Deck 13: Form and Meaning

Question 1

The statute of frauds addresses the problem of contractual fraud in the inducement.

Answer 1

False

Question 2

Usage of trade is a pattern of behavior between parties showing how they intend their relationship to work.

Answer 2

False

Question 3

The UCC provides that an oral contract for goods in excess of $350 will be upheld if payment has already been made and accepted.

Answer 3

False

Question 4

A contract to have a house painted for $10,000 would need to be evidenced by a writing to be enforceable.

Question 5

The statute of frauds is irrelevant if the parties to the agreement are willing to perform.

Question 6

The Statute of Frauds is a legislative intrusion into the common law of contracts.

Question 7

Movie Star said to Carla, age 26, "The kids really love you as their nanny. I hope you will stay with us for a long time; I offer you lifetime employment." Twenty years later Movie Star wished to let Carla go. The statute of frauds would preclude her from attempting to prove the lifetime-employment offer.

Question 8

The statute of frauds requires that the parties have a signed, written contract.

Question 9

At John's oral request, Juanita printed up 5000 brochures for John's business, costing $800. Because Juanita used normal printing methods, these are not "specially manufactured goods" to qualify for an exception to Article 2's statute of frauds.

Question 10

Integrated contract is a customary way of doing business that may be used to inform parties' contractual intentions.

Question 11

In Wilson Floors Co. v. Scotia Park, Ltd., and Unit, Inc., the court made a judgment based on the fact that the bank had no contractual duty to Wilson despite its oral guarantee according to the Statute of Frauds.

Question 12

If an oral agreement is made to be performed within one year and if there is even a slight chance of carrying out the agreement completely within one year, the oral agreement would be enforceable.

Question 13

If Sally admits she made an oral agreement to buy a computer costing $1300, the agreement is nevertheless unenforceable under the statute of frauds.

Question 14

Course of dealing is a systematic and uniform conduct in which parties engage after they enter into a contract.

Question 15

Regarding a common-law agreement affected by the statute of frauds, John said, "I admit I made an oral agreement, but there is nothing in writing and I don't want to go through with it." The agreement is enforceable against John.

Question 16

A clause that is separately negotiated and added to a contract will be counted as more significant than a standard term in a form contract.

Question 17

According to the part performance doctrine, acts taken in reliance are not necessary partial performances.

Question 18

A collateral promise is one in which the promisor agrees to be primarily liable for the principal debtor's obligation.

Question 19

Most oral contracts are enforceable.

Question 20

The parol evidence rule does not prevent a showing that a fact stated in a contract is untrue.

Question 21

A person who promises to act or pay upon the default of another is known as a(n) _____.

A) creditor
B) promisee
C) surety
D) principal
E) primary obligor

Question 22

Which of the following is an exception to the UCC's Statute of Frauds requirement?

A) Main purpose exception
B) Part performance doctrine
C) Possibility test
D) Agreements of executor or administrator
E) The admission exception

Question 23

Bank threatens to repossess Julia's car for non-payment. Julia's mom promises to pay Bank if Julia defaults. This promise needs to be evidenced by a writing under the statute of frauds.

Question 24

In which situation would an oral agreement be enforceable without any writing?

A) Raul orders custom-made cabinets for his office, and Cabinet Maker begins substantial work.
B) Darrel telephones computer store and orders a high-end computer for pick up.
C) Mason calls a cleaning service for his four-month stay in a New York apartment starting in ten months.
D) Mason calls Maverick Airlines to purchase airline tickets to New York for $600.
E) Two of the above would not need a writing.

Question 25

What are the benefits of written contracts over oral ones?

Question 26

Which of the following is true with regard to the parol evidence rule?

A) It applies only to the oral discussions that do not make it into the final written agreement.
B) The rule has no bearing on events that have transpired before the contract in dispute was signed.
C) The rule is concerned only about agreements reached subsequently that may alter the terms of an existing contract.
D) It does not negate all prior agreements or statements.
E) The rule applies only in cases where the parties never intended the written contract to be their full understanding and intend it to be partly oral.

Question 27

Which of the following agreements are enforceable without a writing under the statute of frauds?

A) Tom agrees to sell a small sliver of real estate to Patricia for $450.
B) Ibrahim agrees to work for Johnson for two years.
C) Sarah and Joan agree to change the purchase price of a bicycle from $600 to $480.
D) Victoria promises to pay Wanda's Window Washing to clean Charlyn's windows.
E) Two of the above would not need a writing.

Question 28

Which of the following will be enforceable under UCC?

A) On January 1 Hannah makes an oral agreement to pay $4,000 to Harry for his bike on June 1.
B) On January 1, 2018, Hannah makes an oral agreement to pay $700 to Harry for his bike on June 1, 2019.
C) On January 1, 2018, Hannah makes an oral contract to pay $4,000 to Harry for his bike which she has received and accepted by June 1, 2019.
D) On January 1, 2018, Hannah makes an oral agreement to pay $6,000 to Harry for his house.
E) On January 1, 2018, Hannah makes an oral agreement to pay $4,000 to Harry for his bike by June 1, 2019.

Question 29

Explain the memorandum concerning the agreement of the statute's purpose to evidence the making of the contract according to the common law.

Question 30

According to the main purpose doctrine, _____.

A) a promise to pay the debt of another need not be writing to be enforceable if the promisor was motivated by a desire for advantage or benefit
B) there should be a pattern of behavior between parties showing how they intend their relationship to work
C) there should be a systematic and uniform conduct in which parties engage after they enter into a contract
D) the Statute of Frauds dispenses with a writing requirement when one party performs his or her part of the contract
E) if at its making, a contract could have been performed in one year, no writing is required

Question 31

According to the statute, which of the following is an exception to the Statute of Frauds written requirement?

A) The ten-day-reply doctrine
B) Specially manufactured goods
C) Main purpose exception
D) The admission exception
E) The payment or delivery and acceptance exception

Question 32

According to the rule of interpretation, which of the following is true?

A) Writing is interpreted as a whole, without undue attention to one clause.
B) Courts prefer the items in the order listed: course of dealing, usage of trade, express terms, and course of performance.
C) If an amount is given in words and figures that differ, the figures control.
D) Typing controls over writing; writing controls over printed forms.
E) Written contracts guarantee escape from disputes and litigation.

Question 33

The "part performance" doctrine is a court-made exception to the statute of frauds one-year rule.

Question 34

The "main purpose" doctrine is a court-made exception to the statute of fraud's suretyship provision.

Question 35

The usage of trade is a _____.

A) pattern of behavior between parties showing how they intend their relationship to work
B) systematic and uniform conduct in which parties engage after they enter into a contract
C) customary way of doing business that may be used to inform the parties' contractual intentions
D) promise to pay a debt which need not be in writing if the promisor was motivated by a desire for advantage or benefit
E) contract term stating that the written agreement contains the parties' full understanding and intent

Question 36

A contract term stating that the written agreement contains the parties' full understanding and intent is known as _____.

A) integrated contract
B) merger clause
C) main purpose doctrine
D) reformation
E) non-disclosure clause

Question 37

An integrated contract is _____.

A) something that has to happen before the obligation to perform the contract ripens
B) a promise ancillary to an original promise
C) a customary way of doing business that may be used to inform the parties' contractual intentions
D) a contract that comprehends the parties' full understanding
E) an agreement after marriage between spouses concerning division or ownership of their property

Question 38

Buyer purchased Seller's business on a written contract providing that Seller would stay on for three weeks to help Buyer learn the business. It became apparent Seller's help would be needed for another three weeks; the parties orally so agreed, providing also that Seller would get paid for this tutoring.

A) The term about the extra three weeks runs afoul of the parol evidence rule.
B) In issue here is the application of the statute of frauds' "main purpose" doctrine.
C) The term about the extra three weeks is admissible.
D) The three-week term is within the statute of frauds' "part performance" exception.
E) None of the above is correct.

Question 39

On January 1, William contracts to build a house for Susan. Construction is to begin July 1, and be completed by February 15 of the next year (seven months). This agreement is not subject to the statute of frauds.