Deck 16: Writing

Question 1

The statute of frauds covers all contracts that are for an indefinite period of time.

Answer 1

False
Explanation: If the contract is for an indefinite period of time,it is not within the statute of frauds.

Question 2

To satisfy the writing requirement of the statute of frauds,both parties must provide the entire agreement in writing.

Answer 2

False
Explanation: Most states require only a memorandum of the parties' agreement;they do not require that the entire contract be in writing.

Question 3

The statute of frauds applies exclusively to executory contracts.

Answer 3

True
Explanation: The statute of frauds applies only to executory contracts.If an oral contract has been completely performed by both parties,the fact that it did not comply with the statute of frauds would not be a ground for rescission of the contract.

Question 4

According to the general rules of interpretation of contracts,ordinary words are given their usual meanings and the technical words are given their technical meaning.

Question 5

Mr.Green signs a memorandum of understanding with Mr.Blue to buy his widgets.Mr.Green signs the last page of the memorandum by writing his initials in cursive.A court will enforce the agreement between Mr.Green and Mr.Blue.

Question 6

In general,ambiguities in a written agreement are resolved against the party who drafted the agreement.

Question 7

Mr.Yellow agreed to pay the debt created by Mr.Blue in his contract to Mr.Green.This agreement is called a collateral contract.

Question 8

A mortgage does not have to be writing.

Question 9

The statute of frauds does not require a writing when marriage is the consideration to support a contract.

Question 10

Parol evidence can be used to contradict the written terms of a partially integrated contract.

Question 11

If the parties make an agreement that is partially printed and partially handwritten,the handwritten provisions prevail over the printed provisions when they conflict.

Question 12

Parol evidence can be used to resolve ambiguities in a completely integrated written contract.

Question 13

Mr.Blue orally agrees to sell his home to Mr.Green.The court will refuse to recognize and enforce this agreement.

Question 14

An administrator makes an oral promise to pay the debts of the deceased.The debts amount to $60,000.This oral promise is enforceable.

Question 15

The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.

Question 16

A signature is sufficient to form the basis of authenticity of a written contract.

Question 17

All contracts must be in writing to be enforceable.

Question 18

The term "parol evidence" means written or spoken statements that are not contained in the written contract.

Question 19

An oral contract within the UCC statute of frauds can be enforced without a writing only if it involves the sale of specially manufactured goods.

Question 20

Some courts allow promissory estoppel to bind parties to oral contracts that otherwise would be unenforceable under the statute of frauds.

Question 21

Which of the following is covered by the statute of frauds?

A)A real estate mortgage
B)A $300 contract for the sale of pencils
C)A contract that can be performed within a week
D)A $100 DVD player repair

Question 22

Which statement about the statute of frauds is true?

A)All contracts must be in writing in order to be enforced.
B)Contracts for the sale of goods for $500 or more must be in writing in order to be enforced.
C)Contracts for the sale of land for $500 or more must be in writing in order to be enforced.
D)All employment contracts must be in writing in order to be enforced.

Question 23

On May 1,Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450.Dix paid Wilk $100 as a deposit.The following day,Wilk received another offer to purchase the land for $650,the fair market value.Wilk immediately notified Dix that he would not sell the land for $450.If Dix sues Wilk for specific performance,Dix will:

A)prevail,because the amount of the contract was less than $500.
B)prevail,because there was part performance.
C)lose,because the fair market value of the land is over $500.
D)lose,because the agreement was not in writing and signed by Wilk.

Question 24

Sean made an oral promise to sell a piece of land to Manny.Manny took a huge loan from the bank by mortgaging everything he had.After taking almost half the money from Manny,Sean decides that he wants to sell the land to Jason who is offering a higher price for the property.Which of the following doctrines can Manny take recourse to in order to implement his oral contract with Sean?

A)Integration
B)Subsequent agreement
C)Confirmatory memorandum
D)Part performance

Question 25

Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd 480 widgets (goods)at a price of $480.Later,the parties want to modify the contract so that the price would become $520.This modification:

A)must be in writing.
B)must be oral because the first contract was oral.
C)can be oral but need not be.
D)is unenforceable because the first contract is unenforceable.

Question 26

The statute of frauds was created in 1677 in which country?

A)United States of America
B)Germany
C)England
D)Russia

Question 27

Why is the contract for the insurance of a building not covered within the real estate provision of the statute of frauds?

A)It does not involve the transfer of interests in land.
B)It involves a physical asset.
C)It involves two or more parties.
D)It need not be in writing.

Question 28

Smith and Benson make an oral contract for the sale of land at a price of $500,000.After paying Smith $400,000 of the purchase price,Benson takes possession of the land.One month later,Smith wants to boot Benson off the land.His argument is that the parties' oral agreement is unenforceable under the statute of frauds.Which of the following is most correct?

A)Smith is correct,because the contract is for an amount greater than $500.
B)Smith is correct,because this is an oral contract for the sale of real estate.
C)Smith is incorrect,because the contract is for an indefinite period of time.
D)Smith is incorrect,because Benson paid part of the purchase price and took possession.

Question 29

A contract that cannot be performed within one year from the day on which it comes into existence:

A)is within the statute of frauds.
B)need not be in writing.
C)is called a unilateral contract.
D)is essentially illegal.

Question 30

An oral contract for the sale of land that has been completely performed by the vendor:

A)is part of the statute of frauds.
B)can be enforced without a writing.
C)needs to be signed by the parties.
D)has to be testified by witnesses.

Question 31

Which of the following is true of the statute of frauds?

A)It prevents the use of oral evidence to contradict the terms of a written contract.
B)It applies to all contracts having consideration valued at $500 or more.
C)It requires an independent promise to pay the debt of another to be in writing.
D)It applies to all real estate leases.

Question 32

Most states' statutes of frauds do not require land leases to be in writing unless they:

A)involve more than two parties.
B)are ancestral property.
C)are going to be sold permanently.
D)are for one year or more.

Question 33

Which of the following is not a reason why it is important for parties to memorialize their agreements in writing?

A)Writings are subject to the danger that a person might fabricate terms.
B)A party enhances his/her chances of proving that an obligation was undertaken and makes it harder for the other party to deny making the promise.
C)A person's signature on a written contract provides a basis for the contract to be authenticated.
D)Signing a writing communicates the seriousness of the occasion to the signer.

Question 34

A bilateral contract is "taken out of the statute of frauds" when:

A)it is completed within a year from the day of its existence.
B)it is fully performed by at least one party.
C)it is put in writing.
D)it has strict rules of performance.

Question 35

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor,the contract:

A)is the opposite of an original contract.
B)is considered void.
C)is outside the statute of frauds.
D)needs to be in writing.

Question 36

The statute of frauds requires that:

A)some contracts be evidenced by a writing.
B)all contracts involving fraud must be void.
C)all three-party contracts be collateral ones.
D)there can be no secondary debts in a contract.

Question 37

Mr.Green has a month-to-month lease for an apartment owned by Mr.Blue.The lease between Mr.Green and Mr.Blue is oral.How will the court handle the lease?

A)The court will recognize and enforce the lease.
B)The court,due to the statute of frauds,will not recognize or enforce the lease.
C)The court will not recognize the lease unless there is a subtenant.
D)The court will only recognize the lease if requested by the Secretary of State.

Question 38

Rick tells Dan that Sue will inherit a mansion if she pays him back an old debt.Since Sue is unable to pay the debt,Dan offers to pay it,provided that he gets the mansion from Rick.The agreement between Dan and Rick need not be in writing under the:

A)collateral contract rule.
B)parol evidence rule.
C)leading object rule.
D)part performance rule.

Question 39

Big Bank is a major creditor of Bonwill Department Store.After a major loss in profits due to poor holiday sales,Big Bank decides to help keep Bonwill from bankruptcy.Big Bank orally promises Mary Tudor,a supplier of Bonwill's,that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill.Most likely,Big Bank's oral agreement:

A)is unenforceable under the statute of frauds.
B)is unenforceable because it is a collateral contract.
C)is enforceable under the "main purpose" or "leading object" exception to the statute.
D)is enforceable because a collateral contract is not covered under the statute of frauds.

Question 40

Under the ________,no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage.

A)parol evidence rule
B)leading object rule
C)collateral contract rule
D)part performance rule

Question 41

The underlying purpose of the statute of frauds is to:

A)prevent fraud in general.
B)corroborate the existence of an oral contract.
C)punish those who commit fraud.
D)make fraud illegal.

Question 42

Mr.Green and Mr.Blue contract orally to transfer 500 widgets for $1,000.Mr.Blue sends Mr.Green a receipt one week after the agreement.If Mr.Green now refuses to recognize the agreement a court will find what?

A)That a memorandum of agreement was created by the receipt sent by Mr.Blue and an enforceable agreement exists
B)That no agreement exists because there is no typed agreement according to the statute of frauds
C)There is no enforceable agreement because the receipt was not sent at the same time as the agreement
D)The agreement is not enforceable because the Secretary of State did not approve the agreement

Question 43

Which of the following is true regarding the statute of frauds' writing requirement?

A)The writing must be contained in one document.
B)The writing must be signed by both parties.
C)The writing must be signed by the buyer.
D)The writing must indicate the parties' identities.

Question 44

Which of the following is admissible with respect to a partially integrated contract?

A)Evidence that seeks to make the contract completely divisible
B)Evidence that resolves ambiguities in the contract
C)Evidence that the contract is unconditional on the happening of some event
D)Evidence that contradicts the contract's provisions

Question 45

Sammy entered into an oral contract with Macaulay for the sale of goods amounting to $900.Sammy paid the amount.But Macaulay refused to deliver the goods.Sammy thus suffered serious losses due to Macaulay's breach of contract.Sammy sued Macaulay.At the same time Macaulay took the defense under statute of frauds.Under which principle is Sammy protected?

A)Tortious liability
B)Vicarious liability
C)Part performance
D)Promissory estoppel

Question 46

A memorandum for the sale of goods that does not indicate the ________ of goods to be sold will not satisfy the UCC's writing requirement.

A)quality
B)quantity
C)delivery
D)cost

Question 47

King,a circuit board manufacturer,called Foster,a computer storeowner,and offered to sell him 500 circuit boards for $20,000.Foster accepted the offer over the telephone that same day.King immediately sent Foster a signed memorandum confirming the deal they made orally.Which of the following statements concerning the contract is correct under the statute of frauds?

A)No contract was formed because Foster did not sign the offer.
B)No contract was formed because King is not a merchant.
C)A contract was formed unless Foster objects to the memorandum within 10 days of receiving it.
D)A contract was formed but it is unenforceable.

Question 48

April and Brian entered into a partially integrated written contract.During negotiations,April made an oral statement to Brian regarding the terms of the contract.This statement was not contained in the written contract.Under the parol evidence rule,evidence of April's oral statement would be admissible if it were used to:

A)create a completely new agreement.
B)introduce an ambiguous term in the written contract.
C)prove an additional term consistent with the written agreement.
D)change the terms of the written contract.

Question 49

In order to satisfy the statute of frauds,the parties' writing must be:

A)signed by both parties.
B)in legalese.
C)signed by the "party to be charged."
D)compressed into a single document.

Question 50

Whose signatures are needed in order to satisfy the statute of frauds?

A)Only the signatures of witnesses to the agreement are required.
B)Only the signature of the party attempting to enforce the contract is required.
C)Only the signature of the party against whom enforcement is being sought.
D)Only the signature of the third party to the contract,the beneficiary,is required.

Question 51

The parol evidence rule is relevant only in cases:

A)that are oral in nature.
B)where parties have expressed their agreement in a written contract.
C)of the sale of goods.
D)subsequent modification do not have a suitable consideration.

Question 52

Bruce told Adam that he was selling his house in Syracuse,New York.Adam sent Bruce an e-mail containing an offer of $300,000 for the house.Bruce responded via e-mail that he wanted $315,000 for the house.After further e-mails,the parties finally agreed on a sale with a price of $310,000.A series of e-mails contained the terms of the sale,and all included a salutation containing their typewritten names.However,Bruce later decided to sell the house to Marty for $325,000.Adam sued Bruce,claiming that Bruce breached their contract for the sale of the house.Most likely,Adam will:

A)lose,because the contract does not meet the statute of frauds.
B)lose under the parol evidence rule.
C)win,because the essential terms of the contract were set forth in the signed e-mails.
D)win,because of the partial performance exception to the statute of frauds.

Question 53

Which of the following is a uniform state law designed to "remove barriers to electronic commerce by validating and effectuating electronic records and signatures"?

A)Uniform Electronic Transactions Act (UETA)
B)Electronic Signatures in Global and National Commerce Act (E-Sign)
C)Electronic Communications Privacy Act (ECPA)
D)Graham-Leach-Bliley Act (GLBA)

Question 54

If it is not indicated in the memorandum,where should the parties sign to make the document enforceable?

A)Right corner
B)Left corner
C)Bottom
D)Any place on the memorandum

Question 55

The "confirmatory memorandum" exception to the UCC's statute of frauds provision:

A)requires that the memorandum be signed by the party to be bound.
B)requires that the memorandum be sent within ten days after the contract is made.
C)requires that both parties receive the memorandum and have reason to know of its contents.
D)requires that both parties to the contract be merchants.

Question 56

The marriage provision in the statute of frauds is inapplicable to agreements that involve:

A)postnuptial agreements.
B)oral one-sided promises of marriage.
C)mutual promises to marry.
D)prenuptial agreements.

Question 57

A fully "integrated" contract under the parol evidence rule is one that:

A)is intended by the parties to include both goods and services.
B)is intended by the parties to include several agreements.
C)is intended by the parties to be a preliminary statement of their agreement.
D)is intended by the parties to be the complete and final statement of their agreement.

Question 58

The Electronic Signatures in Global and National Commerce Act (E-Sign):

A)invalidates agreements between parties conducting transactions by electronic means.
B)states that electronic transactions on subjects covered by the statute of frauds require an additional writing.
C)overrides state laws that are inconsistent with the UETA.
D)creates barriers to e-commerce by invalidating electronic records and digital signatures.

Question 59

The Uniform Commercial Code is different from the common law statute of frauds rule,as it:

A)is easier to satisfy.
B)requires all contracts to be in writing.
C)applies to service contracts only.
D)applies to real estate contracts only.

Question 60

With regard to an agreement for the sale of real estate,the statute of frauds:

A)does not require that all parties sign the agreement.
B)does not apply if the value of the real estate is less than $500.
C)requires that the entire agreement be in a single writing.
D)requires that the purchase price be equal to the value of the real estate.

Question 61

As demonstrated in Dynegy,Inc.v.Yates,the case in the text,when a contract is determined to be collateral:

A)the principal debtor must pay the guarantor directly.
B)the guarantor must pay,even if the principal debtor is able to do so.
C)it will be unenforceable unless it is evidenced by a writing.
D)proof of an oral agreement is sufficient to prove a contract existed.

Question 62

Stewart,who wants to help Marcy establish her own business,promises ABC Bank that he will repay the loan that ABC Bank makes to Marcy if Marcy fails to pay it.In this instance,Marcy is the:

A)principal debtor.
B)obligor.
C)guarantor.
D)guarantee.

Question 63

Abel enters into an oral contract to work for Carr for an indefinite period of time at a rate of $50,000 per year.Is this agreement exempt from the statute of frauds?

A)No,because the agreement covers services with a value in excess of $500.
B)No,because the agreement covers a time period in excess of one year.
C)Yes,because the agreement is for an indefinite period of time.
D)Yes,because the work can be completed within one year.

Question 64

A merger clause is also known as an:

A)interpretation clause.
B)interrogation clause.
C)integration clause.
D)instrumental clause.

Question 65

Which of the following contracts is not covered by the statute of frauds?

A)A contract for the sale of an interest in real estate.
B)A contract for the sale of goods for a price of $400.
C)A contract that is collateral in nature where a person promises to perform the obligation of another.
D)A contract in which marriage is the consideration.

Question 66

A(n)________ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.

A)implied
B)third-party beneficiary
C)collateral
D)quasi

Question 67

In 17th-century England,before the enactment of the Statute of Frauds in 1677,a legal rule:

A)allowed both parties to a lawsuit and third-party witnesses to testify.
B)only allowed parties to a lawsuit to testify in their own cases.
C)prohibited parties to a lawsuit from testifying in their own cases.
D)prohibited parties to a lawsuit from calling third-party witnesses to testify.

Question 68

Which of the following statements about the United Nations Convention on Contracts for the International Sale of Goods (CISG)is true?

A)The CISG requires that all contracts be in writing to be enforceable.
B)The CISG requires that contracts can only be proven by subsequent agreements.
C)The CISG requires that all contracts must be supported by independent evidence.
D)The CISG permits parties to a written contract to require that any modifications of the contract be in writing.

Question 69

A contract that fails to comply with the statute of frauds is generally:

A)unenforceable.
B)illegal.
C)void.
D)voidable.

Question 70

If a contract is unenforceable for failure to comply with the statute of frauds,a party that conferred some benefit on the other party pursuant to the contract may be able to recover in an action based on:

A)express contract.
B)quasi-contract.
C)implied contract.
D)actual contract.

Question 71

Ward is attempting to introduce oral evidence in an action relating to a written contract between Ward and Weaver.Weaver has pleaded the parol evidence rule.Ward will be prohibited from introducing parol evidence if it relates to:

A)a modification made several days after the contract was executed.
B)a change in the meaning of an unambiguous provision in the contract.
C)fraud in the inducement.
D)an obvious error in drafting.

Question 72

Jenny promises National Bank that she will repay the loan that National Bank makes to Garrett if Garrett fails to pay it.In this instance,Jenny is the:

A)obligor.
B)guarantee.
C)guarantor.
D)principal debtor.

Question 73

Which of the following statements about collateral contracts is true?

A)The guarantor promises to pay only if the principal debtor fails to do so.
B)A collateral contract involves three parties and one promise to perform.
C)The guarantor's debt is primary.
D)The principal debtor's debt is secondary.

Question 74

Subsequent agreements are treated in what way under the parol evidence rule?

A)Subsequent agreements are admissible under the parol evidence rule
B)Subsequent agreements are not admissible unless they were filed with a governmental agency
C)Subsequent agreements are not admissible since they attempt to modify an integrated contract
D)Subsequent agreements are not admissible unless that involve two international parties

Question 75

Which of the following statements about the "in writing" requirement for the majority of states is false?

A)The entire contract must be in writing.
B)To satisfy this requirement,a memorandum of the parties' agreement will suffice.
C)The essential terms of the contract must be stated in the writing.
D)The writing need not have been created with the intent that the memorandum itself would be binding.

Question 76

In the case in the text,Browning v.Poirier,the court held that:

A)Poirier was entitled to a judgment in her favor because the statute of frauds required the agreement to be in writing.
B)Poirier was entitled to a judgment in her favor because evidence showed that Browning did not contribute to the purchase of the winning lottery ticket.
C)Browning was entitled to judgment in his favor because the agreement was to continue as long as the parties were involved in a romantic relationship.
D)Browning was entitled to judgment in his favor because the statute of frauds did not require the agreement to be in writing.

Question 77

When a person undertakes an obligation that is not conditioned on the default of another person,and the debt is his own rather than that of another person,his obligation is said to be ________,not collateral.

A)secondary
B)original
C)implied
D)express

Question 78

In determining whether a contract is within the one-year provision of the statute of frauds,courts begin counting time on the day when the:

A)offer was sent.
B)parties initiated negotiations.
C)contract comes into existence.
D)parties filed their agreement with the secretary of state.

Question 79

Which of the following is a contract remedy whereby the defendant is ordered to perform according to the terms of his or her contract?

A)Rescission
B)Specific performance
C)Promissory estoppel
D)Restitution

Question 80

A written agreement was signed by two parties and it was intended to be their entire agreement.The parol evidence rule will prevent the admission of evidence that is offered to:

A)prove the existence of additional terms of the agreement to contradict the written terms of the contract.
B)prove the existence of a subsequent oral agreement that modifies the contract.
C)explain the meaning of an ambiguity in the written contract.
D)establish that fraud had been committed in the formation of the contract.