Deck 14: Written Contracts

Question 1

Rick and Rita ordered as party favors for their wedding 500 t-shirts personalized a the young couple's photograph from Daniel Graphics.Daniel Graphics had just finished printing the shirts when Rick called and canceled the order.Daniel Graphics will be able to enforce the agreement even though there was no writing.

Answer 1

True

Question 2

The Uniform Commercial Code provides that,under certain circumstances,a merchant may be liable on a written contract,even though that merchant has NOT signed it.

Answer 2

True

Question 3

A contract that cannot be performed within one year is void if it is not written.

Answer 3

False

Question 4

In order to satisfy the statute of frauds,a writing must:

A)be a formal written document drafted by an attorney.
B)be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.
C)be notarized.
D)All of the above.

Question 5

For statute of frauds purposes,an interest in land includes:

A)a house.
B)a real estate mortgage.
C)an easement.
D)All of the above.

Question 6

Hannah orally agrees to sell her house to Brett for $175,000.If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay,most courts will not enforce the contract since it was not in writing.

Question 7

Alice is president and sole shareholder of Best Fabrics,Inc.Best Fabrics,Inc.wishes to borrow money,but to do so,the bank requires Alice to orally agree to pay the debt of the corporation if Best Fabrics,Inc.cannot.Alice's guarantee to repay is:

A)unenforceable under the parole evidence rule.
B)enforceable because of the leading object rule.
C)enforceable because there is an insurable interest.
D)unenforceable because it is a collateral promise.

Question 8

Either party may demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds.

Question 9

Robin and Bellman,both merchants,orally agree to a contract for the sale of $5000 of accessories.Bellman,the buyer,sends to Robin,the seller,a written confirmation of the sale,which is sufficient against Bellman under the statute of frauds and which Bellman signs.Robin fails to perform the contract and does not ship out the goods.Bellman sues.This contract is:

A)unenforceable, because Robin did not sign any contract.
B)unenforceable, because Bellman did not pay for the goods.
C)enforceable, because Bellman sent the written confirmation of the sale, thereby partially performing the contract.
D)enforceable even without Robin's signature because both parties are merchants.

Question 10

Raymond agrees to transfer an easement right to Sandra for $1,000.This contract is not within the statute of frauds and therefore doesn't need to be in writing to be enforceable.

Question 11

In the Seton Co.v.Lear Corp.,the federal Court of Appeals applied the merchant exception rule to hold that a confirming memo between merchants formed a contract.

Question 12

Bry,Inc.and Gangl Co.entered into an oral agreement for the sale of 3,000 sweaters.Both parties performed as required under the contract.Bry delivered the sweaters and Gangl accepted and paid for them.Since the contract is fully executed,it makes no difference that it was oral.

Question 13

Amanda,a recent university graduate,needed a car to get to her new job.To help Amanda secure a loan for the car,Ted,a friend,agreed to pay the loan should Amanda default.Ted's promise to pay the loan is a collateral promise.His promise must be in writing to be enforceable.

Question 14

Under the statute of frauds,the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party,the subject matter of the agreement,and all of the essential terms and promises.

Question 15

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred.The buyer,Willis,is to have possession immediately.Willis pays Leslie $25,000,takes possession of the land,and starts building a house.At the time of closing,Willis has made a substantial beginning on the house.However,Leslie refuses to transfer the title,claiming the oral contract is not enforceable.This contract is:

A)enforceable, because the statute of frauds does not apply to this interest in land.
B)unenforceable, because there is no writing signed by Leslie.
C)enforceable, because Willis has partially performed the oral contract and made improvements on the land.
D)unenforceable, because the parole evidence rule applies.

Question 16

Ramona orally agreed to work for Brahma,Inc.for the rest of her life for $50,000 per year.This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

Question 17

Sweet Plantation,Inc.made a written contract with Candy,Inc.whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound.A dispute arose as to how much sugar Sweet is to supply.The parole evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

Question 18

parole evidence refers to anything (other than the written contract itself)that was said,done,or written before or as the parties signed the contract.

Question 19

Any contract involving a sale of goods of $500 or more must be in writing to be enforceable.

Question 20

Patrick owned an acre of land which was being divided into building lots.Nancy was interested in purchasing the corner lot.In a signed writing,Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash,payable on April 30,2009." This writing is sufficient under the statute of frauds to make the contract enforceable.

Question 21

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land.Since neither of them had any paper with them,Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street,St.Joseph,Minnesota,U.S.A.for the price of $4,500 per acre.Transfer of title,payment,and possession to take place on May 1,2008." Abyan signed the napkin.On May 1,2008,Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price.If Derek sues Abyan for the price of the land,the most likely result will be:

A)Abyan will win because the writing is not sufficient under the statute of frauds.
B)Derek will win because the writing is sufficient under the statute of frauds.
C)Abyan will win because Derek did not sign the writing.
D)Derek will win because the statute of frauds does not apply to this situation.

Question 22

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

A)UCC requires only the signature of both parties.
B)UCC does not require all the terms of the agreement to be in writing.
C)common law requires only an indication that the parties reached an agreement.
D)common law requires only the signature of the defendant and the quantity of goods being sold.

Question 23

On August 15th,Claude agrees to a consulting job for Irvin Plastics Co.for 10 months.The job is scheduled to begin on October 1st.Under the statute of frauds:

A)the contract is not required to be in writing as the consulting job is for less than a year..
B)the contract is required to be in writing to be enforceable because of the one-year rule.
C)the parole evidence rule renders the contract voidable.
D)the lack of a writing renders the contract void.

Question 24

Abby dies,and her good friend,Claire is appointed to administer Abby's estate.Abby's house was in poor condition,so Claire orally hired a contractor to make repairs.Claire also orally promised that if the estate could not pay the repair bill,he would pay it even though he does not live in the house and has no entitlement under Abby's estate.The estate does not pay the repair bill.Who can the contractor collect from,if anyone?

A)The contractor can collect from either the estate or Claire.
B)The contractor can collect from the estate only.
C)The contractor can collect from Claire only.
D)The contractor must collect from the estate first, and then collect any deficiency from Claire.

Question 25

In the case Mayo v.North Carolina State University,the Court ruled that:

A)NCSU could rely on the parole evidence rule to establish its policy.
B)Mayo could use extra evidence outside the written documents to prove the prepayment.
C)Neither party could use the parole evidence rule explain the terms of the agreement.
D)their contract was void due to the lqck of a writing.

Question 26

Martin,Human Resources Director for Spring Co.,sent Lynn the following signed letter: "This letter confirms our offer to you.We will pay for your moving expenses,up to $1,500.Your starting date will be February 1,and you will become eligible for health care benefits as of May 1.You will receive a starting salary of $36,500 annually,with reviews and eligibility for increases at six months,12 months,and annually thereafter.Vacation will be for two weeks a year after one year." Spring fired Lynn eight months after she started to work,and Lynn sued arguing the letter constituted a memorandum of an oral contract for employment for five years.Is the letter sufficient to satisfy the statute of frauds?

A)Yes, to satisfy the statute of frauds, a memorandum is sufficient if it evidences an oral contract between the parties and is signed by the defendant.
B)Yes, the memorandum is signed by the defendant and states with reasonable certainty the subject matter and essential terms of the agreement.
C)No, to satisfy the statute of frauds, the memorandum must contain all essential terms of the contract.
D)No, the letter was not formal enough to satisfy the statute of frauds.

Question 27

Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way)promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?

A)The promise made by Ethel's Exercise World to buy the weight machines.
B)Moneybag's promise to pay if Ethel's Exercise World doesn't.
C)Both Moneybag's promise and Ethel's Exercise World's promise.
D)None of the promises in this problem need to be in writing.

Question 28

Ryan places a telephone order for a new bookshelf from Jones Furniture,Inc.The price of the bookshelf is $990.The clerk who takes the order sends Ryan a copy of the invoice.The next week,Ryan calls back and tries to cancel his order.

A)Ryan cannot cancel the order because a contract formed over the phone is valid.
B)Ryan cannot cancel the order, as the invoice is considered a written confirmation of the agreement.
C)Ryan can cancel the order; the invoice is unenforceable against him, as he did not sign the invoice.
D)Ryan can now cancel the bookshelf has not been delivered yet.

Question 29

Jennifer has been wanting to purchase Wayne's first edition of her favorite book for a few years.Wayne has been reluctant to sell it.One evening he said to Jennifer,"Okay,I'll sell the book for $750." Jennifer replied,"Great.I accept." The agreement was not reduced to writing,but Wayne and Jennifer did shake hands.Two days later,Jennifer sent Wayne a letter outlining the terms of the agreement,and stating that she would deliver $750 cash according to the agreement before the end of the week.The letter was signed,"Best regards,Jennifer." Later,Jennifer had second thoughts - $750 was quite an amount - and refused to go through with the purchase.Nothing had been exchanged at this point.What can Wayne do?

A)He cannot enforce the contract against Jennifer because he did not sign the letter.
B)He cannot enforce the contract against Amy because the contract was not reduced to writing whereas it was for over $500.
C)He can enforce the contract against Jennifer because the signed letter satisfies the statute of frauds.
D)He can enforce the contract because, as neither of them is a merchant, the statute of frauds doesn't apply.

Question 30

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

A)an integration clause.
B)a statute of frauds clause.
C)parole evidence.
D)an exculpatory clause.

Question 31

Which of the following promises ordinarily must be in writing to be enforceable?

A)Promises made as a part of a prenuptial agreement.
B)The agreement to sell a car for $1500.
C)The promise by an executor of an estate to pay a debt of the decedent.
D)All of the above.

Question 32

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie.Bonnie has raised the parole evidence rule as an objection to Scott's testimony.In which of the following circumstances will Scott not be able to introduce the oral evidence?

A)The contract has an integration clause in it and Scott's point of contention is covered in detail in the contract, although not to his favor.
B)There was a mutual mistake of a material fact when the contract was entered into.
C)The oral evidence is introduced to clarify the meaning of an ambiguous term used in the written contract.
D)Scott claims that he was defrauded into entering into the contract and wants to testify about the intentional misrepresentations of material facts.

Question 33

Vicki entered into a written contract to buy a car from Valley Motors.During the negotiations,the sales representative said that the car had a two-year full warranty.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty.Two months after Vicki took delivery of the car,she discovered that the transmission needed to be replaced.Vicki claimed that it was covered by the full warranty.Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

A)No.The parole evidence rule will most likely exclude any evidence of the discussion of the warranty.
B)Yes.The leading object rule will allow evidence as to the discussion of the warranty.
C)Yes.The evidence is needed because the contract is ambiguous.
D)Yes.The contract was fully executed.

Question 34

When a contract falls within the statute of frauds but is not reduced to a writing,the contract is:

A)illegal.
B)unenforceable.
C)void.
D)voidable.

Question 35

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant.Robert agreed to do so,but requested a written contract.Alfred assured him that the company attorney would prepare such a contract as soon as possible,but Alfred needed Robert to start at once.Accordingly,Robert sold his house,moved his family,and commenced to work for Alfred.He was fired without cause two months later.No written contract was ever executed.Can Robert enforce Alfred's oral promise?

A)No.This was a contract for longer than one year.Without a writing it violates the statute of frauds and is not enforceable.
B)Maybe.Robert should go to court under the theory of promissory estoppel.Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise.
C)Yes.This is a partial performance of the sale of goods.Robert can recoup the loss he took on the sale of his house.
D)Yes.This involves the special manufacturing of goods.This situation involves an exception to the UCC statute of frauds.

Question 36

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

A)Totally integrated contracts.
B)Incomplete contracts.
C)Ambiguous contracts.
D)All of the above.

Question 37

Under the statute of frauds,which of the following statements about a contract for an interesting land is true?

A)The agreement is void if not written.
B)It only needs to be in writing if its value is over $500.
C)It needs to be in writing to be enforceable.
D)It only needs to be in writing if it contains a collateral.

Question 38

Which of the following would suffice for a signature on a writing under the statute of frauds?

A)A stamped signature.
B)A retinal scan.
C)A name keyed at the bottom of an e-mail.
D)Any of the above would suffice.Judges define "signature" very broadly.

Question 39

Under the UCC,which of the following contracts may be enforceable,even without a written memorandum?

A)The seller is specially manufacturing the goods for the buyer.
B)The seller admits in court that there was a contract.
C)The seller has delivered the goods.
D)All of the above.

Question 40

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should:

A)ignore the confirmation.
B)call the seller and object to the confirmation as soon as she gets back from her two-week vacation.
C)object to the confirmation in writing within 10 days.
D)return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods.

Question 41

Thomas Reep,was the president of First National Bank in Clarksville.R.L.Moore approached Reep requesting the bank to open an account in the name of Texas Continental Express,Inc.,a corporation owned by his two sons.R.L.had no affiliation with the corporation nor any financial interest in it.R.L.promised Reep that he would open several accounts in First National that would more than amount to the business of his sons.R.L.assured Reep that if anything came up in connection with the sons' account,Reep was to contract him directly.Upon these conditions,First National proceeded to furnish a regular checking account and bank draft services for Texas Continental.Sometime later,First National paid two drafts overdrawing the account by $448,942.When Reep contacted R.L.about the overdrawn account,R.L.assured Reep that money would be deposited in the account.When Reep called back a few days later to find out why the money had not been deposited,R.L.informed Reep that his wife had suffered a nervous breakdown the night before and the deal was off.First National Bank brought suit to enforce R.L.'s promise to pay the debts of Texas Continental.What is the likely outcome?

Question 42

Explain the reason behind having a statute of frauds and give arguments for and against having such a statute.

Question 43

List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.

Question 44

J.T.Tidwell entered into an oral contract with Robert Anthony for the purchase of 100 head of cattle at a price of $500 each.When the oral contract was made,Tidwell gave Anthony a check for $1000 as "earnest money or good faith money towards the purchase of the cattle." Anthony sold the cattle to someone else.Tidwell sued,asking the court to either compel Anthony to perform the contract or to pay damages that Tidwell suffered from the alleged breach of contract.What issues do you see and how would you resolve those issues?

Question 45

The Uniform Electronic Transmission Act (UETA):

A)declares that a contract or signature may not be denied enforceability just because it is in electronic form.
B)was passed by Congress in 2002.
C)creates a safe cyberspace environment in which business communications cannot be intercepted or fraudulently altered.
D)All of the above.

Question 46

Tony signed a contract agreeing to purchase a used,high-powered boat for $10,000.Prior to signing the contract,the sales representative explained that the boat motor was guaranteed for six months for all labor and parts.The written contract contained nothing about the warranty; however,it did have an integration clause in it.Tony had problems with the boat motor,causing expensive repairs.Tony returned the boat to the sales representative for the repairs,only to learn the salesman denied knowing anything about a six-month warranty.If Tony sues,discuss the likely outcome.

Question 47

On October 24th,Jake applied for a job at a store.On October 27th,he receives a call from Martin,the owner of the store,offering him the job.Martin says: "you will work for us for one year.If you agree,you will start on November 1st and will receive a salary of $500 per week".Jake answers: "Thank you.I accept!" Three months after starting the job Jake was fired without cause.Will Jake be successful in an action brought against the employer for breach of contract?