Question 1

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable.Such a contract is normally

Accepted Answer

The answer of Sonya and Taylor enter into an oral...

Question 2

Quest Holdings,Inc.,orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp.Ray pays part of the rent,takes possession,and improves the property for use by his enterprise.The contract is most likely enforceable by

Accepted Answer

Even though the contract was only oral, both parties entered into an agreement where Ray paid part of the rent, took possession, and made improvements to the property for his use. This indicates that both parties intended to create a legal relationship, and as such, the contract is enforceable by both parties.

Question 3

Larue buys an iPod for $150 and a new laptop for $1,200,and signs a one-year employment contract for a $4,800 monthly salary to start at the beginning of the next month.The Statute of Frauds covers

Accepted Answer

The answer of Larue buys an iPod for $150 and...

Question 4

Commercial Decor,Inc.,files a suit against Discount Mart Corporation,asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel.This doctrine applies in

Accepted Answer

The doctrine of promissory estoppel is recognized in some states, but not all. The specific laws vary by jurisdiction.

Question 5

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks,Inc.Lucas notes the terms on a sheet of Mountain Spring stationery and signs it.This agreement is most likely enforceable against

Accepted Answer

The agreement is enforceable against Lucas because he signed the written terms, indicating his intention to be bound by the agreement. However, without Natural Soft Drinks' signature or written acceptance, it may not be enforceable against them.

Question 6

Whitewater Canyon Adventures,Inc.,and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each.Before Whitewater takes possession of the rafts,this contract is enforceable by

Accepted Answer

Under the Statute of Frauds, contracts for the sale of goods priced at $500 or more must be in writing to be enforceable. Since this is an oral contract for $10,000, it is not enforceable by either party.

Question 7

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn.This promise is enforceable

Accepted Answer

The promise is enforceable only if it is in writing due to the Statute of Frauds, which requires certain contracts, including those made in consideration of marriage, to be in writing to be enforceable.

Question 8

Grain Farms,LLC,and Harvest-to-Market Truck & Transport Company sign a written contract that does not involve a sale of goods.To be enforceable,the writing must include

Accepted Answer

A written contract that does not involve a sale of goods must include a statement of the consideration to be enforceable, as consideration is a necessary element of a valid contract.

Question 9

The owners of Ngai Rice Valley Farms,Inc.,and Ozuru Markets,Ltd.,are citizens of countries that had ratified the Convention on Contracts for the International Sale of Goods.They enter into a contract for a sale of rice.To be enforceable,this contract

Accepted Answer

The Convention on Contracts for the International Sale of Goods (CISG) does not require contracts to be in writing to be enforceable.

Question 10

Hal's True Hardware Stores and Ideal Tools,Inc.,sign a written contract for a sale of goods.To be enforceable,this written contract must include

Accepted Answer

A quantity term is one of the essential elements that a contract for the sale of goods must include to be enforceable. It specifies the number or amount of goods to be sold, such as the number of hammers or boxes of nails Hal's True Hardware Stores and Ideal Tools, Inc., agreed to sell and purchase. A correct title or date or parties' contact information might be useful but are not essential to make a written contract enforceable.

Question 11

Fact Pattern 16-B1 (Questions B18-B19 apply)
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie.The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties,Inc.,after which Alain and Brie will negotiate a price.
-Refer to Fact Pattern 16-B1.Brie later disputes some of the provisions of the deal with Alain.If the dispute results in litigation,a court will most likely admit evidence of additional terms that are

Accepted Answer

If the additional terms are consistent with the terms in the written contract, they may be admitted as evidence to clarify the parties' intentions. However, contradictory terms would create confusion and uncertainty, and ambiguous terms may not provide sufficient guidance to the parties. Clear terms would not require the admission of additional evidence. Therefore, choice B is the best option.

Question 12

Fact Pattern 16-B1 (Questions B18-B19 apply)
Alain and Brie sign a contract for the sale of Alain's Coffee Café to Brie.The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Alain must first buy the building from Developed Commercial Properties,Inc.,after which Alain and Brie will negotiate a price.
-Refer to Fact Pattern 16-B1.The writing that Alain and Brie signed is

Accepted Answer

The writing that Alain and Brie signed is a partially integrated contract because it is a final statement of most, but not all, of the terms of their agreement.

Question 13

Sea Harvest Fish Company and Temp Refrigerated Storage Company enter into a long-term lease for a warehouse.To be enforceable,the lease must be in writing

Accepted Answer

Under the Statute of Frauds, contracts for leases of real property for a term exceeding one year must be in writing to be enforceable, regardless of the amount of rent to be paid. Hence, the lease between Sea Harvest Fish Company and Temp Refrigerated Storage Company must be in writing to be enforceable.

Question 14

Best Silo Storage applies for a business loan from County Credit Union.To help Best Silo get the loan so that it will be able to stay in business and fulfill a deal it has made with her,Dakota promises the credit union's loan officer that she will repay the loan if Best Silo does not.To be enforceable,Dakota's promise

Accepted Answer

The answer of Best Silo Storage applies for a business...

Question 15

Dinner Theater files a suit against Entertainers Agency,Inc.,to enforce a contract.The only written evidence of the contract is a memo on Entertainers's letterhead signed by Fiorello,a company officer.The contract can be enforced if the memo includes

Accepted Answer

The memo must include all essential terms in order to be enforceable. This means that it should contain the specific details of the agreement such as the services to be provided, the payment terms, and any other key provisions.

Option A is incorrect because while a correct title may be helpful, it is not necessary for the contract to be enforceable.

Option B is also incorrect because while the signature and title of the company officer may be helpful in establishing the authenticity of the memo, it is not necessary for the contract to be enforceable.

Option D is incorrect because the source of funds to be paid is not an essential term of the contract. While it may be relevant to the parties, it is not required for the contract to be enforceable.

Question 16

Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger.For this promise to be enforceable under the doctrine of promissory estoppel,

Accepted Answer

For the doctrine of promissory estoppel to apply, Carolina must have relied on Benito's promise to her detriment. This means that Carolina must have taken some action (such as foregoing a sale to someone else or making modifications to the Charger) based on Benito's promise, and suffered some harm or loss as a result. The fact that the Charger is a customized good or that there is no written evidence of the deal does not affect the application of promissory estoppel. The fact that Benito's promise was overheard by a third party also does not affect the application of promissory estoppel, as the doctrine is concerned with the relationship between the promisor and promisee, not with third-party evidence of the promise.

Question 17

Colette and Dealership Auto Sales Company enter into an oral contract under which Dealership Auto agrees to provide Colette with lifetime employment.This contract may be enforceable by

Accepted Answer

An oral contract for lifetime employment can be enforceable by either party involved in the contract, Colette or Dealership Auto, as long as it does not violate the statute of frauds or other legal requirements.

Question 18

Abner tells a representative of Brass & Woodwind Musical Instruments,Inc.,that he will pay for Claudia's trumpet if she does not.Abner does not secure any personal benefit for this promise.Abner's oral promise is enforceable as a contract by

Accepted Answer

Abner's promise lacks consideration as he did not secure any personal benefit. Therefore, it is not enforceable as a contract by any of the parties involved.

Question 19

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies,Inc.After three boxes are delivered and accepted,Physicians Clinic repudiates the contract.Quality Medical can enforce the contract to

Accepted Answer

The contract can be enforced to the extent of the three accepted boxes. Since the order was placed by phone, it is still considered a valid contract. However, the repudiation of the contract by Physicians Clinic means that they are not obligated to accept any future boxes of gloves. Therefore, Quality Medical can only enforce the contract to the extent of the boxes that have already been delivered and accepted.

Question 20

Guardian Security,Inc.,and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them.This contract may be enforceable by

Accepted Answer

Under the doctrine of promissory estoppel, an oral contract can be enforceable if one party justifiably relies on the promise of the other party and suffers a detriment as a result. Therefore, either Guardian Security or Hedge Fund may be able to enforce the oral contract. However, it is recommended to have a written contract in place to avoid litigation and ambiguity. A third party, such as a Hedge Fund shareholder, is generally not able to enforce a contract between two other parties unless there is a specific provision in the contract allowing for such enforcement.

Quiz 16: The Writing Requirement and Electronic Records