Deck 16: The Form and Meaning of Contracts

Question 1

Under the Statute of Frauds,contracts for the transfer of ownership of land do not need to be in writing.

Answer 1

False

Question 2

A contract may be enforceable if promissory estoppel applies.

Answer 2

True

Question 3

Under the E-Sign Act,digital signatures are given the same effect as written ink on paper.

Answer 3

True

Question 4

As illustrated by the Parol evidence rule,when parties put their agreements in writing,it is wise to leave out any elements that they wish to modify orally.

Question 5

The parties had to rely on the testimony of third persons who were often paid witnesses or friends,and false testimony was common in the original statute of frauds adopted in England in 1677.

Question 6

In a guaranty contract,the guarantor's promise must be evidenced by a writing to be enforceable.

Question 7

On April 1,2005 Parker entered an oral contract with Wilkins in which Parker promised to work for Wilkins for three years for a salary of $40,000 per year.On April 5,2005,Wilkins called Parker and repudiated the contract,stating that he had decided not to hire him after all.If Parker sues Wilkins for breach of contract:

A)Wilkins will win because the contract violates the statute of frauds.
B)Wilkins will lose because the contract is enforceable.
C)Wilkins will win because the contract violates the parol evidence rule.
D)Wilkins will lose because his main purpose in promising to hire Parker was to benefit himself.

Question 8

When parties to an oral contract have both fully performed their obligations under the contract,the parties are:

A)allowed to rescind the contract.
B)not allowed to rescind the contract.
C)allowed to seek compensatory damages.
D)not allowed to recover the value of performance.

Question 9

If one of the parties drafted the contract,ambiguities are resolved against that party in interpreting it.

Question 10

The student formerly known as Jim prefers to sign his name with the symbol "$." When signing his lease,he indicated his intent to be bound by placing a "$" on the lease's signature line.This satisfies the statute of frauds' writing requirement.

Question 11

Oral contracts that come under the provisions of the statute of frauds are:

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

Question 12

A person's promise made on an original contract is identical to the promise a third party makes on a guaranty contract.

Question 13

Oral evidence may be introduced to help resolve ambiguities in a written contract.

Question 14

If the parties used a form contract,or the contract is partly printed and partly written,the printed terms control the written terms if the two conflict.

Question 15

Contracts that are required to be in writing by the statute of frauds are:

A)all promises for the international sale of goods.
B)contracts transferring an interest in land.
C)contracts predicated on a condition precedent.
D)contracts for the sale of goods costing less than $500.

Question 16

The UCC is unique in its approach to the statute of frauds because it recognizes that the basic purpose of the statute of frauds can be satisfied only by writing.

Question 17

Oral evidence may be introduced to "fill the gaps" in an incomplete written contract.

Question 18

Legislative reform at both the state and federal levels have facilitated e-commerce by revising traditional contract rules to include new contract rules for electronic transactions made over the Internet.

Question 19

Harold makes an oral agreement to purchase Tina's boat for $700.Under the UCC:

A)the contract is voidable.
B)the contract is barred by promissory estoppel.
C)the agreement is barred by the statute of frauds.
D)the contract can be enforced without a writing.

Question 20

A fully executory,bilateral contract that cannot be performed within a year after it is made need not be evidenced by a writing to be enforceable.

Question 21

State statutes of frauds generally agree:

A)that memorandums satisfying the requirement for a writing need only be signed by the party to be bound.
B)that the entire contract be in writing and that the writing be in a single document in the form of a letter.
C)that only a series of numbers unique to each person printed on a memorandum will suffice as a signature.
D)that the signature should appear on the bottom left corner of the memorandum.

Question 22

Terry and Melody have an oral contract for the sale of 100 textbooks at $100 per book.If Terry delivers the books and Melody accepts them,or if Melody pays for the books and Terry accepts payment,which of the following parties can raise the statute of frauds defense?

A)Terry can raise the statute of frauds defense.
B)Only the party to be charged may raise the defense.
C)Neither of them,as the agreement has been performed at least partially.
D)Melody can raise the statute of frauds defense.

Question 23

Under the Uniform Electronic Transactions Act:

A)consent must be affirmatively given each time a transaction is made.
B)consent and withdrawal are identical to that of the E-Sign Act.
C)there are no specific rules governing when consent has been given electronically.
D)a PIN number used to access an ATM is not considered as a digital signature.

Question 24

For the requirement that certain types of contracts must be in writing,promissory estoppel is an exception to:

A)collateral guaranty contracts.
B)transfers of interest in land.
C)an executor's agreement to personally pay a decedent's debts.
D)a contract varied by parol evidence.

Question 25

Miriam makes an oral agreement with John to sell him 200 acres of prime farmland for a mere $500.Their agreement is:

A)enforceable in accordance with the statute of frauds.
B)covered by the statute of limitations.
C)enforceable only if promissory estoppel applies.
D)unenforceable as it lacks a writing as required by the statute of frauds.

Question 26

Sunny makes an oral agreement with WudWerks to create 100 custom-made chairs for her restaurant for $14,000.After WudWerks had shifted around their production schedule to produce the chairs,Sunny calls WudWerks and says that she no longer wants the chairs and that their deal is off.Under this scenario:

A)the parties' agreement is executory bilateral.
B)the agreement falls within the statute of frauds exception for specially-manufactured goods.
C)the parties' agreement is collateral.
D)the parties' agreement is unenforceable and the buyer is protected under the statute of frauds.

Question 27

If an oral contract has been declared unenforceable by the court,yet one of the parties has rendered some performance under the contract that conferred benefits on the other party,he/she can recover the reasonable value of the performance in:

A)collateral enforcement.
B)quasi contract.
C)the statute of frauds.
D)parol evidence.

Question 28

A collateral contract involves:

A)three parties and two promises,one of which is conditional.
B)two parties and two promises,both are conditional.
C)two parties and one promise which is conditional.
D)three parties and two promises,both are conditional

Question 29

Identify the true statement regarding collateral contracts.

A)They do not need to be evidenced by writing to be enforceable.
B)They are covered by the statute of frauds.
C)They are considered to be original contracts.
D)The guarantor is primarily liable to perform his contractual duty.

Question 30

A famous publisher makes an oral deal with Professor Cullison to write a new Legal Ethics book.The parties agree that Professor Cullison's work will be due in five years.Under this scenario,the contract is:

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

Question 31

When a contract is partly printed and partly written:

A)the written terms control the printed terms.
B)ambiguities are resolved in favor of the party who drafted the contract.
C)the printed terms control the written terms.
D)the meanings of printed words are controlled by trade usage.

Question 32

Leroy writes a letter that said,"I agree to sell to Jay 5 modern art paintings" and he signs the letter.What happens according to the code if Jay is a merchant and he receives this writing from Leroy and does not object in writing within 10 days after receiving it?

A)Jay would have a good statute of fraud defense as he has not signed the contract.
B)Jay loses his statute of fraud defense.
C)It will be considered as a void contract.
D)Leroy will be prevented by the statute of frauds to take the case to the court.

Question 33

A clothing store that has opened a credit account with Judy,a college student,gets Judy's older sister Alice to agree to pay the amount owed on the account if Judy fails to do so.Which of the following statements is true for this scenario?

A)Judy is the obligor and only she is contractually liable to the clothing store.
B)Alice is the guarantor and she is primarily liable to make the payments.
C)Judy is the obligor and her promise to the clothing store is conditional.
D)Alice is the guarantor and Alice's contract must be in writing to be enforceable.

Question 34

Under the U.N.Convention on the International Sale of Goods:

A)a writing is required for contracts over $1,000.
B)a writing is not required.
C)a writing is always required.
D)a writing is required for contracts of specially manufactured goods.

Question 35

Under the E-Sign Act:

A)consumer consent need to be given only once when multiple transactions are involved.
B)the price and procedure for withdrawing consent must be spelled out.
C)E-businesses are permitted to impose consent withdrawal fees on consumers in all situations.
D)a digital signature does not have the same effect as one written in ink on paper.

Question 36

When interpreting contracts,courts:

A)give technical words an ordinary meaning.
B)give ordinary words their usual meaning.
C)give ambiguous words in favor of the party who drafted the contract.
D)give non-technical words any meaning intended by the defendant.

Question 37

According to the leading object doctrine,promises of third parties to a contract who are primarily motivated by a desire to secure some personal benefit:

A)fall outside the scope of the statute of frauds.
B)are covered by the statute of frauds.
C)are estopped from recovery.
D)have to be in writing to be enforceable.

Question 38

Which of the following is a basic Code writing requirement?

A)That the entire contract be in writing,always in the form of a letter.
B)That the written evidence indicates the quantity of goods sold.
C)That the written evidence be compulsorily signed by both the parties.
D)That the essential terms of the contract and the parties' signatures were contained in more than one document.

Question 39

The equitable doctrine of _____ allows some parties to recover under oral contracts which the statute of frauds would have ordinarily rendered unenforceable.

A)estoppel by convention
B)equitable estoppel
C)proprietary estoppel
D)promissory estoppel

Question 40

Written contracts that call for performance over a considerable period of time and thus increase the risk of faulty or willfully inaccurate recollection of their terms in subsequent disputes are called:

A)long-term bilateral contracts.
B)collateral contracts.
C)guaranty contracts.
D)international contracts between companies in signatory countries.

Question 41

Paulsen and Warren enter into a written contract.Warren later sues Paulsen for breaking a certain oral promise that Warren alleges is part of their deal.Paulsen's oral promise is not included in the terms of the written contract.At trial,Warren attempts to introduce evidence about the oral promise,and Paulsen's attorney objects to the admission of the evidence on the ground that it violates the parol evidence rule.A court would refuse to admit evidence about Paulsen's oral promise if:

A)the oral promise was made after the written contract was signed.
B)the oral promise was made before the written contract was signed and contradicts a term of the written contract.
C)the written contract is partially integrated and the oral promise is consistent with the terms of the written contract.
D)the evidence about the oral promise is being offered to prove that Warren entered into the contract as a result of Paulsen's fraud.

Question 42

The parol evidence rule:

A)makes certain classes of oral contracts unenforceable.
B)applies to all contracts for an amount greater than $500.
C)is a potential source of danger for parties who reduce their agreements to written form.
D)provides lenience to the parties if a few terms agreed upon are excluded in writing.

Question 43

Why do contracts that involve the executors' agreements to personally pay their decedents' debts that are covered by the statute of frauds to be in writing to be enforceable?

Question 44

Helen was the president and 25 percent owner of two companies that served the Uptown Mall.At the request of the mall owner,Helen helped arrange the mall's sale to Saber.To ensure continuity in mall operations,Saber offered to hire Helen as vice-president of its retail division.The terms they allegedly negotiated included a five-year term of employment,renewable for another five years,with termination at the option of either party on six months' written notice.Helen wrote some of the terms up in a letter that Saber orally agreed to but never signed.Helen worked for Saber for 11 months and then was fired without notice.Can Helen enforce the contract?

Question 45

Explain with an example how the parol evidence rule is a potential source of danger for parties who reduce their agreements to written form.

Question 46

Under the parol evidence rule,parties cannot vary the terms of:

A)a written contract by introducing evidence of terms allegedly agreed on prior to,or contemporaneous with the writing.
B)an oral contract by introducing evidence of a written agreement.
C)a written contract by introducing evidence of another writing produced after the original contract was drafted.
D)an oral agreement by publishing notice of a subsequent modification.

Question 47

"Parol evidence" refers to:

A)the evidence given at a parole hearing.
B)the idea that when the parties to an agreement have expressed their agreement in a complete,unambiguous writing,the writing is the best evidence of their intent.
C)the rule requiring that certain types of perjury (lying under oath)concerning the evidence in a case results in criminal sentences without possibility of parole.
D)the equitable doctrine of promissory estoppel.

Question 48

Explain the writing requirement under the UCC and U.N.'s Convention on the International Sale of Goods.

Question 49

What kind of writing is required under the statute of frauds?

Question 50

Which of the following is true about the exception to the parol evidence rule?

A)A party can always introduce proof of an oral agreement made after the writing was created,these subsequent oral modifications of contracts will always be enforceable.
B)A party can introduce oral testimony about the facts and circumstances surrounding the agreement without contradicting its terms.
C)A party can always introduce proof of an oral agreement made before the writing was created,these oral agreements will always be enforceable.
D)If the terms of the writing are unclear,oral testimony can be introduced to aid the court in interpreting the writing.