Deck 14: Statute of Frauds and Equitable Exceptions

Question 1

If Fred cannot finish building a 20-story hotel by the contract's own terms within one year of its formation,the contract must be in writing.

Answer 1

True

Question 2

For Statute of Frauds purposes,an "interest in land" includes only the land itself and any fixtures attached to the land.

Answer 2

False

Question 3

Under the Statute of Frauds,express easements must be in writing.

Answer 3

True

Question 4

The "main purpose" or "leading object" exception is intended to ensure that the primary benefactor/guarantor of the contract is answerable for the debt or duty.

Question 5

A promise made in consideration of marriage need not be in writing under the Statute of Frauds.

Question 6

A contract to provide a service to a person for the remainder of that person's life is not required to be in writing under the Statute of Frauds even if the services are to be provided to someone who is young and healthy.

Question 7

Generally speaking,an oral contract that the Statute of Frauds requires to be in writing is voidable.

Question 8

A lease for more than a one-year term must comply with the Statute of Frauds.

Question 9

In a guarantee situation,there are only two parties involved.

Question 10

The "part performance" exception to the Statute of Frauds would allow an oral contract for the transfer of land to be enforced if the buyer had taken possession of and/or paid for the land.

Question 11

Even if a contract is required to be in writing by the Statute of Frauds,the parties may voluntarily perform the contract if they so choose.

Question 12

The Statute of Frauds may not be used as a defense to an already executed oral contract.

Question 13

A contract to provide services from February 1,2007,to November 25,2007,that was signed on September 15,2003,is required to be in writing under the Statute of Frauds.

Question 14

The Statute of Frauds is generally raised by one party as a defense to the enforcement of the contract by the other party.

Question 15

The Statute of Frauds does not apply to mortgage contracts.

Question 16

In a guaranty situation where the main purpose is not to benefit the guarantor,the guaranty contract must be in writing.

Question 17

The source of the Statute of Frauds today is a federal statute.

Question 18

The part performance exception to the Statute of Frauds applies only to guaranty contracts.

Question 19

Fixtures,such as cabinets,start out as personal property but become part of the real estate when they are attached to the wall.

Question 20

The primary purpose of the Statute of Frauds is to ensure that the terms of important contracts are not forgotten,misunderstood,or fabricated.

Question 21

A written contract may be enforceable against one party but not the other party.

Question 22

The Statute of Frauds requires that the following types of contracts be in writing except:

A) promises to make a will
B) promises to marry
C) contracts involving the sale of interests in land
D) contracts impossible to perform within a year

Question 23

Under the doctrine of promissory estoppel,the promisor is prevented from asserting the Statute of Frauds as a defense to the enforcement of an oral contract.

Question 24

Parol evidence can be admitted regarding additions to contracts,so long as they are reasonable.

Question 25

The equal dignity rule only applies if a private sale by owner of real estate is taking place.

Question 26

The physical attachment of several documents to form one contract may be allowed as long as the attachment indicates a party's intent to show integration.

Question 27

If Amy hires Cyrina,a licensed real estate agent and broker,to sell his cabin,the contract does not have to be in writing as long as Cyrina's real estate license is in writing.

Question 28

Ed's Cars is selling a car called the "Whamo" for $499.00 to Jane.The contract between the parties does not have to be in writing.

Question 29

Under the UCC Statute of Frauds,a contract for the sale of goods for the price of $500 must be in writing.

Question 30

The parol evidence rule prohibits any evidence outside the "four corners" of the written contract from being used to supplement or explain that contract.

Question 31

An oral contract for the sale of land is:

A) void
B) enforceable
C) voidable
D) unenforceable
E) implied

Question 32

Which of the following is not true about the Statute of Frauds?

A) One purpose is to preserve evidence where there might be a question about the terms of a contract long after the contract is entered into.
B) One purpose is to make parties think seriously about contracts that they might not otherwise seriously consider the potential consequences of.
C) A promise to marry someone must be in writing in order to be enforceable.
D) Prenuptial agreements must be in writing in order to be enforceable.

Question 33

Regardless of whether or not the parties have defined the words or terms of a contract,the courts will apply what is referred to as the standards of interpretation.

Question 34

The parol evidence rule does not apply to agreements made after the primary agreement.

Question 35

Promissory estoppel is a remedy at law.

Question 36

Which of the following contracts is not required to be in writing under the Statute of Frauds?

A) a contract to be performed in less than 1 year
B) a contract made in consideration of a promise to marry
C) a contract involving the sale of land
D) a contract for the sale of goods of $500 or more
E) a contract to pay someone else's debt if that person fails to

Question 37

The UCC does not allow the integration of writings to form a single contract.

Question 38

Where there is a contradiction in the terms of a contract,specific terms will control over general terms.

Question 39

If a judge rules that a party has lost its case because of the Statute of Frauds,the judge has essentially stated that which of the following?

A) The losing party purposely deceived the other party about a material fact.
B) The losing party will not be allowed to introduce evidence to contradict a written agreement.
C) The losing party cannot enforce an oral contract that should have been in writing.
D) The losing party was found by the court to have lied,and will therefore lose the case.
E) The winning party has proven criminally fraudulent conduct on the part of the losing party.

Question 40

A symbol or mark may act as an individual's signature as per the Statute of Frauds and the UCC's requirement that a written contract must be signed by the party against whom enforcement is sought.

Question 41

The equitable doctrine that permits enforcement of oral contracts that should have been in writing is known as:

A) the equal dignity rule
B) promissory estoppel
C) a collateral contract
D) part performance

Question 42

Which of the following is NOT one of the general rules of contract interpretation?

A) Ordinary words are interpreted according to their ordinary dictionary definition.
B) General terms are controlling over any inconsistent specific terms.
C) Handwritten words control over preprinted words.
D) Ambiguities are construed against the party who drafted the contract.
E) Technical words are given their technical meaning.

Question 43

The primary significance of requiring only the signature of the party "against whom enforcement is sought" under the Statute of Frauds is that:

A) the court will check to see that the signatures of both parties are present
B) the contract need not be signed by the party seeking to enforce the contract
C) parties can be penalized for failing to sign a written contract
D) a party's signature must be present in order to introduce evidence from outside the four corners of the contract

Question 44

The exception to the Statute of Frauds,which allows an oral contract for the transfer of land to be enforced,if the buyer has either paid for the land or taken possession of the land is called the ________ exception.

A) parol evidence
B) equal dignity
C) promissory estoppel
D) part performance
E) novation

Question 45

The Statute of Frauds requires that certain types of contracts:

A) be in writing in order to be valid
B) be in writing in order to be enforceable
C) contain a promise for an act
D) have two or more attorneys present at the signing of a written contract

Question 46

Incorporation by reference in a contract means that:

A) at least one of the parties is a corporation
B) the written contract has incorporated all aspects of the parties' agreement
C) the written contract includes all or part of another document as part of the written contract's terms
D) no terms other than those in the contract can be admitted as evidence in court

Question 47

In a guaranty arrangement,the guarantor:

A) promises to pay the debt of another in any circumstance
B) promises to pay the debt of another if that other person does not pay
C) promises to pay the debt of another contingent upon the happening of some external event
D) promises to assume responsibility for the quality of goods
E) promises to collect a debt or debts on behalf of a creditor

Question 48

Which of the following constitutes a sufficient signature under the Statute of Frauds?

A) the complete signature of the party
B) a signature affixed by an authorized agent
C) a party's first name or nickname
D) A and B only
E) A,B,and C

Question 49

An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:

A) a guaranty contract
B) unenforceable under the Statute of Frauds because it cannot possibly be performed within one year
C) enforceable under the Statute of Frauds
D) A and C only
E) A and B only

Question 50

A contract for the sale of land:

A) must be in writing only if the value of the land exceeds $500
B) requires at least two promisors
C) must be in writing in order to be enforceable
D) is governed exclusively by the Uniform Commercial Code
E) must be in writing or there is no contract

Question 51

For Statute of Frauds purposes,an interest in land includes:

A) fixtures
B) mortgages,leases,easements,and life estates
C) insurance contracts on interests in land
D) A and B only
E) A,B,and C

Question 52

The Statute of Frauds:

A) makes certain contracts illegal if they are not in writing
B) makes contracts covered by it voidable
C) is designed to protect minors from being taken advantage of
D) makes certain contracts unenforceable if they are not in writing

Question 53

The 1-year period for determining whether a contract is required to be in writing under the Statute of Frauds is measured from the date that:

A) the contract is formed until its stated completion date
B) performance begins until it is actually completed
C) the contract is formed until it is actually completed
D) performance begins until its stated completion date

Question 54

The part performance exception for contracts involving the sale of an interest in land provides that which of the following is true?

A) The parol evidence rule does not apply.
B) The contract will be enforced despite the fact that it is not in writing.
C) Where multiple parties share the performance obligations,the contract need not be in writing.
D) Once a contract has been partially performed,it must be put in writing if that has not already happened.
E) Contracts cannot be partly performed until they are put in writing.

Question 55

When a contract for the sale of goods is modified such that the total price due under the contract is modified,under what circumstances must the agreement to modify be in writing?

A) If the original contract amount was $500 or more.
B) If the contract price is changed by more than $500.
C) If the new contract price is more than $500.
D) B and C only are true.
E) A,B,and C are true.

Question 56

Which of the following contracts is required to be in writing under the Statute of Frauds?

A) A contract for the sale of one piece of business equipment costing $700.
B) A contract for the sale of two pieces of business equipment costing $300 each.
C) A contract for the purchase of a secondhand piece of home furniture from a consumer by a consumer in the amount of $600.
D) A and B only are required.
E) A,B,and C are required.

Question 57

A contract must be in writing under the Statute of Frauds if:

A) according to its terms,it cannot be performed within 1 year
B) its actual performance is not completed within 1 year
C) no one could perform the duties within 1 year
D) it would take no one more than a year to perform
E) in the past,no one has performed a similar contract within 1 year

Question 58

Under the Statute of Frauds:

A) the writing must be contained in a single document
B) the writing must be signed by both parties
C) any required signatures must be the complete signature of the person
D) incorporation of other documents by reference is permitted

Question 59

What does the parol evidence rule do?

A) It sets the rules for the admissibility of evidence relating to releasing a criminal from a prison term.
B) It determines which contracts are required to be in writing.
C) It sets the general rules for the admissibility of evidence in criminal actions.
D) It limits the ability of parties to written contracts from introducing certain evidence related to the contract.
E) It determines the types of evidence that can be introduced in connection with oral contracts.

Question 60

What does the "equal dignity rule" require?

A) That contracts for the sale of goods over a certain dollar amount be in writing.
B) Consideration to support a contract.
C) That the writing required by the Statute of Frauds meet certain requirements.
D) That an offer and an acceptance be mirror images of each other.
E) That the contract of an agent to sell property covered by the Statute of Frauds must be in writing for the sale of the property to be enforceable.

Question 61

Prior to signing a written agreement for hotel accommodations that provided for no refunds,the hotel manager stated to the guest,"We will give refunds if you have a good reason." Assuming that there was no fraud on the part of the hotel,which of the following is true?

A) The guest can introduce evidence of the oral statement to prove her entitlement to a refund.
B) The oral statement will take precedence over the terms of the written agreement.
C) The oral statement will be ignored by a court.
D) The contract is against public policy because of its mixture of oral and written terms.

Question 62

What is "parol evidence?"

A) Oral evidence that always conflicts with an existing valid written contract.
B) Evidence that is never admissible in a court of law.
C) Evidence that can apply to any written contract and may be used to clear up ambiguities.
D) Evidence that can only be introduced to clear up any questions regarding an oral contract.

Question 63

Which of the following is not a general rule of contract interpretation?

A) Ordinary words are given their ordinary dictionary definition.
B) Specific terms qualify or override general terms.
C) Handwritten terms prevail over printed terms.
D) Ambiguities in a contract are resolved in favor of the party who drafted the contract.

Question 64

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods.Because neither of them had any paper handy,Jack wrote the following on a napkin: "Jill agrees to purchase from Jack,1,000 widgets to be delivered on July 1,2001,at a cost of $10,000,payable on delivery." Jill signed the napkin,although Jack did not sign it.Jack delivered the widgets per the contract,but Jill refuses to pay for them.If Jack sues Jill for the price of the goods,the most likely result is which of the following?

A) Jill will win because this writing is not sufficient under the Statute of Frauds.
B) Jack will win because Jill signed the napkin.
C) Jill will win because Jack did not sign the contract.
D) Jack will win because the Statute of Frauds does not apply to this situation.

Question 65

A contract for the purchase of a bicycle states that the sale is made without any warranty and includes no service.In a separate paragraph of the contract it states that the seller will make free adjustments to the bicycle one time between 30 and 60 days after the purchase.This contract:

A) will be considered void due to the ambiguity
B) will be interpreted to not include the service
C) will be interpreted to include the one adjustment,but no others
D) will be interpreted to include the stated adjustment,as well as any others reasonably needed
E) will be interpreted as if the two contradictory terms were not part of the agreement

Question 66

John is president and sole shareholder of Photo,Inc.Photo,Inc.wishes to borrow money,but to do so,the bank requires John to orally guarantee to repay the loan if Photo,Inc.cannot.John's guaranty to repay is:

A) enforceable,because in general,guaranty contracts do not need to be in writing
B) unenforceable,because in general,guaranty contracts need to be in writing
C) enforceable,because the main purpose of the loan and the guarantee was to benefit John
D) unenforceable,because John did not sign any agreement

Question 67

Mandy enters a written agreement to rent a motor home for six days.Persons under age 25 are not permitted to drive it under terms of the written agreement.Mandy calls the rental company on the third day and asks if Dave,age 23,can drive it.The rental company says Dave can drive it if Mandy pays an extra $10 per day when he returns the motor home.When Dave drives in to return the motor home,the rental company refuses to return the $500 deposit because the written contract says any breach of the contract will result in the forfeiture of the entire damage deposit.Which is true?

A) Mandy loses because of the parol evidence rule.
B) Mandy loses because he had not yet paid the $10 extra per day.
C) Mandy wins because the parol evidence does not apply.
D) Mandy loses because of the Statute of Frauds.

Question 68

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,with payment to be made within 10 days and the deed delivered within another 30 days.Buyer sends Seller a letter in which all these terms are included,along with a check for $100,000 that Seller deposits.Seller fails to deliver a deed,and Buyer seeks to enforce the contract.This contract is:

A) enforceable,because Buyer had partly performed the contract by making payment
B) unenforceable,because there is no writing signed by Seller
C) enforceable,because Buyer sent a memorandum sufficient against himself,which binds Seller unless Seller objects,which he did not
D) unenforceable,because the parol evidence rule applies

Question 69

Helen goes to the bank to obtain an auto loan.Her father accompanies her to the bank.The loan officer states that the bank does not feel comfortable granting the loan unless her father will also guarantee that the money will be repaid.Her father states,"I'll make sure that she makes her payments,but I'm not signing anything!" The bank makes the loan.Is the father liable?

A) Yes. He specifically agreed to repay the loan.
B) No; the loan was for the benefit of his daughter and he received no tangible benefit.
C) No; not if he did not sign for the loan.
D) No,unless he used the vehicle for his own purposes.

Question 70

Under the parol evidence rule,which of the following items could be used to interpret,explain,or otherwise affect a complete and final written contract?

A) evidence of a prior oral agreement
B) evidence of a subsequent oral agreement
C) evidence to explain an unclear term or phrase
D) A and C only
E) B and C only

Question 71

Assuming the existence of a complete and final written contract,the parol evidence rule would prohibit evidence of:

A) prior or contemporaneous oral statements that alter,contradict,or add to the terms of the contract
B) prior or contemporaneous oral statements that explain ambiguities in the contract
C) subsequent oral statements that modify the contract
D) A and C

Question 72

Buyer and Seller orally agree to a contract for the sale of 400 shirts at $10 per shirt.Seller fails to perform and Buyer sues.This contract is:

A) enforceable,because the Statute of Frauds does not apply to sales of shirts
B) unenforceable,because the contract is not in writing
C) enforceable; no writing is required because the sale is not over the Statute of Frauds dollar limit
D) unenforceable,unless both parties are merchants

Question 73

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,one half in cash at closing and the other half 90 days after closing.Buyer sends Seller a letter in which all the terms are included and is signed by Buyer.Seller never responds.When the closing date arrives,Seller refuses to transfer title.Buyer sues.This contract is:

A) enforceable,because Buyer had partly performed the contract by sending the letter to Seller
B) unenforceable,because there is no writing signed by Seller
C) enforceable,because Buyer sent a memorandum sufficient against himself,which binds Seller unless Seller objects,which he did not
D) unenforceable,because the parol evidence rule applies

Question 74

Sam and Betty sign a written contract on June 1 in which Sam will sell his 1999 Honda Accord to Betty for $10,000,not including the CD player which is mounted in the trunk.Sam will remove the CD player from the car and keep it.They will exchange the car and money on June 10.On June 8,Betty tells Sam she will pay an extra $100 if he will include the CD player and Sam agrees.Which is true?

A) Sam and Betty cannot enter into the additional agreement regarding the CD player because it violates the parol evidence rule.
B) The additional agreement regarding the CD player is unenforceable because of the parol evidence rule.
C) The parol evidence rule does not apply to the agreement about the CD player because it was made after the original agreement was made.
D) The improper attempt to modify the original agreement renders the original agreement void.
E) The parol evidence rule would apply only if the agreement about the CD player was entered into after June 10.

Question 75

In December,2001,Mark signs a written consulting agreement for the period of January,2002,through May,2003.The contract is going well,so on June 15,2002,the parties orally agree to extend the arrangement by 4 months through September 2003.In October 2002,the client tells Mark that the 4-month extension will not be honored.Under these circumstances,which of the following is true?

A) The extension is unenforceable because it cannot be completed within one year of when the extension agreement was made.
B) The extension is unenforceable due to the parol evidence rule.
C) The extension is enforceable because the period of extension was less than 1 year.
D) The extension is enforceable because of the part performance exception.

Question 76

Two adults enter into an oral contract for the sale and purchase of some land.All material facts were disclosed by the seller to the buyer.Which is true?

A) This contract is voidable because it is not in writing.
B) This contract is unenforceable because of the Statute of Frauds.
C) Because the parties are adults,it is certain that there is no problem with capacity.
D) This is a unilateral contract if only one party transfers land.

Question 77

Buyer and Seller enter into an agreement on April 26 for the sale of a piece of equipment for $595.This agreement is in writing and calls for delivery and payment on June 1.On May 10,the Buyer and Seller orally agree to reduce the price to $495 because the Buyer has agreed to delay the delivery date to July 1.Which of the following is true?

A) The modified agreement is enforceable even though it was an oral modification to a written contract.
B) The parol evidence rule would prohibit the introduction of evidence of the contract modification.
C) The modified agreement is unenforceable because it is lacking consideration.
D) The modified agreement is enforceable because it was made within one year of the date that the original contract was executed.

Question 78

Lyle offers to sell Eddie his car for $1,000.Eddie shows up a day later,but Lyle refuses to deliver the car.Can Eddie enforce the contract?

A) Yes; it is a valid oral contract.
B) No,because the agreement was not in writing.
C) No,because Lyle can terminate the contract before accepting the money.
D) No,because Eddie did not immediately provide payment.

Question 79

A written agreement was signed by the parties and was intended to be their entire agreement.Under the parol evidence rule,oral evidence CANNOT be admitted to:

A) explain the meaning of an ambiguity in the contract
B) fill in a gap in the contract
C) prove the existence of a prior oral agreement that modifies the contract
D) prove the existence of a later oral agreement that modifies the contract

Question 80

A signed written contract states that "Sam will pay $900 for Skitravel to provide a week of skiing that includes lift tickets Sunday through Wednesday at Vail and Thursday through Saturday at Aspen.Skitravel will provide seven nights of lodging: Sunday,Monday,and Tuesday at Vail Hotel and Thursday,Friday,and Saturday at Aspen Lodge." The written contract failed to mention where Wednesday night accommodations would be.Which of the following statements,all made before this contract was signed,could be admitted into evidence?

A) "Wednesday night the accommodations will be at Vail Hotel."
B) "Saturday you will stay at the Westin Hotel in Aspen."
C) "Group lesson fees are included if you want lessons."
D) Because these statements are not in writing,none can be admitted into evidence.