Question 1

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

Accepted Answer

For a contract to be enforceable, it generally must be signed by the party against whom enforcement is sought, not necessarily by the party seeking to enforce it.

Question 2

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

Accepted Answer

An oral contract for a transfer of land is generally unenforceable under the Statute of Frauds, which requires such contracts to be in writing and signed by the parties. However, there are some exceptions and variations to this rule depending on the jurisdiction and the circumstances of the contract. It is always recommended to have any land transfer contracts in writing and reviewed by an attorney.

Question 3

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would​
A) ​not rescind the contract.
B) ​rescind the contract on the basis of fraud.
C) ​rescind the contract on the basis of mistake.
D) ​rescind the contract on the basis of undue influence.

Accepted Answer

The contract would not be rescinded simply because both parties were unaware of the land's true value due to the oil beneath it. This situation does not constitute fraud, mistake in the terms of the contract, or undue influence, but rather a mutual ignorance of a material fact that does not affect the validity of the agreement.

Question 4

A prenuptial agreement must be in writing to be enforceable.​

Accepted Answer

According to most state laws, a prenuptial agreement must be in writing to be enforceable. Verbal agreements are generally not considered valid in court.

Question 5

To be enforceable, a contract for a sale of goods priced at $500 or more must designate the buyer, seller, terms of payment, and price.​

Accepted Answer

Under the Uniform Commercial Code (UCC) Section 2-201, a contract for the sale of goods priced at $500 or more must be in writing to be enforceable, but it only needs to be "sufficient to indicate that a contract for sale has been made between the parties" and is signed by the party against whom enforcement is sought. It does not specifically require designation of the buyer, seller, terms of payment, and price.

Question 6

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would​
A) ​allow the parties to rescind the contract.
B) ​award damages to Flora for the mistake.
C) ​award damages to Global for the mistake.
D) ​enforce the contract as is.

Accepted Answer

A court would most likely allow the parties to rescind the contract due to the mistake in adding the costs, which significantly affects the agreement's terms.

Question 7

Under the Statute of Frauds, land includes physical objects permanently attached to it, such as buildings, fences, trees, and soil.​

Accepted Answer

The Statute of Frauds defines land as including physical objects permanently attached to it, including buildings, fences, trees, and soil.

Question 8

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

Accepted Answer

An integrated contract is one that is intended by the parties to be a final and complete expression of their agreement, not necessarily one with multiple subjects or parts.

Question 9

At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is​
A) ​still liable on the bid.
B) ​not liable on the bid because he underestimated the cost of repairs.
C) ​not liable on the bid because the auctioneer misrepresented the value.
D) ​not liable on the bid because an auction is not subject to contract law.

Accepted Answer

Benny is still liable on the bid because he made a legally binding agreement to purchase the car at the price he bid, regardless of any changes in the car's value. Under the principle of caveat emptor, which means "buyer beware," it is the buyer's responsibility to assess the value of the item before bidding, and Benny assumed that risk when he placed his bid.

Question 10

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

Accepted Answer

A written contract for a transfer of land is generally enforceable as it complies with the Statute of Frauds, which requires that contracts involving land be in writing and signed by the parties involved. However, there are some exceptions and limitations to this general rule, such as fraud, misrepresentation, or mistake.

Question 11

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

Accepted Answer

Not all contracts involving interests in property must be in writing to be enforceable. While the Statute of Frauds requires certain types of contracts, including those for the sale of real estate, to be in writing, contracts for the sale of personal property under a certain value may not need to be in writing to be enforceable.

Question 12

Fact Pattern 10-1
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken.
​
-Refer to Fact Pattern 10-1. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake concerns​
A) ​a basic assumption on which the contract was made.
B) ​a term in the contract subject to only one reasonable interpretation.
C) ​a detail on which the parties had a true "meeting of the minds."
D) ​a third party, such as County Title.

Accepted Answer

A mistake regarding a basic assumption on which the contract was made can provide grounds for rescission of the contract. This includes mistakes regarding the subject matter of the contract, identity of the parties, or the existence of a certain state of facts believed to be true at the time the contract was made. Mistakes regarding details or interpretations of terms may not be sufficient for rescission. The involvement of a third party, such as County Title, does not automatically provide grounds for rescission unless their actions were fraudulent or negligent.

Question 13

Fact Pattern 10-1
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken.
​
-Refer to Fact Pattern 10-1. If Doyle and Ezra are both ignorant of the mistake, it is​
A) ​a bilateral mistake.
B) ​a fraudulent misrepresentation.
C) ​a unilateral mistake.
D) ​unconscionable.

Accepted Answer

A bilateral mistake occurs when both parties to a contract are mistaken about a basic assumption on which the contract is made. In this scenario, since both Doyle and Ezra are ignorant of the mistake in the furnished information for the land sale, it constitutes a bilateral mistake.

Question 14

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

Accepted Answer

This is the principle of promissory estoppel, which allows for the enforcement of oral promises in certain circumstances if the promisee has relied on the promise to their detriment. However, it is important to note that oral contracts can be difficult to prove in court, and it is generally advisable to have written contracts whenever possible.

Question 15

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

Accepted Answer

This statement refers to the principle found in the Statute of Frauds, which requires certain types of contracts, including those where one party guarantees the debt or obligation of another, to be in writing to be enforceable.

Question 16

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

Accepted Answer

A party's oral agreement to pay another's debt can be enforceable under certain circumstances, such as if there was promissory estoppel or part performance of the agreement. However, it is generally more difficult to prove an oral agreement than a written one. Therefore, it is advisable to have such agreements in writing.

Question 17

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.​

Accepted Answer

If a party admits under oath that a contract was made, it can serve as evidence and the contract can be enforceable even if it was oral. However, it's important to note that oral contracts can be harder to prove in court, and it's always advisable to have a written agreement whenever possible.

Question 18

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

Accepted Answer

Promissory estoppel is a legal doctrine that allows an otherwise unenforceable contract to be enforced if one party relies on the other's promise and suffers harm as a result. Some states recognize this doctrine as a way to enforce oral contracts that would otherwise be unenforceable due to the statute of frauds or other requirements.

Question 19

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

Accepted Answer

The parol evidence rule generally prohibits the introduction of evidence of prior or contemporaneous agreements that contradict, modify, or vary the contractual terms of a written agreement, assuming the written contract is intended to be a complete and final expression of the parties' agreement.

Question 20

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

Accepted Answer

According to the statute of frauds, a memorandum evidencing an oral contract must include the essential terms, such as the names of the parties, the subject matter, the price, and the terms of payment. Without these essential terms, the contract may not be enforceable.

Quiz 10: Defenses to Contract Enforceability

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

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

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would​

A prenuptial agreement must be in writing to be enforceable.​

To be enforceable, a contract for a sale of goods priced at $500 or more must designate the buyer, seller, terms of payment, and price.​

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would​

Under the Statute of Frauds, land includes physical objects permanently attached to it, such as buildings, fences, trees, and soil.​

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

At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is​

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

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

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

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

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

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.​

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

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

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

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

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

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

A prenuptial agreement must be in writing to be enforceable.

To be enforceable, a contract for a sale of goods priced at $500 or more must designate the buyer, seller, terms of payment, and price.

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

Under the Statute of Frauds, land includes physical objects permanently attached to it, such as buildings, fences, trees, and soil.

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

At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is

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

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

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

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

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

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.

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

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

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