Deck 15: B: The Statute of Frauds

Question 1

A contract must be in writing to be enforceable if performance is impossi?ble within one year.

Answer 1

True

Question 2

To be enforceable,a contract for a sale of goods priced at $50 or more must be in writing.

Answer 2

False

Question 3

There are no exceptions to the Statute of Frauds.

Answer 3

False

Question 4

A party's oral agreement to pay another's debt is never enforceable.

Question 5

The Statute of Frauds requires that statutes must be in writing.

Question 6

A contract may have to be in writing to be enforceable even if its performance is possible within a year.

Question 7

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

Question 8

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

Question 9

An oral contract for a sale of land may be enforceable if the contract has been partially per?formed.

Question 10

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

Question 11

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

Question 12

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

Question 13

An oral contract that must be in writing to be enforceable is not enforce?able even if the parties admit to its existence in court.

Question 14

If a contract to do something in certain intervals over a period of less than one year is not in writing,it is not enforceable.

Question 15

Under the Statute of Frauds,any contract that is not in writing is void.

Question 16

A contract that by its own terms cannot be performed within a year must be in writing to be enforceable.

Question 17

All collateral promises must be in writing to be enforceable.

Question 18

Parol evidence includes testimony of communications between the parties that is not contained in the contract itself.

Question 19

A contract involving a lease is the only contract relating to an interest in land that must be in writing to be enforceable.

Question 20

An oral con?tract for a transfer of an interest in land is never enforceable.

Question 21

Natalie agrees to assume Orina's debt to Consumer Credit Corporation.Natalie does not get any personal benefit for the agreement.To be enforceable,the prom?ise must be in writing if the debt is for

A)more than $500.
B)more than $5,000.
C)more than $50,000.
D)any amount.

Question 22

Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400.Assuming the terms can be proved,the con?tract is enforceable by

A)the seller or the buyer.
B)the manufacturer of the laptop.
C)any third party who overheard the parties making the agreement.
D)none of the choices.

Question 23

Timber Farms,Inc. ,and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood.Under the Statute of Frauds,this contract is enforceable by

A)the seller.
B)the buyer.
C)any interested third party,such as the mortgagee or title company.
D)none of the choices.

Question 24

Fact Pattern 15-A2
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity.The parties intend their written contract to be a final statement of the terms of their agreement.
Refer to Fact Pattern 15-A2.The writing that Radford and Serenity signed is

A)a completely integrated contract.
B)a divisibly integrated contract.
C)a partially integrated contract.
D)a severably integrated contract.

Question 25

Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years.This contract is en?forceable by

A)Kirk.
B)Green.
C)any interested third party,such as a janitorial supplies provider.
D)none of the choices.

Question 26

Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank.The agreement is not in writing.To be enforceable,the promise must be for the benefit of

A)any party.
B)Steve.
C)Thumb Grippers.
D)Main Street.

Question 27

Glenn and Haji sign a written contract.Glenn 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" exception.
C)the "partial performance" exception.
D)the Statute of Frauds.

Question 28

Grandiloquent Properties,Inc. ,and Investment Capital Corporation enter into a con?tract for a sale of land.To be enforceable,the contract must be in writing if the land is valued at

A)more than $500.
B)more than $5,000.
C)more than $50,000.
D)any price.

Question 29

Ginamarie files a suit against Gaming Innovators Unlimited,Inc. ,to enforce a written con?tract between the parties.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 orally before the contract but not contained in it.
C)terms discussed orally at the time of the contract that contradict the written terms.
D)nothing.

Question 30

Garden & Yard Landscaping and Penelope enter into an oral contract under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months.This con?tract is enforceable by

A)Garden & Yard.
B)Penelope.
C)any interested third party,such as Valley Country Club.
D)none of the choices.

Question 31

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins,which they both sign.A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

A)every term.
B)the essential terms.
C)the preliminary terms.
D)the qualitative terms.

Question 32

Fact Pattern 15-A1
Macro Marketing,Inc. ,and National Food Corporation (NFC)discuss the terms of a contract.Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed,including a two-year term.Macro begins to perform,but NFC refuses to pay.Macro files a suit to collect.NFC claims that there is no contract.
Refer to Fact Pattern 15-A1.Between Macro and NFC,there is

A)an oral contract only.
B)a pre-contract only.
C)a written contract.
D)no contract.

Question 33

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store,and downloads $300 worth of digital music from E-Music.com.To be enforceable,the contract that must be in writing is the purchase of

A)the digital music,the MP3 player,and the speakers.
B)the MP3 player and the speakers only.
C)the MP3 player only.
D)the speakers only.

Question 34

Fact Pattern 15-A1
Macro Marketing,Inc. ,and National Food Corporation (NFC)discuss the terms of a contract.Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed,including a two-year term.Macro begins to perform,but NFC refuses to pay.Macro files a suit to collect.NFC claims that there is no contract.
Refer to Fact Pattern 15-A1.The transaction between Macro and NFC falls within the Statute of Frauds'

A)collateral-promise provision.
B)one-year rule.
C)sales-of-goods stipulation.
D)secondary-contracts section.

Question 35

Shady Oaks Development,LLC,and Rural Acres,Inc. ,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 consideration.
D)a description of the land.

Question 36

Elle buys a new textbook for $100 and a used car for $5,000,and signs a one-year lease for an apartment for $1,000 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 37

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

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

Question 38

Niche Credit,Inc. ,is one of Cut-Rite Notching Corporation's two major creditors.Niche guarantees Cut-Rite's debt to the firm's other major creditor,Manufacturers Capital Bank,to forestall litigation.To be enforce?able,this guarantee

A)must be in writing.
B)need not be in writing if it benefits Niche Credit.
C)need not be in writing if it benefits Cut-Rite Notching.
D)need not be in writing if it benefits Manufacturers Capital Bank.

Question 39

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts.Lyra tells Moe that her commission is 6 percent,but their signed,written contract states "12 percent." The Statute of Frauds 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 reformation of oral and written statements into one contract.

Question 40

Fact Pattern 15-A2
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity.The parties intend their written contract to be a final statement of the terms of their agreement.
Refer to Fact Pattern 15-A2.Serenity later disputes some of the provisions in the deal with Radford.If the dispute results in litigation,a court will most likely exclude evidence that

A)buttresses the written terms.
B)contradicts the written terms.
C)duplicates the written terms.
D)reinforces the written terms.

Question 41

Frances has lived in an apartment for ten years when she decides to buy a house.Her one-year lease will end on May 1.On April 15,she orally con?tracts to buy Smith's house for $100,000,with the closing (transfer of the deed)to take place on June1.Smith's lawyer,who is out of town on vaca?tion,is to draft a written contract of sale on his return to his office on May 15.Because Frances's lease is terminating,Smith agrees to let her take possession of the house on May 1 if Frances gives him a "down payment" on the house of $5,000.Frances agrees and gives Smith the $5,000.She moves into the house on May 2,and the following weekend plants trees in the back yard.On May 10,Smith receives a written offer from Green to buy Smith's house for $120,000.Smith accepts Green's offer,asks Frances to move out of the house,and tries to return the $5,000 to Frances.Frances claims that she has an enforceable contract to buy the house.Smith claims that any such contract must be in writing to be en?forceable under the Statute of Frauds.Who is correct and why?

Question 42

Downspout Drainage Company hires Earl to design a Web page for Downspout for $400.Before the project is started,Downspout asks Earl to trouble-shoot Downspout's computer operating system software for an additional $400.Earl agrees.The en?tire contract is oral.Earl completes the work,but Downspout refuses to pay.Earl files a suit against Downspout,which raises the Statute of Frauds as a de?fense.Can Earl recover from Downspout? If so,how much,and on what basis?