Deck 15: Contracts in Writing

Question 1

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Answer 1

False

Question 2

Bob sends Fred a letter offering to sell Fred his car for $2,500.Fred writes back that he'll take it.They now must get together and write a memorandum because it is a sale of goods for over $500.

Answer 2

False

Question 3

The statute of frauds generally requires that both parties sign the writing.

Answer 3

False

Question 4

A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

Question 5

In an employment agreement with Karl, Arnold promises to work for Karl for the rest of his life.This promise must be in writing to be enforceable.

Question 6

The word "parol" literally means release.

Question 7

The UCC requires that all contracts for the sale of goods must be in writing.

Question 8

Most types of contracts are valid without being written.

Question 9

Yukino pays $500 toward the purchase of a boat from Tyler.Although their agreement for the sale of the boat for
$2,200 is oral, courts agree that her part payment and its acceptance by Tyler make the contract enforceable.

Question 10

Most courts consider a merger clause to be conclusive proof of an integrated contract.

Question 11

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Question 12

The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term
"serrated."

Question 13

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

Question 14

Jim promises to marry Cynda if she will buy him a new Ferrari for his birthday.This promise must be in writing to be enforceable.

Question 15

The statute of frauds has to do with fraud in the inducement of a contract.

Question 16

The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.

Question 17

Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds.At the end of the letter, she types her name but does not sign her signature to it.If David wants to use the letter to satisfy the writing requirement, he may do so.

Question 18

The parol evidence rule only applies to written contracts.

Question 19

A usage of trade is a practice or method of dealing, regularly observed and followed in a place, vocation, or trade.

Question 20

The parol evidence rule is an exclusionary rule of evidence.

Question 21

The parol evidence rule applies to partially written agreements.

Question 22

The test under the one-year provision of the statute of frauds is based on the likelihood that the contract will be completed within one year.

Question 23

To satisfy the statute of frauds, the person who wants to bring the lawsuit must sign a memorandum.

Question 24

Brent loans Manuel $1,600 on his oral promise to repay the loan in three annual installments.Most courts would hold
Manuel's promise is unenforceable under the one­year provision of the statute of frauds.

Question 25

The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

Question 26

In interpreting a contract, terms which have been separately negotiated are given priority over standardized, pre- printed terms.

Question 27

The English statute of frauds and the Code's provision differ in language but have the same basic legal effect: an
oral contract for certain identified situations is void.

Question 28

The main purpose doctrine is an exception developed by the courts to the suretyship provision.

Question 29

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

Question 30

A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the benefits conferred on the other party in reliance on the unenforceable contract.

Question 31

The statute of frauds does not prevent the performance of oral contracts if the parties are willing to perform.

Question 32

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

Question 33

On March 20, Gordon orally agrees to work for Carrham, Inc.for a period of one year commencing on June 1.No writing is necessary here, because the contract can be performed within one year.

Question 34

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Question 35

In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership.Mary's promise must be in writing or have a sufficient electronic record.

Question 36

The test under the one-year provision of the statute of frauds is whether the terms of the contract make it possible for performance to occur within one year.

Question 37

When a court interprets an ambiguous contract, usage of the trade will take precedence over express terms in the contract.

Question 38

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement to be in writing.

Question 39

Although a contract to purchase an undeveloped lot must be in writing to be enforceable, a contract to run power lines over someone else's lot need not be.

Question 40

ABC Corp.is building a new office tower.Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building.ABC promises Ace that it will pay for the materials if the subcontractor does not.ABC's promise is unenforceable unless in writing.

Question 41

Which of the following promises does not have to be evidenced by writing in order to be enforceable?

A)Jones' agreement with Smith to sell his condominium for $100,000
B)Stewart's promise to work for Austin for a two-year period
C)Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay
D)Mindy's agreement with Susan to buy her bike for $400

Question 42

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?

A)An unborn puppy whose mother is an AKC champion
B)Trees that will be cut from a ten-acre tree farm
C)Food served in the banquet room of a Florida resort
D)Medical care received in a hospital

Question 43

The suretyship provision has been interpreted to include promises made to a debtor.

Question 44

The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing or proper electronic form.

Question 45

In determining the meaning of a contract under the UCC, which of the following will have first priority?

A)Course of performance
B)Course of dealing
C)Usage of trade
D)Express terms

Question 46

Which of the following would NOT require a writing under the statute of frauds?

A)Where the buyer of a five-acre lot pays the $40,000 purchase price, thus fully performing his obligation
B)Where a renter agrees to rent a building for a 5-year period
C)Where a contractor enters into an agreement for an easement across adjoining land to run cables
D)Where a landscaper agrees to landscape the lot surrounding an office building

Question 47

In states that have adopted it, the UETA:

A)encourages and gives full effect to electronic contracts.
B)gives full effect to emergency transactions.
C)supplements and covers all of the UCC.
D)covers wills, codicils, and testamentary trusts.

Question 48

The executor-administrator provision applies to promises of an executor of a decedent's will to the decedent's creditors.

Question 49

The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin.

Question 50

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2010, and that it is an integrated document.

A)A letter dated July 9, 2010, reciting agreement to new delivery terms
B)A chart showing the dates for delivery written on August 16, 2009
C)A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2010 contract
D)A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2006

Question 51

E-Sign:

A)preempts the Uniform Electronic Transactions Act.
B)requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment.
C)defines the included transactions narrowly.
D)ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

Question 52

What is another name for the main purpose doctrine?

A)The collateral promise rule
B)The possibility test
C)The leading object rule
D)The suretyship provision

Question 53

The UETA has been adopted by all of the states to give full effect to emergency transactions.

Question 54

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement?

A)The names of the parties to the contract
B)The signature of the party being sued
C)The signature of the party suing
D)The subject matter and essential terms of the unperformed promises

Question 55

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater.He doesn't recall placing the order.Which of the following is correct?

A)Wyandott can hold Chris to the order.
B)Chris can hold Wyandott to the order.
C)Neither party is bound, because there is no signed writing.
D)Chris is bound if he makes no objection within 10 days.

Question 56

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?

A)Prior oral or written agreements
B)Contemporaneous oral or written agreements
C)Subsequent oral or written agreements modifying the original agreement
D)None of these.

Question 57

Brightstone Co.and Allsale Co.enter an oral contract providing Allsale will provide 100 dozen toys at $50 per dozen to Brightstone.Brightstone faxes a letter to Allsale acknowledging the agreement, but stating only the quantity, not the price.Allsale:

A)cannot raise the defense of the statute of frauds if Allsale did not object to the letter within ten days after receiving it.
B)cannot raise the defense of the statute of frauds since it is a merchant.
C)can raise the defense of the statute of frauds since the oral agreement was for the sale of goods with a price of $500 or more.
D)can raise the defense of the statute of frauds since the writing did not contain all the material terms of the agreement.

Question 58

E-Sign provides consumers must:

A)evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required.
B)receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records.
C)receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form.
D)All of these.

Question 59

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable?

A)Contracts to make wills.
B)Contracts for the sale of securities.
C)Contracts for the sale of personal property for more than $5,000.
D)Contracts creating certain types of security interests.
E)All of these.

Question 60

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

A)A collateral promise made to the creditor
B)A promise, the leading object of which is to obtain an economic benefit for oneself
C)A collateral promise where there are three parties and two contracts involved
D)A promise by an executor to pay the debts of the decedent from the executor's own funds

Question 61

Richard agrees to supply Henry with all his needs of specially made shampoo for Henry's beauty salon.Henry believes that Richard is a representative of a famous hair products company, but he finds a letter to a competitor written by Richard two days before the agreement is signed proving that Richard is a fraud.Richard says that this letter may not be admitted to court since the contract is wholly integrated.Is he correct?

Question 62

Sam, a shopkeeper, dies unexpectedly at the age of 46.His lifelong business associate, Paul, is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

A)The oral statement is enforceable because Paul is the administrator.
B)An oral statement such as this is not enforceable because it is outside the statute of frauds.
C)An oral statement such as this is not enforceable because this promise is within the statute of frauds.
D)The oral statement is enforceable because it is a collateral promise.

Question 63

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.Parol evidence:

A)cannot be used to explain the term, because the plain meaning of a "year" is 12 months.
B)cannot be used to explain the term, because it is an integrated document.
C)can be used to clarify the parties' intent because in this contract the term "year" is ambiguous.
D)cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

Question 64

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement?

A)The price of the goods
B)The quantity of the goods
C)The signatures and names of the buyer and the seller
D)The time and place for delivery

Question 65

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt.The next day, Barry decides he can easily sell 100 more.Before the order is filled, he calls to change the order to 300 tee shirts.Champs sends 200.Can Barry force Champs to send the additional 100?

A)No, because there is no consideration for the extra 100 shirts
B)No, because Barry does not have a writing signed by Champs Tee Shirts
C)Yes, because this is a subsequent modification of the original contract
D)Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

Question 66

Stan orally agreed to sell his house to Humphrey and Humphrey made a down payment.Humphrey wanted it ready for his family quickly, so he had a new roof put on, new carpeting installed, and renovated the kitchen.Stan now thinks the place looks great and has decided not to sell.A business law student told him he could refuse to sell because the agreement was oral.Can he? Explain.

Question 67

Which of the following promises in consideration of marriage would be outside the statute of frauds?

A)In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death.
B)John and Mary mutually agree that their marriage shall not affect the existing property rights of the other.
C)John and Joan mutually promise to marry each other in a formal ceremony on June 23.
D)Joan promises to release a money judgment against Steven in consideration of his marrying her.

Question 68

Blevins, Inc.calls the Widget Corporation of America to order 400 widgets at $2 a widget.Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form.The form states that an order has been received for "300" widgets and that it will be filled promptly.In this case:

A)the order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed.
B)Blevins can enforce the contract for 300 widgets, but not for 400 widgets.
C)if Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later.
D)the contract is enforceable for 400 widgets, because it has been partially performed.

Question 69

The parol evidence rule does not apply to:

A)a typographical error that obviously does not represent the agreement of the parties.
B)evidence showing one of the parties to the contract lacks contractual capacity.
C)The parol evidence rule does not apply to the evidence in either of these situations.
D)The parol evidence rule applies to the evidence in both of these situations.

Question 70

Explain what the parol evidence rule is and when it is used.

Question 71

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the:

A)UETA.
B)UCC, Article 2E.
C)Electronic Signatures in Global and National Commerce Act.
D)Interstate and Foreign Commerce Electronic Transactions Act.

Question 72

Define the statute of frauds and give an example.

Question 73

Requirements for a memorandum that satisfies the statute of frauds include that the writing:

A)must be a single document.
B)must exist at the time of the litigation.
C)needs to be notarized.
D)None of these.

Question 74

With regard to the interpretation of a contract, what priority is given to each of the following items? (a) Course of dealing
(b) Usage of trade
(c) Express terms
(d) Course of performance

Question 75

Which of the following is untrue with regard to the interpretation of contracts?

A)Express terms prevail over course of performance, and course of performance prevails over course of dealing.
B)Technical terms will always be given technical meaning even where a different intent is manifested by the parties.
C)Handwritten or typed terms are given greater weight than preprinted terms.
D)All writings that are part of the same transaction are interpreted together.