Deck 15: Written Contracts

Question 1

A primary obligation is a promise to pay another's debt only if that party fails to pay. 

Answer 1

False

Question 2

A contract in which a party assumes a primary obligation must be in writing to be enforceable. 

Answer 2

False

Question 3

A contract must be in writing to be enforceable unless its performance is impossible within one year. 

Answer 3

False

Question 4

A contract in which a party assumes a secondary obligation must be in writing to be enforceable. 

Question 5

Under the Statute of Frauds,fixtures,such as buildings,growing crops and minerals,are treated as real property. 

Question 6

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

Question 7

Every state has a statute that stipulates what types of contracts must be in writing.

Question 8

The primary purpose of the Statute of Frauds is to ensure that all parties to a contract understand all the terms of the contract.

Question 9

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

Question 10

A contract that is oral when it is required to be in writing is normally void.

Question 11

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year. 

Question 12

The Statute of Frauds operates as a defense to the enforcement of any contract for the sale of land. 

Question 13

A contract must be in writing to be enforceable if the contract makes performance possible within any definite period of time. 

Question 14

A prenuptial agreement must be in writing to be enforceable. 

Question 15

Under the Statute of Frauds,all contracts must be in writing to be enforceable.

Question 16

Prenuptial agreements are agreements made during a wedding ceremony that define each partner's duties to one another during the marriage.

Question 17

All collateral promises must be in writing to be enforceable. 

Question 18

An oral contract for a transfer of land is always enforceable. 

Question 19

A written contract for a transfer of land is usually enforceable. 

Question 20

To be enforceable,a contract for a sale of goods priced at $500 or more should be in writing. 

Question 21

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.The contract must be in writing if the pecans cost​ 

A) ​$100. 
B) ​$150. 
C) ​$250. 
D) ​$500.

Question 22

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

Question 23

There are exceptions to the Statute of Frauds. 

Question 24

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise. 

Question 25

In some states,an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel. 

Question 26

Larue buys an iPod for $150 and a new laptop for $1,200,and signs a one-year employment contract for a $4,800 monthly salary to start at the beginning of the next month.The Statute of Frauds covers​ 

A) ​the employment contract, and the laptop and iPod purchases. 
B) ​the employment contract and the laptop purchase only. 
C) ​the employment contract only. 
D) ​the laptop and iPod purchases only.

Question 27

To be enforceable,a memorandum evidencing an oral contract must include all essential terms. 

Question 28

Parol evidence includes testimony about communications between the parties that are not contained in the contract itself.

Question 29

An oral contract for a sale of land can sometimes be enforced if partial performance has taken place.

Question 30

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard.This contract​ 

A) ​is prohibited. 
B) ​must be oral to be enforceable. 
C) ​must be in writing to be enforceable. 
D) ​must be oral and in writing to be enforceable.

Question 31

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

Question 32

Written evidence or an electronic record of a contract for a sale of goods priced at $50 or more is required. 

Question 33

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

Question 34

To be enforceable,a writing evidencing an oral contract must have been signed by the party who seeks to enforce it. 

Question 35

An integrated contract is the final embodiment of the terms of an agreement. 

Question 36

Chemico,Inc.,and Petro Products Corporation enter into an oral contract in which Chemico agrees to sell a chemical refinery and the land on which it is situated to Petro.Under the Statute of Frauds,this contract is enforceable by​ 

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

Question 37

If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made,the contract will be enforceable. 

Question 38

An oral contract may be enforceable if there is no way to avoid injustice except to enforce the promise. 

Question 39

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

Question 40

Air Flo,Inc.,and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years.This contract is enforceable by​ 

A) ​Air Flo. 
B) ​Banyan Grove. 
C) ​any third party, such as a HVAC supplies provider. 
D) ​none of the choices.

Question 41

Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,this contract is most likely enforceable against​ 

A) ​neither party. 
B) ​Millet Grains only. 
C) ​Corn Cereals only. 
D) ​Millet Grains and Corn Cereals, at least to the extent of the performance.

Question 42

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW)for REW's sale to Dick's of a single-spindle milkshake mixer for $300.Assuming the terms can be proved,the contract is enforceable by​ 

A) ​the seller or the buyer. 
B) ​the manufacturer of the mixer. 
C) ​any third party with an interest in the deal, such as one of Dick's customers. 
D) ​none of the choices.

Question 43

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn.This promise is enforceable​ 

A) ​only if it is in writing. 
B) ​only if the amount of the investment is more than $500. 
C) ​only if Glenn agrees to marry Flossy. 
D) ​under no circumstances.

Question 44

Wild Rides Theme Park owes both RollercoasterRepair,Inc.and Hot Dog Harry money.RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides.This contract is enforceable by​ 

A) ​no party. 
B) ​any party. 
C) ​Wild Rides only. 
D) ​RollercoasterRepair only.

Question 45

Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
Refer to Fact Pattern 15-1.The transaction between Millet Grains and Corn Cereals falls within the provision of the Statute of Frauds involving​ 

A) ​collateral promises. 
B) ​the one-year rule. 
C) ​sales of goods. 
D) ​secondary contracts.

Question 46

Retail Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods.To be enforceable,the contract should be in writing if the goods are valued at more than​ 

A) ​$5. 
B) ​$15. 
C) ​$50. 
D) ​$500.

Question 47

Walt promises to pay for orthodontist services provided by Orson to Joyce.Walt does not receive any personal benefit for the promise.To be enforceable,the promise must be in writing if​ 

A) ​Walt promises to pay only if Joyce does not pay. 
B) ​Walt assumes direct financial responsibility for the cost. 
C) ​Orson's services will be provided in installments with a separate payment for each installment. 
D) ​a different orthodontist will perform some of the services.

Question 48

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW's Living Opportunities Center for eighteen months.This contract is enforceable by​ 

A) ​ActioNOW. 
B) ​Becca. 
C) ​any third party, such as ActioNOW's clients. 
D) ​none of the choices.

Question 49

Colette and Dealership Auto Sales Company enter into an oral contract under which Dealership Auto agrees to pro-vide Colette with lifetime employment.This contract may be enforceable by​ 

A) ​Colette only. 
B) ​Dealership Auto only. 
C) ​any interested third party, such as a Dealership Auto customer. 
D) ​either Colette or Dealership Auto.

Question 50

Macro Marketing,Inc.,and Nature Foods Corporation (NFC)discuss the terms of a contract.Macro faxes NFC a memo on Macro's letterhead that summarizes the items on which they agree.NFC begins to perform,but Macro refuses to pay.Between Macro and NFC,the memo is​ 

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

Question 51

Abner tells a representative of Brass & Woodwind Musical Instruments,Inc.,that he will pay for Claudia's trumpet if she does not.Abner does not secure any personal benefit for this promise.Abner's oral promise is enforceable as a contract by​ 

A) ​Brass & Woodwind Musical Instruments, Inc. 
B) ​Claudia. 
C) ​Abner. 
D) ​none of the choices.

Question 52

On Monday,Merlin buys a tablet for $500 from a Pads & Pods store.On Tuesday,he returns to the store and buys a GPS device for $200.On Wednesday,he downloads $100 worth of tunes from singsong.com.To be enforceable,the contract must be in writing for the purchase of ​ 

A) ​the tunes, the GPS device, and the tablet. 
B) ​the GPS device and the tablet only. 
C) ​the tablet only. 
D) ​the tunes only.

Question 53

Guardian Security,Inc.,and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them.This contract may be enforceable by​ 

A) ​Guardian Security only. 
B) ​Hedge Fund only. 
C) ​any interested third party, such as a Hedge Fund shareholder. 
D) ​either Guardian Security or Hedge Fund.

Question 54

Hal's True Hardware Stores and Ideal Tools,Inc.,sign a written contract for a sale of goods.To be enforceable,this written contract must include​ 

A) ​a correct title, such as "Purchase Order" or "Sales Invoice." 
B) ​a date, such as "October 2014" or "10/2014." 
C) ​a quantity term, such as "50 hammers" or "100 boxes of assorted nails." 
D) ​the parties' contact information.

Question 55

Sharon agrees to assume a debt owed by Tom's Guitars Inc.to United Funds Bank.The agreement is not in writing.To be enforceable under the "main purpose" rule,the promise must be for the benefit of​ 

A) ​any party. 
B) ​Sharon. 
C) ​Tom's Guitars. 
D) ​United Funds.

Question 56

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies,Inc.After three boxes are delivered and accepted,Physicians Clinic repudiates the contract.Quality Medical can enforce the contract to​ 

A) ​any extent because the order was placed orally. 
B) ​no extent because the order was placed orally. 
C) ​the extent of the three accepted boxes. 
D) ​the extent of the four undelivered boxes.

Question 57

Ed and First Star Company enter into an oral contract under which Ed agrees to provide delivery service for First Star for nine months.This contract is enforceable by​ 

A) ​Ed only. 
B) ​either party. 
C) ​First Star only. 
D) ​neither party.

Question 58

Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,there is​ 

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

Question 59

Delta,Inc.,agrees to assume a debt of Excel Company to First State Bank.The agreement is not in writing.To be enforceable,the promise must be for the benefit of​ 

A) ​any party. 
B) ​Delta. 
C) ​Excel. 
D) ​First State.

Question 60

Whitewater Canyon Adventures,Inc.,and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each.Before Whitewater takes possession of the rafts,this contract is enforceable by​ 

A) ​Xtra only. 
B) ​Whitewater only. 
C) ​any interested third party, such as a Whitewater tour guide. 
D) ​none of the choices.

Question 61

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land.In some states,to be enforceable,this contract 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 source of financing. 
D) ​a description of the land.

Question 62

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks,Inc.Lucas notes the terms on a sheet of Mountain Spring stationery and signs it.This agreement is most likely enforceable against​ 

A) ​no one. 
B) ​Lucas and Natural Soft Drinks. 
C) ​Lucas. 
D) ​Natural Soft Drinks.

Question 63

In a transaction for the sale of a warehouse,Standard Storage Company tells TriCounty Investment Corporation that the office furniture is included.The contract says nothing about office furniture,but does state,"This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?​

Question 64

Evermore Corporation and Trendy Goods,Inc.,enter into a contract.To be enforceable,the contract must include​ 

A) ​no particular signatures. 
B) ​the signatures of all parties to the deal. 
C) ​the signature of the party against whom enforcement is sought. 
D) ​the signature of the party who is seeking enforcement.

Question 65

Fact Pattern 15-3Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Odell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
Refer to Fact Pattern 15-3.The writing that Odell and Paula signed is a contract that is​ 

A) ​completely integrated. 
B) ​conditionally integrated. 
C) ​partially integrated. 
D) ​supplementally integrated.

Question 66

Fact Pattern 15-2Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement.
Refer to Fact Pattern 15-2.Lucas later disputes some of the provisions of the deal with Kelly.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 67

Donald and Etta orally agree on the sale of Donald's Electrical Supplies Company to Etta and jot down the terms on the back of one of Donald's blank invoices,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 68

Fact Pattern 15-2Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement.
Refer to Fact Pattern 15-2.The writing that Kelly and Lucas signed is a contract that is​ 

A) ​completely integrated. 
B) ​conditionally integrated. 
C) ​agreeably integrated. 
D) ​obviously integrated.

Question 69

Fact Pattern 15-3Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Odell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
Refer to Fact Pattern 15-3.Paula later disputes some of the provisions of the deal with Odell.If the dispute results in litigation,a court will most likely admit evidence of additional terms that are​ 

A) ​ambiguous. 
B) ​consistent. 
C) ​contradictory. 
D) ​clear.

Question 70

Waterfront Hotels Corporation in Boston offers a job to Carol,who lives in Denver.Carol orally agrees to work for Waterfront for two years.She moves her family to Boston and begins work.Three months later,she is fired for no stated cause.She files a suit against the employer for reinstatement or pay.Waterfront pleads the lack of a written contract.In whose favor is the court likely to rule,and why?​

Question 71

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

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

Question 72

Ulrich files a suit against Vern to enforce a written contract.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 before the contract but not contained in it. 
C) ​terms discussed at the time of the contract that contradict the written terms. 
D) ​nothing.