Question 1

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds,such person:

Accepted Answer

A)   can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract.
B)   can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services.
C)   cannot recover the value of the services because they were rendered under a unilateral mistake of law.
D)   can have the party receiving the services arrested for obtaining property by false pretenses. B

Question 2

The statute of frauds:

Accepted Answer

A)   requires full disclosure in the case of consumer sales on credit.
B)   requires a seller of real estate to obtain a broker's license.
C)   specifies the punishment of perjury.
D)   requires that a contract for the sale of land be evidenced by a writing. D

Question 3

A promise to pay an attorney a fee owed by a third person can be enforced without a writing.

Accepted Answer

A) True 
 B)False  False

Question 4

When persons enter into an agreement,it is presumed that they intent the agreement to have some effect.

Accepted Answer

A) True 
 B)False

Question 5

Any of the following could satisfy the requirement of a writing under the statute of frauds except:

Accepted Answer

A)   a note.
B)   a memorandum.
C)   a contract.
D)   part performance.

Question 6

When interpreting an integrated contract,a court will exclude parol evidence in all of the following cases except:

Accepted Answer

A)   to add to the terms of a contract.
B)   to modify the terms of a contract.
C)   to contradict the terms of a contract.
D)   to show fraud.

Question 7

An oral contract to sell a house is binding if:

Accepted Answer

A)   the agreement is witnessed by a member of the clergy.
B)   there is a tape recording of the agreement.
C)   the buyer paid the price and received the deed of conveyance.
D)   the seller is a merchant.

Question 8

When an insurance policy is ambiguous,the policy is interpreted:

Accepted Answer

A)   against the insurer.
B)   in favor of the insurer.
C)   according to the dictionary meaning of the words.
D)   according to the meaning of the words in the insurance industry.

Question 9

The statute of frauds applies to promises to answer for another party's debt,but does not apply to a promise to answer for another party's default.

Accepted Answer

A) True 
 B)False

Question 10

The parol evidence rule generally precludes testimony that would contradict a complete written contract.

Accepted Answer

A) True 
 B)False

Question 11

When a contract proves to be a bad bargain:

Accepted Answer

A)   the injured party is never bound by the terms of the contract.
B)   courts will always imply terms that are necessary to avoid hardship.
C)   parties are generally still bound by the terms of the contract.
D)   the contract must be rewritten.

Question 12

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property,specifically:

Accepted Answer

A)   goods.
B)   chattel paper.
C)   real property.
D)   prenuptial agreements.

Question 13

The writing required by the statute of frauds in the case of a contract for the sale of land must:

Accepted Answer

A)   be addressed to the other party to the contract.
B)   be made with the intent to create a writing to satisfy the statute of frauds.
C)   be signed at the end of the writing.
D)   describe the land to be sold.

Question 14

A contract is created by which the terms are stated to be for consideration in the amount of $3,000.If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

Accepted Answer

A)   the contract will be interpreted to be for $3,000.
B)   the contract will be interpreted to be for $4,000.
C)   there is a contract but the courts will not specify the dollar amount, as a conflict exists.
D)   a compromise settlement amount of $3,500 will be used.

Question 15

Under the majority view,a contract that does not satisfy the statute of frauds is not enforceable.

Accepted Answer

A) True 
 B)False

Question 16

The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 17

The parol evidence rule does not apply to changes made after the signing of the contract.

Accepted Answer

A) True 
 B)False

Question 18

An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was signed by electronic signature.

Accepted Answer

A) True 
 B)False

Question 19

Franklin,a hobby-shop supplier,and Gordon,a hobby-shop owner,entered into a contract that provided that Franklin would sell Gordon fifty World War II battleship models at Franklin's cost of $2.95 each,plus a reasonable profit.Gordon brought suit to enforce the contract against Franklin,who refused to deliver the models.Franklin claimed that there was no contract because of indefiniteness.Is Franklin correct?

Accepted Answer

The answer of Franklin,a hobby-shop supplier,and Gordon,a hobby-shop owner,entered into...

Question 20

The defense of noncompliance may not be raised by:

Accepted Answer

A)   the parties to the oral contract.
B)   third parties such as an insurance company or the IRS.
C)   a promisor on the original contract.
D)   a promisee on the original contract.

Exam 16: Writing, Electronic Forms, and Interpretation of Contracts

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds,such person:

The statute of frauds:

A promise to pay an attorney a fee owed by a third person can be enforced without a writing.

When persons enter into an agreement,it is presumed that they intent the agreement to have some effect.

Any of the following could satisfy the requirement of a writing under the statute of frauds except:

When interpreting an integrated contract,a court will exclude parol evidence in all of the following cases except:

An oral contract to sell a house is binding if:

When an insurance policy is ambiguous,the policy is interpreted:

The statute of frauds applies to promises to answer for another party's debt,but does not apply to a promise to answer for another party's default.

The parol evidence rule generally precludes testimony that would contradict a complete written contract.

When a contract proves to be a bad bargain:

The Uniform Commercial Code contains a statute of frauds rule relating to sales of personal property,specifically:

The writing required by the statute of frauds in the case of a contract for the sale of land must:

A contract is created by which the terms are stated to be for consideration in the amount of $3,000.If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

Under the majority view,a contract that does not satisfy the statute of frauds is not enforceable.

The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.

The parol evidence rule does not apply to changes made after the signing of the contract.

An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was signed by electronic signature.

The defense of noncompliance may not be raised by: