Question 1

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 30,2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

Accepted Answer

False

Question 2

Whittle sent an order over the Internet for a $1,200 garage door.His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

Accepted Answer

A name typed onto an electronic order can be considered an electronic signature, which is legally sufficient to create a "writing" under the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN Act).

Question 3

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 parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

Accepted Answer

The parol evidence rule generally prohibits the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary contractual terms if the written contract is intended to be a complete and final expression of the parties' agreement. However, it does not bar evidence clarifying the intended meaning of ambiguous terms, such as "Candy's sugar requirements," which might be necessary to interpret the scope of the contract's obligations.

Question 4

Rest Well Hotel orally ordered 1,000 blankets monogrammed with its initials,RWH,from TriColor Textiles.TriColor had just finished monogramming the blankets when Rest Well called and canceled the order.TriColor will be able to enforce the agreement even though there was no writing.

Accepted Answer

Even though there was no writing, the fact that TriColor had already finished monogramming the blankets for Rest Well Hotel establishes that an agreement had been made. As a result, TriColor can enforce the agreement and may have a claim for damages resulting from Rest Well's cancellation. However, it's worth noting that certain types of contracts, such as those involving the sale of goods over a certain dollar amount, typically require a writing to be enforceable under the Statute of Frauds.

Question 5

Tuan is president and sole shareholder of Entertainment,Inc.Entertainment,Inc.wishes to borrow money,but to do so,the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment,Inc.cannot.Tuan's guarantee to repay is:
A) enforceable under the parol evidence rule.
B) unenforceable because there is no insurable interest.
C) enforceable because of the leading object rule.
D) unenforceable because it is a collateral promise.

Accepted Answer

The guarantee to repay by Tuan is enforceable because of the leading object rule. This means that Tuan's promise to repay is directly related to the main purpose of the underlying transaction, which is the loan between Entertainment, Inc. and the bank. Therefore, the guarantee is enforceable even though it is not in writing.

Question 6

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.

Accepted Answer

According to the Uniform Commercial Code, a merchant who has not signed a written contract may still be held liable under certain circumstances if they have acted in a manner consistent with their acceptance of the contract's terms. This is known as implied acceptance.

Question 7

For the purposes of the statute of frauds,an interest in land includes:
A) a house.
B) a real estate mortgage.
C) an easement.
D) All of the above.

Accepted Answer

All of the options listed, a house (which is considered real property), a real estate mortgage (which is a financial interest in the property), and an easement (which grants a non-possessory interest in the property), are examples of interests in land and therefore fall under the statute of frauds. This means that any agreement related to these interests must be in writing to be enforceable in court.

Question 8

Ramona,age 42,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.

Accepted Answer

The answer of Ramona,age 42,orally agreed to work for Brahma,Inc.for...

Question 9

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts,but now the British government has repealed the writing requirement for most contracts.

Accepted Answer

The statement is true. The original statute of frauds did require written evidence of certain kinds of contracts, but now the UK government has repealed the writing requirement for most contracts.

Question 10

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 parol evidence rule applies.

Accepted Answer

While the contract is oral and not in writing, it is still enforceable due to Willis's partial performance and improvement of the land. Leslie's refusal to transfer the title is a breach of contract, and Willis may be entitled to specific performance or other remedies in court. The statute of frauds generally requires contracts for the sale of land to be in writing, but there is an exception for partial performance. The parol evidence rule only applies when there is a written contract that the parties are attempting to modify or supplement with oral agreements.

Question 11

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.

Accepted Answer

Since both parties have performed their obligations under the contract and it is fully executed, it is enforceable regardless of whether it was oral or written.

Question 12

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 does not sign.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.

Accepted Answer

This contract is enforceable even without Robin's signature because both parties are merchants. Under the Uniform Commercial Code (UCC), when both parties are merchants, a written confirmation by one party is sufficient against the other party if the latter fails to object within 10 days. Bellman's written confirmation counts as a sufficient writing under the statute of frauds, and since Robin did not object within 10 days, the contract is enforceable.

Question 13

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.

Accepted Answer

This is an accurate description of the requirements under the statute of frauds.

Question 14

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.

Accepted Answer

While there are certain contracts that must be in writing to be enforceable (such as contracts for the sale of real estate), the sale of a house for $175,000 can be enforced even if it was only orally agreed upon. However, it may be harder to prove the terms of the agreement without a written contract.

Question 15

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

Accepted Answer

The answer of Either party may demand rescission of a...

Question 16

Raymond agrees to transfer an easement right to Sandra for $1,000.This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

Accepted Answer

Contracts for the transfer of easement rights fall under the category of contracts that need to be in writing to be enforceable under the statute of frauds.

Question 17

Any contract involving a sale of goods of $100 or more must be in writing.

Accepted Answer

The Uniform Commercial Code (UCC) requires a contract for the sale of goods priced at $500 or more to be in writing to be enforceable, not $100. This threshold has been updated to $5,000 in the amendments to the UCC Article 2, but the original statement is incorrect based on the traditional $500 rule.

Question 18

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.

Accepted Answer

This is true. A collateral promise, also known as a secondary promise or guaranty, is a promise by a third party to pay the debt if the debtor defaults. Such a promise must be in writing to be enforceable under the statute of frauds.

Question 19

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

Accepted Answer

Parol evidence refers to any oral or written statements, negotiations, or agreements made by the parties before or at the time the contract was signed, and is used to interpret or supplement the terms of the written contract.

Question 20

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.

Accepted Answer

A writing that satisfies the statute of frauds does not necessarily have to be a formal document drafted by an attorney, nor does it need to be notarized. However, it must be signed by the defendant and contain specific information including the names of the parties, the subject matter of the agreement, and the essential terms and promises.

Quiz 15: Written Contracts