Deck 11: Memorialize Contracts in Writingstatute of Frauds

Question 1

An executor's written promise to pay a deceased person's debts out of personal funds is valid.

Answer 1

True

Question 2

Important contracts should be in writing to reduce the possibility of perjury by either party.

Answer 2

True

Question 3

Parol evidence may be presented to show that a written contract did not include all the important terms.

Answer 3

False

Question 4

A contract for the sale of $400 worth of merchandise must be in writing.

Question 5

The evidence needed to satisfy the statute of frauds may be an informal memorandum.

Question 6

Oral contracts

A) are unenforceable.
B) are just as valid as written contracts.
C) for the sale of real property are valid.
D) are easier to prove in court than are written contracts.

Question 7

One example of a contract that must be in writing is a contract to

A) rent an apartment for six months.
B) care for someone for the rest of her or his life.
C) purchase a computer for $350.
D) pay a friend's debts.

Question 8

An executor or administrator is one who handles a deceased person's estate.

Question 9

A written contract needs at least one witness to establish its existence and its terms.

Question 10

The statute of frauds applies only to executory contracts.

Question 11

The statute of frauds

A) applies only to executed contracts.
B) requires certain contracts to be in writing.
C) states that written contracts cannot be changed by oral evidence.
D) none of these.

Question 12

A term not included in a written contract is considered intentionally omitted.

Question 13

The statute of frauds does not apply to agreements in which one person assumes primary responsibility for the payment of a debt.

Question 14

All states have a law that requires certain contracts to be in writing.

Question 15

Today, under modern law, no contract or signature may be denied legal effect solely because it is in electronic form.

Question 16

Miller said to Avid, a retail merchant, "Deliver this $1,500 computer to my nephew Ronald McDonald and send the bill to me." Avid did as he was requested, but Miller refused to pay the bill, claiming that the nephew was really not interested in using the computer. Is Miller liable?

A) Yes; an oral promise to pay one's own debt is binding.
B) Yes; an oral promise to pay the debt of another is binding.
C) No; an oral promise to pay the debt of another is not binding.
D) No; there was no consideration for the oral promise.

Question 17

If a contract can be carried out within one year, it need not be in writing.

Question 18

Parol evidence is admissible to show changes after the written contract was made.

Question 19

The agreement required by the statute of frauds must be signed by both parties.

Question 20

Under the provisions of the statute of frauds, one example of a contract that does not have to be in writing to be enforceable is a(n)

A) promise to pay the debts of another living person.
B) agreement for the transfer of ownership in real property.
C) agreement to rent real property for one year or less.
D) agreement for the sale of merchandise valued at $700.

Question 21

April, who was married before and plans to marry again, can protect the inheritance rights of her two children by

A) entering into a prenuptial agreement with her intended spouse prior to the marriage.
B) asking her intended spouse to make an oral promise to allow her two children to inherit as if she (April) were not married.
C) notifying her attorney of her intentions to remarry.
D) doing nothing.

Question 22

Atad orally contracts to support his aunt until her death. In most states this contract is

A) unenforceable.
B) illegal.
C) valid.
D) unconscionable.

Question 23

A contract in consideration of marriage is necessary only if the promise to marry is other than a(n) ____________________ promise

Question 24

Mangin agreed to sell and Restov agreed to buy a small strip of land adjoining Restov's property. This agreement would be binding if made

A) through an exchange of telephone conversations.
B) through an exchange of letters.
C) orally with a small down payment.
D) orally before two witnesses.

Question 25

The kind of signature required to satisfy the statute of frauds must be

A) handwritten.
B) typed.
C) printed.
D) all of these.

Question 26

Which of the following is not an exception to the parol evidence rule?

A) When the written contract contains all the terms and provisions intended by the parties
B) When parol evidence is introduced in court to explain vague or confusing terms
C) When parol evidence is introduced in court to prove that the written contract lacked certain terms that were originally agreed upon but were accidentally left out of the written contract
D) When parol evidence is introduced in court to show that the contract is illegal

Question 27

The ____________________ keeps oral testimony from being introduced to add, to alter, or vary the terms of a written contract.

Question 28

A contract to answer for the debt of another person is called a

A) contract of adhesion.
B) prenuptial agreement.
C) contract of guaranty.
D) parol contract.

Question 29

The parol evidence rule

A) serves the same purpose as the statute of frauds.
B) applies if all dealings between the parties are oral.
C) allows parties to introduce evidence to change the terms of a written contract.
D) none of these.

Question 30

Most contracts are made ____________________.

Question 31

The statute of frauds applies only to

A) executed contracts.
B) executory contracts.
C) informal contracts.
D) formal contracts.

Question 32

Jamison orally contracts to sell her house to Fagan. Later, Jamison changes her mind and refuses to transfer the property. Fagan cannot take legal action against Jamison because the contract is ____________________.

Question 33

Candice, who owned a retail dry-cleaning establishment, planned a trip to Florida for health reasons. On March 13 she orally agreed to hire Myron for one year to manage her business while she was away. Myron was to manage the establishment from May 1 of that year to April 30 of the next year. Which of the following statements is correct?

A) The statute of frauds does not apply to this situation.
B) The statute of frauds does apply to this situation.
C) This agreement is void.
D) This agreement is voidable.

Question 34

Martinson entered into a contract to purchase a used fax machine from Gruber for $550. Martinson, who did not sign the agreement, changed his mind and refused to buy the fax machine from Gruber. Can Gruber legally enforce the contract?

A) No; the sale was for less than $600.
B) No; Martinson did not sign the contract.
C) Yes; Gruber signed the contract.
D) Yes; the sale contained all the elements of a contract.

Question 35

A memorandum required to satisfy the statute of frauds should contain

A) the names of the parties.
B) the subject matter of the agreement.
C) the consideration involved.
D) all of these.

Question 36

A written contract or memorandum must be signed by

A) both parties.
B) either party.
C) the party to be held liable.
D) the party bringing suit.

Question 37

The statute of frauds requires a written agreement for sales of merchandise costing

A) $250 or more.
B) $400 or more.
C) $500 or more
D) over $750.

Question 38

If the contract put in writing is intended to be the final and complete agreement between the parties then it is considered as a(n) ____________________contract.

Question 39

The key to determining whether a contract is enforceable under the one-year rule of the statute of frauds is the answer to which of the following questions?

A) Is it possible to carry out the terms of the contract within one year of the date of the agreement?
B) Is it likely that the parties will carry out the terms of the contract within one year of the date of the agreement?
C) Is it reasonable to expect that the parties will carry out the terms of the contract within one year of the date of the agreement?
D) Do the parties wish to carry out the terms of the contract within one year from the date that the contract will actually begin?

Question 40

Reba was appointed as administrator of her father's estate. She orally promised Mintz, a creditor of the estate, that if there were inadequate funds in the estate, she (Reba) would pay the debt from her personal funds. To be enforceable, the agreement must be

A) in writing.
B) for debts over $500.
C) for debts for personal property only.
D) for a period of less than one year.

Question 41

What is an e-signature? Is the e-signature an acceptable form of signature in the business world?

Question 42

For a writing to satisfy the statute of frauds, it need only be signed by the party against whom it is to be ____________________.

Question 43

The statute of frauds covers ____________________[a number] major categories of contracts.

Question 44

A(n) ____________________ is an agreement by which an owner of real property rents that property to another party.

Question 45

Hill told Tompkins, "Sell Martin a suit of clothes, and charge it to me." Tompkins sold the suit to Martin and sent the bill to Hill. Hill refused to pay, pleading the statute of frauds as his defense. Is Hill liable?

Question 46

The ____________________ signature was invented to accommodate electronic commerce.

Question 47

Under what circumstances can the parol evidence rule be disregarded?

Question 48

At the very least, what must be included in the written memorandum in order for it to satisfy the statute of frauds?

Question 49

Sargent orally agreed to purchase a piece of land from Babson. To confirm the agreement, Sargent wrote a letter to Babson that contained all the terms of the transaction and was signed by Sargent. When Babson refused to sell, Sargent sued for breach of contract, claiming that the sale was in writing. Is Sargent correct?

Question 50

A subsequent oral agreement modifying a written contract must be in writing if the written contract originally had to be ____________________.