of the written agreement than is oral evidence. 
B)  Although the parol evidence rule applies to writings created at the same time as the written agreement, these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are less likely to be admitted as part of the written agreement than is oral evidence. 
C)  The parol evidence rule applies to writings created at the same time as the written agreement, and these writings are analyzed in the same way as prior or contemporaneous oral evidence. 
D)  The parol evidence rule applies to writings created at the same time as the written agreement only if a sale of goods is involved, and in that case the writings are analyzed in the same way as prior or contemporaneous oral evidence. 
E)  The parol evidence rule does not apply to writings created at the same time as the written agreement. 
A)  Although the parol evidence rule applies to writings created at the same time as the written agreement, these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are more readily admitted as part of the written agreement than is oral evidence. 
B)  Although the parol evidence rule applies to writings created at the same time as the written agreement, these writings tend to be treated differently than prior or contemporaneous oral agreements in that the writings are less likely to be admitted as part of the written agreement than is oral evidence. 
C)  The parol evidence rule applies to writings created at the same time as the written agreement, and these writings are analyzed in the same way as prior or contemporaneous oral evidence. 
D)  The parol evidence rule applies to writings created at the same time as the written agreement only if a sale of goods is involved, and in that case the writings are analyzed in the same way as prior or contemporaneous oral evidence. 
E)  The parol evidence rule does not apply to writings created at the same time as the written agreement.

Exam 18: Contracts in Writing

Which of the following is true regarding what is considered an interest in land within the statute of frauds?

Define the term "admission" in relation to contracts under the statute of frauds. Discuss the pros and cons of the rule on admissions, and whether you think courts should recognize admissions.

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

Under the Uniform Commercial Code, contracts for the sale of goods totaling more than ______ must be in writing.

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?

Which of the following is false regarding written contracts?

Which of the following involves the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract?

The concept of performance has no effect on the statute of frauds.

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the error was indeed an error, as well as to set forth the proper term.

In ______ the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

According to the text, what are the three main purposes of the statute of frauds?

Within the statute of frauds, "land" encompasses not only the land and soil itself but anything ______ to the land.

When a court deems a contract integrated, parol evidence is admissible.

When may a court rule find parol evidence admissible to further the court's understanding of an agreement?

As discussed in the text, a main purpose of the statute of frauds is to prevent unreliable _____ evidence from interfering with a contractual relationship.

Which of the following is a type of contract that does not fall within the scope of the statute of frauds?

Which of the following is true regarding writings created at the same time as a written agreement?

An Introduction to Dynamic Business Law

Business Ethics

The US Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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