Question 1

Rick and Rita ordered as party favors for their wedding 500 t-shirts personalized a the young couple's photograph from Daniel Graphics.Daniel Graphics had just finished printing the shirts when Rick called and canceled the order.Daniel Graphics will be able to enforce the agreement even though there was no writing.

Accepted Answer

Under the Uniform Commercial Code (UCC), an oral contract for the sale of goods over $500 is generally unenforceable unless there is a written confirmation. However, if the goods are specially manufactured and not suitable for sale to others, the seller can enforce the contract even without a written agreement.

Question 2

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

The Uniform Commercial Code provides for the concept of "merchant acceptance" which means that a merchant who receives a written agreement and fails to object to its contents within a reasonable period of time may be deemed to have accepted the terms of the contract and be legally bound by them, even if they did not sign it.

Question 3

A contract that cannot be performed within one year is void if it is not written.

Accepted Answer

False

Question 4

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

The statute of frauds requires certain contracts to be in writing in order to be enforceable. The writing must be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises. It does not have to be a formal written document drafted by an attorney, nor does it need to be notarized.

Question 5

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

Accepted Answer

An interest in land includes all of the options listed - a house, a real estate mortgage, and an easement - and therefore, the best choice is D.

Question 6

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 it is generally recommended to have contracts involving the sale of real estate in writing, some states recognize oral contracts for such transactions. In addition, the Statute of Frauds requires certain types of contracts to be in writing, but there may be exceptions depending on the circumstances and the applicable state law. However, the specific details of this scenario are not provided, so the answer cannot be definitively determined.

Question 7

Alice is president and sole shareholder of Best Fabrics,Inc.Best Fabrics,Inc.wishes to borrow money,but to do so,the bank requires Alice to orally agree to pay the debt of the corporation if Best Fabrics,Inc.cannot.Alice's guarantee to repay is:
A)unenforceable under the parole evidence rule.
B)enforceable because of the leading object rule.
C)enforceable because there is an insurable interest.
D)unenforceable because it is a collateral promise.

Accepted Answer

The leading object rule states that if a primary purpose of the guarantor is to secure an economic benefit for herself or a third party, then the guaranty is enforceable even if it is not in writing. Here, the bank requires the guarantee from Alice in order to lend money to the corporation, and the primary purpose of Alice's guarantee is to benefit the corporation by enabling it to borrow money. Therefore, the guarantee is enforceable even though it is not in writing.

Question 8

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

Accepted Answer

This statement is false. Once a contract is fully executed, it cannot be rescinded unless there is a legal justification for rescission such as fraud, misrepresentation, duress, or mistake. The statute of frauds does not provide a basis for rescission; it merely requires certain types of contracts to be in writing to be enforceable.

Question 9

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 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

The contract is enforceable even without Robin's signature because both parties are merchants. Under the Uniform Commercial Code (UCC), if both parties are merchants, a written confirmation of an oral agreement sent by one party and signed by the other is binding on both parties, even if it is not signed by the party against whom enforcement is sought. Therefore, Bellman can sue Robin for breach of contract.

Question 10

Raymond agrees to transfer an easement right to Sandra for $1,000.This contract is not within the statute of frauds and therefore doesn't need to be in writing to be enforceable.

Accepted Answer

The transfer of an easement right is generally considered to be a type of real estate transaction, which falls under the statute of frauds. This means that any agreement for the transfer of an easement right must be in writing in order to be enforceable in court. Therefore, the contract between Raymond and Sandra for the transfer of the easement right should be in writing to be valid.

Question 11

In the Seton Co.v.Lear Corp.,the federal Court of Appeals applied the merchant exception rule to hold that a confirming memo between merchants formed a contract.

Accepted Answer

The statement correctly describes the holding in the Seton Co. v. Lear Corp. case, where the court applied the merchant exception rule to deem that a confirming memo between merchants formed a binding contract.

Question 12

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 performed their obligations under the contract and it was fully executed, the fact that it was oral does not invalidate it.

Question 13

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

According to the statute of frauds, a collateral promise, such as Ted's promise to pay the loan if Amanda defaults, must be in writing to be enforceable.

Question 14

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 the correct statement of the requirements under the statute of frauds. The writing must be signed by the defendant and contain certain specific information.

Question 15

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 parole evidence rule applies.

Accepted Answer

The contract is enforceable because Willis has partially performed the oral contract and made improvements on the land. This is known as part performance and is an exception to the statute of frauds. Leslie's refusal to transfer the title is a breach of contract, and Willis can seek specific performance or damages. The parole evidence rule does not apply here as there is no dispute as to what the terms of the oral contract were.

Question 16

Ramona 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 orally agreed to work for Brahma,Inc.for...

Question 17

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

Accepted Answer

The parol evidence rule does not bar evidence that clarifies the terms of a contract when there is ambiguity, such as the quantity of sugar required in a requirements contract.

Question 18

parole 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 anything that may supplement or explain the written contract, such as verbal agreements or previous negotiations, but is not included in the actual written contract.

Question 19

Any contract involving a sale of goods of $500 or more must be in writing to be enforceable.

Accepted Answer

The answer of Any contract involving a sale of goods...

Question 20

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 30,2009." This writing is sufficient under the statute of frauds to make the contract enforceable.

Accepted Answer

The answer of Patrick owned an acre of land which...

Quiz 14: Written Contracts