Deck 13: Form and Meaning

Question 1

Which of the following will be enforceable under UCC?

A) On January 1, 1998, Hannah makes an oral agreement to pay $4,000 to Harry for his bike on June 1, 1999.
B) On January 1, 1998, Hannah makes an oral agreement to pay $700 to Harry for his bike on June 1, 1999.
C) On January 1, 1998, Hannah makes an oral contract to pay $4,000 to Harry for his bike which she has received and accepted by June 1, 1999.
D) On January 1, 1998, Hannah makes an oral agreement to pay $6,000 to Harry for his house.
E) On January 1, 1998, Hannah makes an oral agreement to pay $4,000 to Harry for his bike by June 1, 1999.

Answer 1

C

Question 2

According to the statute, which of the following is an exception to the Statute of Frauds written requirement?

A) The ten-day-reply doctrine
B) Specially manufactured goods
C) Main purpose exception
D) The admission exception
E) The payment or delivery and acceptance exception

Answer 2

C

Question 3

If an oral agreement is made to be performed within one year and if there is even a slight chance of carrying out the agreement completely within one year, the oral agreement would be enforceable.

Answer 3

True

Question 4

In Wilson Floors Co. v. Scotia Park, Ltd., and Unit, Inc., the court made a judgment based on the fact that the bank had no contractual duty to Wilson despite its oral guarantee according to the Statute of Frauds.

Question 5

Chrissle wishes to purchase on credit a coat at SM's Fine Furs. SM's thinks Chrissle's creditworthiness is somewhat shaky. So Chrissle's friend Mini promises SM's that if the store extends credit to Chrissle, Mini will pay whatever balance is due should Chrissle default. In which of the following is an oral agreement binding?

A) Mini asks SM's to send the coat to Chrissle for her anniversary and that she will pay for it.
B) Mini promises to work as a cleaner on weekends at SM's should Chrissle default.
C) Mini agrees to pay Chrissle's debt if SM's give a 10 percent discount on a jacket to her.
D) Mini wants the coat for herself but cannot, so she proposes that Chrissle buy it.
E) Mini agrees to pay Chrissle's debt if Chrissle bakes her a cake.

Question 6

According to the main purpose doctrine, _____.

A) a promise to pay the debt of another need not be writing to be enforceable if the promisor was motivated by a desire for advantage or benefit
B) there should be a pattern of behavior between parties showing how they intend their relationship to work
C) there should be a systematic and uniform conduct in which parties engage after they enter into a contract
D) the Statute of Frauds dispenses with a writing requirement when one party performs his or her part of the contract
E) if at its making, a contract could have been performed in one year, no writing is required

Question 7

Course of dealing is a systematic and uniform conduct in which parties engage after they enter into a contract.

Question 8

According to the part performance doctrine, acts taken in reliance are not necessary partial performances.

Question 9

For an agreement to be covered by the statute, there must have been an obligation before the decedent's death.

Question 10

The parol evidence rule does not prevent a showing that a fact stated in a contract is untrue.

Question 11

Integrated contract is a customary way of doing business that may be used to inform parties' contractual intentions.

Question 12

The Statute of Frauds is a legislative intrusion into the common law of contracts.

Question 13

A person who promises to act or pay upon the default of another is known as an) _____.

A) creditor
B) promisee
C) surety
D) principal
E) primary obligor

Question 14

In an oral contract to sell a land, the buyer has paid the purchase price. However, if the seller refuses to transfer title, the buyer may recover the purchase price.

Question 15

A clause that is separately negotiated and added to a contract will be counted as more significant than a standard term in a form contract.

Question 16

The UCC provides that an oral contract for goods in excess of $350 will be upheld if payment has already been made and accepted.

Question 17

Usage of trade is a pattern of behavior between parties showing how they intend their relationship to work.

Question 18

A force of ambiguity can be used to alter, vary, or change the contract's meaning.

Question 19

If an agreement contains several promises, the unenforceability of one does not necessarily render the others unenforceable.

Question 20

A contract that remains wholly executory, even though enforceable because in writing, may be rescinded orally in most states.

Question 21

The usage of trade is a _____.

A) pattern of behavior between parties showing how they intend their relationship to work
B) systematic and uniform conduct in which parties engage after they enter into a contract
C) customary way of doing business that may be used to inform the parties' contractual intentions
D) promise to pay a debt which need not be in writing if the promisor was motivated by a desire for advantage or benefit
E) contract term stating that the written agreement contains the parties' full understanding and intent

Question 22

What are the benefits of written contracts over oral ones?

Question 23

Which of the following is true with regard to the parol evidence rule?

A) It applies only to the oral discussions that do not make it into the final written agreement.
B) The rule has no bearing on events that have transpired before the contract in dispute was signed.
C) The rule is concerned only about agreements reached subsequently that may alter the terms of an existing contract.
D) It does not negate all prior agreements or statements.
E) The rule applies only in cases where the parties never intended the written contract to be their full understanding and intend it to be partly oral.

Question 24

Which of the following is an exception to the UCC's Statute of Frauds requirement?

A) Main purpose exception
B) Part performance doctrine
C) Possibility test
D) Agreements of executor or administrator
E) The admission exception

Question 25

According to the rule of interpretation, which of the following is true?

A) Writing is interpreted as a whole, without undue attention to one clause.
B) Courts prefer the items in the order listed: course of dealing, usage of trade, express terms, and course of performance.
C) If an amount is given in words and figures that differ, the figures control.
D) Typing controls over writing; writing controls over printed forms.
E) Written contracts guarantee escape from disputes and litigation.

Question 26

An integrated contract is _____.

A) something that has to happen before the obligation to perform the contract ripens
B) a promise ancillary to an original promise
C) a customary way of doing business that may be used to inform the parties' contractual intentions
D) a contract that comprehends the parties' full understanding
E) an agreement after marriage between spouses concerning division or ownership of their property

Question 27

Which of the following is true in oral rescission?

A) Insufficiently written contracts governed by the Statute of Frauds are unenforceable.
B) For a fully performed contract unenforceable under the Statute of Frauds, some restitution will be available.
C) If a title has already passed to the buyer under a written agreement that satisfies the statute, the contract cannot be rescinded.
D) If there has been a material change of position in reliance on the contract, oral agreements to rescind are enforceable.
E) Contracts governed by the Statute of Frauds cannot be modified orally if the resulting contract, taken as a whole, falls outside the statute.

Question 28

Which of the following led the court to decide upon its judgment in the Wilson Floors Co. v. Scotia Park, Ltd., and Unit, Inc. case?

A) The project Unit fell behind in making payments to Wilson for its completed work in the spring of 1973.
B) The bank had induced Wilson to remain on the job and rely on its credit for future payments.
C) Foreclosing on the mortgage and hiring a new contractor would have resulted in higher costs.
D) The bank had no contractual duty to Wilson despite its oral guarantee according to the Statute of Frauds.
E) The bank representative had merely advised the subcontractors that adequate funds would be available to complete the job.

Question 29

Explain the memorandum concerning the agreement of the statute's purpose to evidence the making of the contract according to the common law.

Question 30

According to the common law, which of the following would make a written contract incomplete?

A) The words need not appear in a formal document so long as it is signed by both the parties.
B) The essential terms of promises to be performed must be written out; all details need not be.
C) If an essential term is missing, it cannot be enforced, unless it can be inferred by rule of law.
D) The parties must be named in the writing in a manner sufficient to identify them.
E) The consideration for the promise need not be stated in writing, even if it has already been given.

Question 31

Under Section 2-202 of the UCC, _____.

A) a course of performance is defined as "a sequence of previous conduct between the parties to a particular transaction which is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct."
B) a usage of dealing is "any practice or method of dealing having such regularity of observance in a place, vocation or trade as to justify an expectation that it will be observed with respect to the transaction in question."
C) a purchase agreement for a factory's monthly output is a course of performance.
D) a course of dealing is the conduct of a party in response to a contract that calls for repeated action
E) an undertaking to wash a neighbor's car weekly is a course of dealing

Question 32

A contract term stating that the written agreement contains the parties' full understanding and intent is known as _____.

A) integrated contract
B) merger clause
C) main purpose doctrine
D) reformation
E) non-disclosure clause