Question 1

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

Accepted Answer

A) True 
 B)False

Question 2

The transfer of the right to use real property for a specified period of time is known as a lease.

Accepted Answer

A) True 
 B)False

Question 3

The ________ states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.

Accepted Answer

A)  merger clause 
B)  leading object exception 
C)  collateral contract rule 
D)  parol evidence rule

Question 4

Section 2A-201(1) of the Uniform Commercial Code (UCC) states which of the following?

Accepted Answer

A)  All lease contracts must be in writing. 
B)  Lease contracts involving payments of $1,000 or more must be in writing. 
C)  All sales contracts must be in writing. 
D)  Sales contracts involving payments of $500 or more must be in writing.

Question 5

Good Faith Consultants partnered with QuickFind IT Solutions for a period of six months. After three months, they wanted to extend the contract by two years. According to the Statute of Frauds, which of the following is true of the contract?

Accepted Answer

A)  The modification to the duration of the contract should be in writing. 
B)  A new contract must be formed. 
C)  The contract can be oral both before and after modification. 
D)  Only the original contract should be in writing.

Question 6

Santos told his friend Ernesto that he would sell Ernesto his car for $5,000. However, on the day of the sale, Santos refused to sell the car for the agreed-upon price and demanded more money. Which of the following statements is true in this scenario?

Accepted Answer

A)  Ernesto can sue Santos as their oral sales contract was binding. 
B)  Santos has violated Section 2-201(1) of the Uniform Commercial Code (UC
C) . 
C)  The oral contract to trade a car for $5,000 is not binding, according to the Uniform Commercial Code (UC
C) . 
D)  Santos has violated Section 2A-201(1) of the Uniform Commercial Code (UC
C) .

Question 7

The signature of the person who is enforcing the contract is necessary.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of interpreting contract words and terms?

Accepted Answer

A)  Where a preprinted form contract is used, preprinted words prevail over typed words. 
B)  Preprinted words prevail over handwritten words. 
C)  Specific terms are presumed to qualify general terms. 
D)  If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

Question 9

Which of the following contracts is required to be in writing in most states?

Accepted Answer

A)  contracts for the sale of goods for $100 
B)  contracts for the lease of goods with payments of $500 
C)  promises to write a will 
D)  contracts falling under the promissory estoppel

Question 10

Section 2-201(1) of the Uniform Commercial Code (UCC) states that ________.

Accepted Answer

A)  all lease contracts must be in writing 
B)  lease contracts involving payments of $1,000 or more must be in writing 
C)  all sales contracts must be in writing 
D)  sales contracts involving payments of $500 or more must be in writing

Question 11

The ________ says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Accepted Answer

A)  merger clause 
B)  common law of contracts 
C)  doctrine of equity 
D)  equal dignity rule

Question 12

Which of the following phrases explains the term lease?

Accepted Answer

A)  an interest in real property given to a lender as security for the repayment of a loan 
B)  an interest in real property for a person's lifetime 
C)  the transfer of the right to use real property for a specified period of time 
D)  a right to use someone else's land without owning or hiring it

Question 13

________ stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Accepted Answer

A)  Promissory estoppel 
B)  Merger clause 
C)  Main purpose exception 
D)  Leading object exception

Question 14

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

Accepted Answer

A) True 
 B)False

Question 16

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 17

Trees, crops, minerals, and timber are barred from being included in contracts involving interests in real property.

Accepted Answer

A) True 
 B)False

Question 18

The primary contract in a guarantee situation is between the debtor and the creditor.

Accepted Answer

A) True 
 B)False

Question 19

A(n) ________ occurs when one person agrees to answer for the debts or duties of another person.

Accepted Answer

A)  main purpose exception 
B)  mortgage 
C)  guaranty contract 
D)  implied integration

Question 20

A life estate will be transferred to another party in the event of the holder's death.

Accepted Answer

A) True 
 B)False

Exam 14: Statute of Frauds and Equitable Exceptions

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

The transfer of the right to use real property for a specified period of time is known as a lease.

The ________ states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.

Section 2A-201(1) of the Uniform Commercial Code (UCC) states which of the following?

Good Faith Consultants partnered with QuickFind IT Solutions for a period of six months. After three months, they wanted to extend the contract by two years. According to the Statute of Frauds, which of the following is true of the contract?

Santos told his friend Ernesto that he would sell Ernesto his car for $5,000. However, on the day of the sale, Santos refused to sell the car for the agreed-upon price and demanded more money. Which of the following statements is true in this scenario?

The signature of the person who is enforcing the contract is necessary.

Which of the following statements is true of interpreting contract words and terms?

Which of the following contracts is required to be in writing in most states?

Section 2-201(1) of the Uniform Commercial Code (UCC) states that ________.

The ________ says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Which of the following phrases explains the term lease?

________ stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

If there is an ambiguity in a contract, the ambiguity will be resolved in favor of the party who drafted the contract.

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Trees, crops, minerals, and timber are barred from being included in contracts involving interests in real property.

The primary contract in a guarantee situation is between the debtor and the creditor.

A(n) ________ occurs when one person agrees to answer for the debts or duties of another person.

A life estate will be transferred to another party in the event of the holder's death.