Deck 13: The Statute of Fraudswriting Requirement

Question 1

A contract involving property of any kind must be in writing to be enforceable.

Answer 1

False

Question 2

A party's oral agreement to pay another's debt is NOT enforceable if the party's main purpose is to derive a benefit for himself or herself.

Answer 2

False

Question 3

A contract in which a party assumes a secondary obligation must be in writing to be enforceable.

Answer 3

True

Question 4

The primary purpose of the Statute of Frauds is to ensure that all parties to a contract understand all the terms of the contract.

Question 5

Prenuptial agreements are agreements made during a wedding ceremony that define each partner's duties to one another during the marriage.

Question 6

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.

Question 7

A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.

Question 8

Every state has a statute that stipulates what types of contracts must be in writing.

Question 9

Under the Statute of Frauds, an oral contract for the transfer of a mortgage is enforceable.

Question 10

Any collateral promise falls outside the Statute of Frauds and does not need to be in writing to be enforceable.

Question 11

A prenuptial agreement must be in writing to be enforceable.

Question 12

An oral con?tract for a transfer of land is always enforceable.

Question 13

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.

Question 14

An agreement that includes an option to purchase real property must be in writing for the option to be enforced.

Question 15

A contract must be in writing to be enforceable if the contract makes per?formance possible within any definite period of time.

Question 16

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

Question 17

A contract for lifetime employment cannot not be performed within one year and so it must be in writing to be enforceable.

Question 18

Under the Statute of Frauds, oral contracts are void.

Question 19

The Statute of Frauds is a compilation of all the laws and regulations related to fraud.

Question 20

Under the Statute of Frauds, fixtures, such as buildings, growing crops and minerals, are treated as real property.

Question 21

A contract for a sale of goods priced at $501 must be in writing to be enforceable.

Question 22

Selena buys a cell phone for $350 and an air hockey table for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

A) the employment contract, and the game table and phone purchases.
B) the employment contract and the game table purchase only.
C) the employment contract only.
D) the game table and phone purchases only.

Question 23

To be enforceable as a contract, a writing must have been signed by the party who seeks to enforce it.

Question 24

Ted and Svetlana orally agree to several different oral contracts. The Statute of Frauds will bar enforcement of an oral contract for

A) a deal that will be performed within a year.
B) a primary obligation.
C) a sale of goods for $100.
D) a sale of land.

Question 25

An oral contract for a sale of goods for more than $5,000 is not enforceable even if the parties to it admit to its existence in court.

Question 26

To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include the essential terms.

Question 27

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.

Question 28

Evidence of prior agreements that differ from the written terms of a con?tract can be introduced in court to alter the contract.

Question 29

Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

Question 30

Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to deliver a collection of exotic wines by April 30 of the following year. This contract is enforceable by

A) Jayne only.
B) Wilbur only.
C) either party.
D) neither party.

Question 31

In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.

Question 32

Oral evidence of the modification of a contract after its making can be introduced at a trial.

Question 33

Fiona and Dora enter into an oral contract under which Fiona agrees to work on Dora's farm for not less than one week. This contract is enforce?able by

A) Fiona only.
B) Dora only.
C) either party.
D) neither party.

Question 34

An integrated contract is a contract with more than one subject or part.

Question 35

Oral evidence to "fill in the gaps" of a contract with incomplete terms can be introduced at a trial.

Question 36

Courts may grant specific performance of an oral contract to transfer an interest in land that has been partially performed.

Question 37

An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.

Question 38

Big Dog Security Service, Inc. orally agrees to provide security services for NorthGate Mall for as long as NorthGate Mall requires them. This contract is enforceable by

A) Big Dog Security only.
B) NorthGate Mall only.
C) either party.
D) neither party.

Question 39

Parol evidence includes testimony about communications between the parties that are not contained in the contract itself.

Question 40

There are no exceptions to the writing requirement of the Statute of Frauds.

Question 41

Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in

A) all states.
B) no states.
C) one state.
D) some states.

Question 42

Francine buys a new business-law textbook for $125 and a used car for $6,000. She also signs a one-year lease for an apartment for $700 monthly rent to start at the beginning of the next month. The Statute of Frauds covers

A) the apartment lease, and the textbook and car purchases.
B) the apartment lease and the car purchase only.
C) the apartment lease only.
D) the textbook and car purchases only.

Question 43

Julie orally agrees to assume Carlyle's debt to FunGames, Inc. Julie gets a substantial personal benefit from the agreement-Carlyle agrees to work for Julie's landscaping service for six months. Julie's oral assumption of the debt is enforceable by

A) Julie or Carlyle only.
B) FunGames only.
C) any of the parties.
D) no one.

Question 44

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable, the contract must be in writing for the purchase of

A) the tunes, the GPS device, and the tablet.
B) the GPS device and the tablet only.
C) the tablet only.
D) the tunes only.

Question 45

Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any per?sonal benefit from the agreement. This contract is enforceable by

A) any party.
B) Jiffy only.
C) Jiffy or Kyle.
D) none of the parties.

Question 46

Marta buys a candy bar for $5 and signs a contract for delivery of fresh flowers to her mother's nursing home every week for the rest of her mother's life. She then enters into a contract to assume George's debt to FastCars Dealership. Marta receives no personal benefit from assuming George's debt. The Statute of Frauds covers

A) the candy purchase only.
B) the candy purchase and the delivery contract only.
C) the contract to assume George's debt only.
D) the contract to assume George's debt and the delivery contract only.

Question 47

Quest Holdings, Inc., orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp. Ray pays part of the rent, takes possession, and improves the property for use by his enterprise. The contract is most likely enforceable by

A) Quest Holdings and Ray.
B) Quest Holdings but not Ray.
C) any interested third party, such as a Swamp & Bayou client.
D) no one.

Question 48

Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes posses?sion of the items, this contract is enforce?able by

A) either party.
B) neither party.
C) Atlantic only.
D) PRC only.

Question 49

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

A) no one.
B) Lucas and Natural Soft Drinks.
C) Lucas.
D) Natural Soft Drinks.

Question 50

Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

A) either party.
B) Miranda only.
C) neither party.
D) Nicky only.

Question 51

Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than

A) $5.
B) $15.
C) $50.
D) $500.

Question 52

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con?tract is enforceable by

A) the seller or the buyer.
B) the manufacturer of the mixer.
C) any third party with an interest in the deal, such as one of Dick's customers.
D) none of the choices.

Question 53

Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel,

A) the Charger must be considered a customized good.
B) Carolina must act in reliance on Benito's promise to her detriment.
C) Benito's promise must have been overheard by a third party.
D) there must be written evidence of the deal.

Question 54

Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

A) Daisy foreseeably and justifiably relied on Elton's promise to her detriment.
B) Elton denies the existence of any contract.
C) neither party has begun to perform.
D) the deal does not involve customized goods.

Question 55

Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic can enforce the contract to

A) any extent because the order was placed orally.
B) no extent because the order was placed orally.
C) the extent of the ten accepted cartons.
D) the extent of the twenty ordered cartons.

Question 56

Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate

A) the method of delivery.
B) the method of payment.
C) the quantity of saddles.
D) the seller.

Question 57

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

A) only if it is in writing.
B) only if the amount of the investment is more than $500.
C) only if Glenn agrees to marry Flossy.
D) under no circumstances.

Question 58

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret. The contract must be in writing if the pecans cost

A) $100.
B) $150.
C) $250.
D) $500.

Question 59

Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

A) any party.
B) Sharon.
C) Tom's Guitars.
D) United Funds.

Question 60

Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by

A) none of these parties.
B) any of these parties.
C) Wild Rides only.
D) RollercoasterRepair only.

Question 61

Ranchland Properties and Prairie State Investments sign a writ?ten contract for a sale of land. In some states, to be enforceable, this con?tract must include

A) a correct title, such as "Land Transfer" or "Real Estate Agreement."
B) a declaration of the contract's purpose.
C) a statement of the source of financing.
D) a description of the land.

Question 62

Fact Pattern 13-1
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
Refer to Fact Pattern 13-1. Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are

A) ambiguous.
B) consistent.
C) contradictory.
D) clear.

Question 63

Ulrich files a suit against Vern to enforce a written con?tract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

A) an orally agreed-on condition precedent.
B) terms discussed before the contract but not contained in it.
C) terms discussed at the time of the contract that contradict the written terms.
D) nothing.

Question 64

Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, the writing must include

A) a correct title, such as "Shipment Contract."
B) all essential and nonessential terms.
C) a statement of the consideration.
D) a description of the parties' businesses.

Question 65

In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is in?cluded. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Question 66

Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable, the contract must include

A) no particular signatures.
B) the signatures of all parties to the deal.
C) the signature of the party against whom enforcement is sought.
D) the signature of the party who is seeking enforcement.

Question 67

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written con?tract for a sale of goods. To be enforceable, this written contract must include

A) a correct title, such as "Purchase Order" or "Sales Invoice."
B) a date, such as "October 2014" or "10/2014."
C) a quantity term, such as "50 hammers" or "100 boxes of assorted nails."
D) the parties' contact information.

Question 68

Raconteur Data Analysis Corporation in Seattle, Washington, offers a job to Trista, who lives in Utah. Trista orally agrees to work for Raconteur for two years. She moves her family to Seattle and begins work. Three months later, she is fired for no stated cause. She files a suit against Raconteur for rein?statement or pay. Raconteur pleads the lack of a written con?tract. In whose favor is the court likely to rule, and why?

Question 69

Hanson and Taylor sign a written contract for the transfer of Hanson's Foot & Ankle Clinic to Taylor. Hanson claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under

A) the doctrine of promissory estoppel.
B) the "main purpose" rule.
C) the "partial performance" exception.
D) the Statute of Frauds.

Question 70

Brenda induces Carmen to enter into a contract for the sale of a gas station and convenience store. Brenda tells Carmen that she is the sole owner, but their signed, written contract lists Brenda's parents as co-owners. The parol evidence rule governs

A) contracts that are induced by fraud.
B) contracts that must be in writing to be enforceable.
C) the admissibility in court of oral evidence.
D) the merging of oral and written statements into one contract.

Question 71

Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a con?tract. The only written evidence of the contract is a memo on DAI's let?terhead as signed by a DAI officer in its files. The con?tract can be en?forced if the memo includes

A) a correct title, such as "Chloe-DAI Contract."
B) all essential terms.
C) a statement of the consideration.
D) the parties' addresses.

Question 72

Fact Pattern 13-1
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
Refer to Fact Pattern 13-1. The writing that Alain and Brie signed is

A) a completely integrated contract.
B) a conditionally integrated contract.
C) a partially integrated contract.
D) a supplemental integrated contract.