Deck 9: The Requirement of Writing

Question 1

Use the fact situation in Q15 to answer the related question that follows. Review Fact Situations 1 and 2.What is the difference between them?

A)In Fact Situation 1,John's performance is strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is not strictly referable to Dick's farm.
B)In Fact Situation 1,the essential terms of the agreement are not present,but they are present in Fact Situation 2.
C)In Fact Situation 1,John's performance is not strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is strictly referable to Dick's farm.
D)In Fact Situation 1,all of the essential terms of the agreement are present,but they are not present in Fact Situation 2.
E)There is no difference between the two fact situations.

Answer 1

A

Question 2

It is good business practice of have a written record of a contract because

A)provisions of long-term contracts will not have to be committed to memory.
B)many disputes can be avoided by keeping an accurate record.
C)a written record is more accurate than human memory.
D)human memory is fallible.
E)all of the above

Answer 2

E

Question 3

Under the Statute of Frauds,a "promise to answer for the miscarriage of another" has been interpreted to mean

A)a promise to pay for goods not paid for by a purchaser.
B)a promise to pay for the injury caused by the tort of another.
C)a promise to perform a contract that has been breached by another.
D)a promise to pay for the injury caused by the tort of another and a promise to perform a contract that has been breached by another.
E)a promise to settle a debt owed by another.

Answer 3

B

Question 4

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "I shall pay the debt of my brother." This statement is

A)a promise of indemnity.
B)a promise of guarantee.
C)a misrepresentation.
D)a promise of guarantee and indemnity.
E)a representation.

Question 5

Allan and Nora enter into an oral agreement for the sale of Allan's land to Nora for a price to be decided on later,and Allan sends Nora a written memorandum setting this out.In the memorandum Allan goes on to state that settling on the price of the land is very important.In a lawsuit by Nora to get the land,

A)Nora will succeed on a quantum meruit basis.
B)Nora will not succeed since the memorandum is not sufficient compliance with the Statute of Frauds.
C)Nora will not succeed since the essential terms of the contract are not present.
D)Nora will succeed since the essential terms of the contract are present.
E)Nora will succeed since the memorandum is sufficient compliance with the Statute of Frauds.

Question 6

The Statute of Frauds

A)requires that contracts with minors be in writing.
B)prevents contracts with minors.
C)renders unenforceable certain types of contracts unless they are in writing.
D)is an English law that does not apply in Canada.
E)renders unenforceable contracts with minors.

Question 7

The phrase "no action shall be brought" in the Statute of Frauds applies to procedure and not validity.This means that

A)a party can bring a legal action,but only if a new contract is proven to supersede the original.
B)a party cannot bring a legal action,since the contract is void.
C)a party cannot bring a legal action,because the Statute affects the validity of the contract.
D)although no action may be brought on the contract itself,the contract may still affect the legal relations between the parties in several ways.
E)a party cannot bring a legal action at all because one or more of the essential terms of the contract are missing.

Question 8

John orally agrees to sell his land to Mary for $50 000.00,and Mary gives John a deposit of $15 000.00.The agreement is to close (be completed)in 30 days.Two days later,John gives Mary a note saying,"I know that you are buying the land to develop it." Five days after this,John tells Mary he has changed his mind and refuses to sell her the land,and Mary accepts this.In a lawsuit by Mary to recover her deposit,

A)the deposit will be recoverable on the basis of a total failure of consideration.
B)the deposit will not be recoverable because the time for completion has not yet occurred.
C)the deposit will not be recoverable because the agreement is not in writing.
D)the deposit will be recoverable because Mary has done nothing wrong.
E)none of the above

Question 9

A guarantee is

A)a promise to be primarily liable for the debt of a debtor.
B)a promise to enter into an agreement when a debtor defaults.
C)a promise to pay only if the debtor defaults.
D)a promise to purchase goods.
E)a promise to add one's signature to a legal document.

Question 10

Edward and his wife,Mary,go into a bank.Edward wants to loan $10 000.00 from the bank,but the bank manager wants some kind of security.Because they are in a hurry,Mary says,"Give Edward the money and I will pay Edward's loan." The bank manager looks at her and,being afraid that the bank will not loan Edward the money,Mary says,"Please,if Edward does not pay the loan,I will." The bank manager has Mary sign a document with both of her statements in it.In this situation,

A)Mary is an indemnifier.
B)Mary has indemnified the loan to the bank.
C)Mary is a guarantor of Edward.
D)Mary has guaranteed the loan to the bank.
E)all of the above

Question 11

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "If my brother is unable to pay,I shall make payment." Susan's statement is

A)a representation.
B)a promise of guarantee.
C)a promise of indemnity and a promise of guarantee.
D)a promise of indemnity.
E)a misrepresentation.

Question 12

The form of contract includes

A)contracts whose terms are entirely in writing in several documents.
B)contracts whose terms are entirely oral.
C)contracts whose terms are entirely in writing in one document.
D)contracts whose terms are both oral and in writing.
E)all of the above

Question 13

A distinction must always be drawn between the substance of a contract and its

A)parties.
B)benefits.
C)principles.
D)form.
E)beneficiaries.

Question 14

The substance of a contract may have a variety of

A)statutes.
B)forms.
C)parties.
D)attributes.
E)beneficiaries.

Question 15

Use these fact situations to answer the related questions that follow. Fact Situation 1:
John is the 20-year-old nephew of Mary,who is 80 years of age and unable to get around or do things herself.Mary owns two properties in Toronto: 121 Thornton Lane and 122 Thornton Lane.Mary,who lives at 121 Thornton Lane,orally agrees with John that if he is good to her and does whatever services for her that she asks him to do from time to time during the rest of her life,she will leave John 121 Thornton Lane.John does not live with Mary,but does a number of things that Mary asks him to do,including taking her on trips,doing some errands,and also doing some odd jobs for both properties over the course of a year,after which Mary dies without leaving John 121 Thornton Lane.Now John sues her estate to get the house.
Fact Situation 2:
In 1921 Gus met Dick,and in the spring of 1922 Gus went to work for Dick as a farm labourer.For the first two years after that,Gus was paid $50.00 a month,plus room and board and meals.In 1924,Dick was in an accident and became disabled.Although Dick could not pay Gus wages,he promised to leave Gus his farm after he died if Gus stayed and worked the land.From 1924 on,Gus,who often considered leaving Dick's farm and had ample opportunity to do so,stayed and worked the farm on Dick's continued promise that if he stayed and worked the farm,the farm would be his after Dick's death.During this time Gus planted the fields,decided on what crops to plant,did repairs to Dick's house,and on Dick's behalf purchased livestock and then took care of it.Dick died in 1930 before he had a chance to make a will leaving Gus the land.
In Fact Situation 1,if John sues Mary's estate to get the house,

A)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties are immaterial because the contract was one of services for an indefinite period,so he will succeed.
B)the agreement between John and Mary is one for a period of a year and John cannot succeed.
C)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties come within the doctrine of part performance and John will succeed.
D)the agreement between John and Mary contains all the essential terms necessary to create a binding agreement that does not come within the Statute of Frauds,so John will succeed.
E)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties do not come within the doctrine of part performance and John will not succeed.

Question 16

A enters into an oral contract under which A is to sell his land to B,and B gives A a deposit of $100 000.00.B now changes his mind and wants his deposit back from A.In an action by B to recover the deposit,

A)A can raise the validity of the agreement as a defence to B's action.
B)A cannot use the validity of the agreement as a defence to B's action.
C)A cannot use the validity of the agreement as a defence to B's action because the agreement is unenforceable.
D)B cannot sue A at all because the contract is unenforceable to B's action.
E)none of the above

Question 17

Happy Go Lucky Company (HGLC)enters into an oral employment agreement with Albert under which Albert becomes the managing director of HGLC for a period of two years.The employment agreement provides that both Albert and HGLC have the right to terminate the contract on six months' notice to the other.After working for the company for eight months,HGLC gives Albert two months' notice of termination.In this situation,

A)the Statute of Frauds does not apply because the essential terms of the contract are present,so Albert can enforce the term that he be given six months' notice.
B)the Statute of Frauds applies,because there has not been part performance by Albert,so Albert cannot enforce the term that he be given six months' notice.
C)the Statute of Frauds does not apply,because the contract is one for an indefinite period,so Albert can enforce the term that he be given six months' notice.
D)the Statute of Frauds applies,because the contract extends over a period of more than a year,so Albert cannot enforce the term that he be given six months' notice.
E)none of the above

Question 18

It has often been said that by defeating the reasonable expectation of the parties,the Statute of Frauds promotes

A)certainty and predictability.
B)more frauds than it prevents.
C)guarantees and indemnities.
D)good faith bargaining.
E)binding contractual relations.

Question 19

Use the fact situation in Q15 to answer the related question that follows. In Fact Situation 2,in a lawsuit by Gus to get ownership of the land,

A)Gus will succeed by virtue of the doctrine of part performance.
B)Gus will not succeed because the agreement between Dick and Gus is unenforceable under the Statute of Frauds.
C)Gus will not succeed because the agreement between Dick and Gus is void under the Statute of Frauds.
D)Gus will not succeed,but will be entitled to a quantum meruit claim for the work and services he did for Dick.
E)the agreement between Dick and Gus does not contain all the essential terms necessary to create a binding agreement.

Question 20

When dealing with the prohibition in the Statute of Frauds regarding oral contracts not to be performed in a year,which of the following is true?

A)An oral contract that is for an indefinite period,but could be performed within a year,is not prohibited by the Statute.
B)An oral contract that is to be performed over a period of one year,commencing the day after the formation of the contract,is not prohibited by the Statute.
C)An oral contract that is to be performed over a period of one year,but commences two days after the conclusion of the contract,is prohibited by the Statute.
D)An oral contract that provides for a specific period for performance of more than a year,but also confers a power of determination that may be exercised within the year,is prohibited by the Statute.
E)all of the above

Question 21

In respect of a contract to which the Statute of Frauds applies,which of the following is NOT true?

A)Both parties must sign the contract.
B)The essential elements of the contract must be in writing.
C)The defendant must sign the contract.
D)The contract must be under seal.
E)Both A and D are not true.

Question 22

Which of the following is true with regard to a contract that has to be in writing?

A)If the contract is handwritten,it must be in ink.
B)All implied terms must be carefully identified.
C)If the contract is a guarantee,consideration must be identified.
D)The parties must meet to discuss the terms.
E)The contract does not have to be wholly within a single document.Several written notes may be taken together to satisfy the Statute of Frauds.

Question 23

Under the Statute of Frauds,a promise of indemnity and a promise of guarantee must be in writing to be enforceable.

Question 24

A guarantee to be enforceable must be in writing; however,a promise of indemnity does not have to be in writing to be enforceable.

Question 25

When we say that a contract is unenforceable under the Statute of Frauds,we mean that there never was a contract at all.

Question 26

Acceptance under the Sale of Goods Act means

A)an unconditional willingness to enter into an agreement with the seller on terms specified.
B)conduct by the buyer to accept the offer made by the seller.
C)accepting the goods.
D)accepting the terms of the contract of sale.
E)any conduct by the buyer in relation to the goods that amounts to a recognition of the existence of a contract.

Question 27

Which of the following is true about consumer protection statutes?

A)Provincial legislation is not as encompassing as federal legislation.
B)The federal government believes there is the need to be a big brother upon which one can call.
C)It covers businesses as well as consumers.
D)It only addresses the buying and selling of goods.
E)It is concerned with only one party to the contract,the purchaser.

Question 28

A contract that is unenforceable under the Statute of Frauds may be saved by a subsequent written memorandum.

Question 29

At common law,once the terms of a contract are determined,it is irrelevant that it is only a verbal contract.

Question 30

The Statute of Frauds requires that contracts with minors must be in writing.

Question 31

Mary tells John,"I shall pay the debt my sister owes you." This statement is a promise of guarantee.

Question 32

When a contract is oral,the first task of a court is to determine what the parties agreed to.

Question 33

Which of the following is NOT one of the kinds of conduct that must be established by a party who seeks to enforce an agreement,under the Sale of Goods Act,that is not in writing?

A)the provision of consideration
B)acceptance by the buyer
C)actual receipt of the goods by the buyer
D)part payment tendered by the buyer and accepted by the seller
E)something by way of earnest given by the buyer to the seller

Question 34

An unenforceable contract is a void contract.

Question 35

One Ontario Consumer Protection Act provision prohibits a motor vehicle repairer from charging for work unless an estimate meeting the prescribed requirements has been given or waived.

Question 36

The essential elements of a contract that must be in a written memorandum are the parties and the price.

Question 37

When a contract is wholly oral,the first problem of the court is

A)to determine the liberal meaning of the words.
B)to speak to the parties.
C)to read the contract.
D)to determine the dictionary meaning of the provisions.
E)to determine what exactly the parties agreed to.

Question 38

An oral contract concerning land will always be unenforceable under the Statute of Frauds.

Question 39

A written document can contain both a guarantee and an indemnity.

Question 40

The doctrine of part performance as it relates to the Statute of Frauds means that

A)if the plaintiff can show that it has partly performed a contract,then the defendant will have to pay for the portion of the contract performed.
B)a defendant who partly performs an oral contract is entitled to enforce the oral contract.
C)if a plaintiff can show that he or she has partly performed an oral contract concerning land in reliance on the contract,the court will accept the part performance as evidence of the contract in place of the written contract.
D)a plaintiff who partly performs an oral contract is entitled to rely on such performance as evidence of the contract.
E)if a plaintiff can show that he or she has performed part of any oral contract,the court will accept such part performance as evidence of the contract in place of the written contract.

Question 41

What is the difference between a promise of guarantee and a promise of indemnity?

Question 42

Explain the doctrine of part performance in the context of the Statute of Frauds.

Question 43

An oral contract determined to be unenforceable pursuant to the Statute of Frauds is void.

Question 44

What are the essential elements of a written memorandum?

Question 45

A and B are negotiating a contract under which,if it is concluded,B will purchase A's land.A sends a fax to B stating,"I will sell you the 40 acres of land that I own at 1234 Concession Road 2,County of Simcoe for $100 000.00." B faxes the following response: "I can't pay $100 000.00.Will you take $92 000.00?" On receiving this fax,A responds by saying,"$92 000.00 is the lowest that I can go." After thinking about it for a time,B faxes back to A saying,"I'll pay the $92 000.00,but I want you to throw in your harvester machine." A then responds by fax,which says,"Done.But maybe we should put the agreement in writing." No further response is forthcoming from B and the agreement is never put into a formal written document.A few days later,B bumps into A and says,"I'm getting the money to pay you for your farm." To which A replies,"Oh,I changed my mind,and since we don't have written contract,the deal is off." In this situation,what will both A and B argue,and who is most likely to succeed?

Question 46

Regardless of the legal requirements,what are the practical advantages of a written record?

Question 47

Explain how an oral contract that is unenforceable because it is not in writing,may still affect the relationship between the parties.

Question 48

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

Question 49

What is the doctrine of part performance?

Question 50

Generally speaking,in what three situations will the question of the applicability of the Statute of Frauds arise?

Question 51

In what way does the Sale of Goods Act differ from the Statute of Frauds where there is no written contract?

Question 52

Consumer protection statutes address the form and content of consumer contracts relating to goods only.

Question 53

Distinguish between a promise of guarantee and a promise of indemnity.

Question 54

Why would the Statute of Frauds apply to an agreement to lease an apartment but not to a contract to renovate an apartment?