Deck 11: Written Contracts and Cyber-Commerce

Question 1

Under the parol evidence rule, evidence of oral statements made before signing a written agreement is admissible in court to change the terms of a written agreement.

Answer 1

False
Explanation: Following oral discussion and negotiation, parties may reduce their agreements to some written form. When this is done, only the terms, conditions, and promises included in the writing will be allowed as evidence in court.

Question 2

According to the Statute of Frauds, written agreements must always be signed by both parties.

Answer 2

False
Explanation: Written agreements should be, but need not be, signed by both parties. If signed by only one party, any obligation in the agreement would be limited to that party alone.

Question 3

Charles only has a photocopy of his written contract with Jenny, and not the original. The photocopy is not generally acceptable as evidence in a trial concerning the contract.

Answer 3

True
Explanation: Under the best evidence rule, a written instrument is regarded as the primary or best possible evidence. Thus, the best evidence rule concurs with and supports the parol evidence rule.

Question 4

The FACT Act focuses on contracts that involve the sale of computer software, multimedia products, and any other type of computer information.

Question 5

If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing.

Question 6

Sean gives an oral promise to Oscar to sell his old house. Oscar, relying on Sean's promise, puts on a new roof and paints it. Oscar cannot enforce this oral contract.

Question 7

The standard construction rule is the most fundamental guideline involved in the interpretation of written contracts.

Question 8

The provisions of Article 2 of the Uniform Commercial Code apply when a cyber-agreement deals with the sale of goods.

Question 9

The administrator of an estate is a person named by the court, if none is named in a will.

Question 10

A notary is required to read the document when providing acknowledgment of a signature.

Question 11

Oral evidence cannot be used to clarify terms that are obscure in a written contract.

Question 12

Most oral contracts are valid.

Question 13

Under contract law, facsimile signatures are always as valid as original signatures.

Question 14

Some websites use "clickbot" software, which are capable of mechanically clicking on certain advertisements at programmed intervals. All of the major search engines have found themselves in litigation because of this new cyber-confidence game.

Question 15

UETA created a new set of legal rules governing electronic contracts.

Question 16

The person to whom a cosigner makes a promise is the obligee.

Question 17

Jennifer orally contracts to purchase a television for $450. This contract is legally unenforceable.

Question 18

Alice's attorney is preparing her will. Witnesses are required when Alice signs her will.

Question 19

An electronic party should always ensure that a copy of the contract is available on a hyperlink that will display the actual language of the agreement.

Question 20

The equal dignities rule provides that when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.

Question 21

Which of the following contains all the elements of a written agreement that can be enforceable under law?

A) "Henry Shay agrees to purchase hand-knit sweaters for $45 apiece. Signed, Henry Shay."
B) "Silvie Nader and Henry Shay are parties involved in this contract for the purchase of hand-knit sweaters on Wednesday, June 17. Signed, Henry Shay and Silvie Nader."
C) "Silvie agrees to mail six hand-knit sweaters, at $45 apiece, to the house on Wednesday, June 17. Signed, Silvie Nader."
D) "Full Agreement by Henry Shay and Silvie Nader. Henry agrees to purchase from Silvie six of Silvie's hand-knit sweaters at $45 each. Signed, Silvie Nader, and Henry Shay."

Question 22

An exception to the _____________ rule states that if a written agreement depends on some event before it becomes enforceable, __________________ evidence may be offered regarding that _____________________

A) Parol evidence, written, condition precedent.
B) Standard construction, written, condition precedent.
C) Best Evidence, oral, condition precedent.
D) Parol evidence, oral, condition precedent.

Question 23

Willy and Brogan, aged 16, enter into a written contract in which Brogan will sell his horse to Willy for $250. Before the sale is finalized, Brogan seeks to be released from the contract and wants to offer in-court oral testimony concerning his age. The admission of Brogan's testimony is most likely governed by the ______________________ rule.

A) standard construction
B) best evidence
C) equal dignities
D) parol evidence

Question 24

Gabriel applies for a home loan. Mark signs the agreement promising to pay off the debt in case Gabriel fails to do so. In this case Mark is:

A) the guarantor.
B) the obligee.
C) the obligor.
D) the assignor.

Question 25

Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing the contract they orally agree to modify the contract to "1,000 cases of widgets." If later the parties are in litigation concerning the amount of widgets involved in the contract, can evidence of the oral change be introduced into evidence?

A) No, since this violates the parol evidence rule.
B) Yes, since both signed the original contract.
C) Yes, since this is an exception to the parol evidence rule.
D) No, since this violates the best evidence rule.

Question 26

Sagan is borrowing money from Big Bank. His friend Leda, who works for Graille Systems, signs the loan agreement promising to pay the debt if Sagan does not. In this scenario, ______________ is the obligee, and ____________ obligor.

A) Sagan, Big Bank
B) Leda, Big Bank
C) Graille Systems, Sagan
D) Big Bank, Sagan

Question 27

Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. The ________________ rule requires that this agreement be in writing and signed to be enforceable.

A) Parol evidence
B) Best evidence
C) Standard construction
D) Equal dignities

Question 28

Matrix, Inc. is the general contractor of a large commercial building project. Matrix subcontracted with Acme Flooring, Inc. to have flooring installed throughout the building. When Matrix failed to make payments to Acme as agreed, Acme stopped working. Commercial Bank, the lender for the project, orally promised Acme that Commercial would pay whatever Matrix failed to pay Acme if Acme would resume work. Acme finished the flooring but was still not paid. Which of the following is true under the Statute of Frauds?

A) According to the primary objective test, Commercial Bank is not obliged to pay Acme as the promise must be written and signed.
B) According to the primary objective test, since Commercial Bank's promise enhanced its mortgage interest, it is liable for payment to Acme.
C) According to the main purpose test, Commercial Bank is not obliged to pay to Acme since Matrix was not a party to its promise.
D) According to the primary objective test, since Commercial Bank's promise did not involve the actual lending of money it is not liable to Acme.

Question 29

In 2012, Alder Inc. (seller) and Dell, Inc. (buyer) signed a long-term sales contract that provided for cashier's check payments to be made by Dell on the first of each month. In 2015, Dell began using a wire transfer payment method, and now Alder asserts that Dell is in breach of contract. Which of the following is true?

A) Dell cannot introduce oral evidence in court since it violates the parol evidence rule.
B) Dell can introduce evidence of the payment under the exception to the parol evidence rule.
C) Dell violated the best evidence rule, hence cannot produce evidence in court.
D) Dell can exclude parol evidence because wire transfers and cashier's checks are identical.

Question 30

_________ contracts for the sale of goods of $500 or more are ________________ if the contract _________________________.

A) Oral, enforceable, involves specially manufactured goods that cannot be resold easily
B) Oral, not enforceable, is an executed agreement
C) Written, not enforceable, involves admissions in court
D) Electronic, not enforceable, is a written memorandum

Question 31

Donna entered into an oral contract with Ava to purchase a house from Ava, with $500 per month payments for the next 10 years. Donna moved into the house, remodeled it, and did extensive repairs. At the end of 10 years, Ava refused to convey title to the house to Donna and produced evidence at the resulting trial that the fair market rental value for the house averaged $800 per month over the 10-year period. Does Donna have an enforceable contract?

A) Yes, Donna is entitled to the ownership of the house because oral contracts for the sale of land are enforceable under the Statute of Frauds.
B) No, Donna cannot claim ownership of the house since there was no written contract with Ava.
C) Yes, Donna can claim ownership of the house based on equitable estoppel.
D) No, Donna is not entitled to the ownership of the house since she was paying below the fair value.

Question 32

Star Software Systems and Henry orally agree for Henry to write special accounting software. This software usually takes three years to complete, but can be done sooner. Does Henry have an enforceable legal agreement with Star?

A) Yes, the agreement is enforceable because Henry could possibly complete writing the software within a year.
B) No, the agreement is unenforceable because it is not written and signed.
C) Yes, the agreement is enforceable, but only to the extent of work Henry completes within the first year of the contract.
D) No, the agreement is unenforceable since the contract involves a tangible work product.

Question 33

On September 1, Isabel contracts with Ned to sing at Ned's restaurant starting on October 1 and ending on October 15 of the following year. Discuss if this contract must be written and signed to be legally enforceable.

Question 34

Which of the following is true of "click" fraud?

A) The click-on process functions only in online contracts and not for online advertisements.
B) Clicks are proven ways to gauge interest in the advertiser's service or product.
C) A problem that arises in this area is verifying the identity of the "clicker."
D) The click-on process functions only for online advertisements and not for online contracts.

Question 35

According to the ___________________, whenever an ambiguous term, clause, or line is found in a prewritten contract, that ambiguity is interpreted against the party who wrote the contract.

A) Standard construction rule
B) Parol evidence rule
C) Best evidence rule
D) Equal dignities rule

Question 36

Charles orally promises Holly that he will marry her. He also states that if they ever get divorced, then he will transfer one-half of his assets to Holly. They marry and divorce within a year. Which of the following is true of Charlie's promise to Holly?

A) The promise qualifies as an enforceable oral contract.
B) The promise is legally enforceable only if it does not involve the transfer of land.
C) The promise is not legally enforceable unless Holly proves that the promise influenced her decision to marry him.
D) The promise is not legally enforceable because it was not written.

Question 37

Under the ____________ rule, the courts generally accept into evidence only the original of a writing, not a copy.

A) best evidence
B) parol evidence
C) standard construction
D) equal dignities

Question 38

Uncle Rodrick was deeply in debt when he died. His niece Evangeline became the administrator of his estate. She orally promised Rodrick's creditors that she would personally pay his debts if they would not publicize the fact that Rodrick died in debt. When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors be legally able to collect from Evangeline?

A) Yes, since there was a bargained-for exchange.
B) No, since Evangeline was not Rodrick's child.
C) Yes, since Evangeline made a guaranty of payment.
D) No, since Evangeline's promise was not in writing and signed.

Question 39

The Fair and Accurate Credit Transactions Act: ____________________________.

A) Establishes the same type of legal parity between electronic records and paper records
B) Is a federal act designed to deal with problems associated with cyber-commerce
C) Prohibits merchants from using credit card receipts that show anything other than the last five credit card numbers
D) Is a federal amendment to the Uniform Electronic Transactions Act

Question 40

The Statute of Frauds: ______________________.

A) States that all contracts have to be in writing to be enforceable in the court of law
B) Decrees oral contracts to be invalid and hence not upheld or enforceable by law
C) States that certain types of contracts have to be in writing to be enforceable
D) Maintains that agreements can be oral while contracts have to be in the written format

Question 41

McDougal Construction and Espinosa entered a contract to build the latter a two-story house. However, after the company began its construction, Espinosa decided that she wanted a terrace garden, making the house a three-story. McDougal indicated the additional costs to Espinosa and completed the job including the terrace garden - neither of which was in writing or included in the original contract. Espinosa paid McDougal the original amount but did not pay the extra amount for the third story. Discuss if the court will admit an oral testimony of the McDougal's to the original contract.

Question 42

Bernadette contracts in writing to sell Emily a flatbed trailer so that Emily's son can use the trailer as the base of a homecoming parade float on October 17. Bernadette knows all about the parade, but the written contract only requires Bernadette to deliver the trailer "in October" and Bernadette uses the trailer for her projects until October 20 when she tenders delivery to Emily. Emily refuses the trailer and refuses to pay the contract price since her son no longer needs it. Discuss in detail what evidence is admissible in a suit by Bernadette against Emily for breach of contract.

Question 43

On September 1^st, Wild Willy's Club orally gives an order to T-Shirts R Us Inc. for T-shirts worth $600. The T-shirts have the date and location of Wild Willy's annual Christmas party on December 15^th printed on them. In late October, Wild Willy's calls T-Shirts to cancel the order. T-Shirts has already processed the order and the T-shirts are ready to be shipped. Discuss in detail whether or not this oral order is enforceable once the T-shirts have been made.

Question 44

Jones orally agreed to sell his iPad Air to McKay for $475. He tried later to back out of the deal on the grounds that the oral agreement was unenforceable. Discuss the case.

Question 45

In June, the Daniels contracted with Twining to build a stone path leading from the road to their vacation home. They asked him to complete the job within 11 months. Explain whether Twining and the Daniels must enter into a written agreement for such a contract to be enforceable.

Question 46

Emilio takes his unconscious friend Todd to the hospital. However, the hospital will admit Todd only if someone can promise to pay Todd's medical bills. Emilio orally promises to do so, and the hospital admits Todd. Discuss in detail whether or not this statement is legally binding on Emilio and/or Todd.

Question 47

Late one evening Charles and Henry are discussing the purchase and sale of $2,500 of coffee shop equipment after an entrepreneurship class. They are in the classroom when Henry writes their agreement on the classroom whiteboard and both Henry and Charles sign it on the whiteboard. Discuss if this whiteboard document is sufficient to provide a binding written agreement.

Question 48

Kay, who is quite elderly, uses a star (*) as her signature. In a written contract Kay's name is written, but on the signature line for Kay's name only the * that Kay made appears. Discuss whether or not the * binds Kay to the contract.

Question 49

Joseph dies with no assets, but over $100,000 in personal debt. Joseph's daughter Samantha, who is very wealthy, is made executor of his estate. Joseph's creditors assert that Samantha must personally pay Joseph's debts because she is wealthy, Joseph's daughter and now the executor of his estate. Is Samantha liable?