Question 1

What is "parol evidence?"

Accepted Answer

Parol evidence refers to any evidence outside of a written contract that is used to interpret the terms of the contract. This evidence can include oral statements, emails or other written messages, and other documents that were exchanged during negotiations. Parol evidence may be used to clear up any ambiguities or uncertainties in the written contract, but it cannot be used to contradict or change the terms of the contract. Therefore, choice (C) is the best answer as it accurately describes the role that parol evidence can play in any written contract.

Question 2

Assuming the existence of a complete and final written contract,the parol evidence rule would prohibit evidence of:

Accepted Answer

The parol evidence rule prohibits the use of prior or contemporaneous oral statements to alter, contradict, or add to the terms of a complete and final written contract. However, it does not prohibit subsequent modifications or explanations of ambiguities.

Question 3

John is president and sole shareholder of Photo,Inc.Photo,Inc.wishes to borrow money,but to do so,the bank requires John to orally guarantee to repay the loan if Photo,Inc.cannot.John's guaranty to repay is:

Accepted Answer

The "main purpose" or "leading object" rule is an exception to the statute of frauds, which requires certain contracts to be in writing. If the main purpose of the guarantor is to benefit themselves, the oral guaranty can be enforceable.

Question 4

Prior to signing a written agreement for hotel accommodations that provided for no refunds,the hotel manager stated to the guest,"We will give refunds if you have a good reason." Assuming that there was no fraud on the part of the hotel:

Accepted Answer

The parol evidence rule generally prevents the introduction of oral statements that contradict a written agreement, so the court would likely ignore the oral statement.

Question 5

What is the purpose of the parol evidence rule? Would it be better to simply allow all parol evidence in as evidence and leave it up to the jury how much weight to give to the evidence? Would this be better than not allowing the jury to see the evidence at all? What advantages and disadvantages would there be to eliminating the parol evidence rule?

Accepted Answer

The answer of What is the purpose of the parol...

Question 6

Mandy enters a written agreement to rent a motor home for six days.Persons under age 25 are not permitted to drive it under terms of the written agreement.Mandy calls the rental company on the third day and asks if Dave,age 23,can drive it.The rental company says Dave can drive it if Mandy pays an extra $10 per day when he returns the motor home.When Dave drives in to return the motor home,the rental company refuses to return the $500 deposit because the written contract says any breach of the contract will result in the forfeiture of the entire damage deposit.Which is true?

Accepted Answer

The parol evidence rule does not apply in this case because there is no dispute over the terms of the written agreement. The rental company's offer to allow Dave to drive the motor home for an extra fee is a separate agreement that does not modify the terms of the original written contract. Therefore, the rental company cannot rely on the forfeiture clause in the original contract to refuse to return the $500 deposit. Mandy should be entitled to the return of the deposit, minus any legitimate charges for damages or other fees incurred during the rental period.

Question 7

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods.Because neither of them had any paper handy,Jack wrote the following on a napkin: "Jill agrees to purchase from Jack,1,000 widgets to be delivered on July 1,2001,at a cost of $10,000,payable on delivery." Jill signed the napkin,although Jack did not sign it.Jack delivered the widgets per the contract,but Jill refuses to pay for them.If Jack sues Jill for the price of the goods,the most likely result is:

Accepted Answer

The writing on the napkin is sufficient under the Statute of Frauds because it contains the essential terms of the contract, including the subject matter, quantity, price, and delivery date. While it is true that Jack did not sign the contract, Jill's signature on the napkin is sufficient to bind her to the agreement. Therefore, Jack is likely to win if he sues Jill for the price of the goods.

Question 8

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,one half in cash at closing and the other half 90 days after closing.Buyer sends Seller a letter in which all the terms are included and is signed by Buyer.Seller never responds.When the closing date arrives,Seller refuses to transfer title.Buyer sues.This contract is:

Accepted Answer

The Statute of Frauds requires contracts for the sale of land to be in writing and signed by the party to be charged (Seller, in this case) to be enforceable. Since Seller did not sign any writing, the contract is unenforceable.

Question 9

A contract for the purchase of a bicycle states that the sale is made without any warranty and includes no service.In a separate paragraph of the contract it states that the seller will make free adjustments to the bicycle one time between 30 and 60 days after the purchase.This contract:

Accepted Answer

The contract clearly states that there is no warranty or service included in the sale, except for the one free adjustment between 30 and 60 days. This indicates that the seller is willing to provide one adjustment as part of the sale, but no other service. Therefore, the contract will only be interpreted to include the one adjustment and no others.

Question 10

Under the parol evidence rule,which of the following items could be used to interpret,explain,or otherwise affect a complete and final written contract?

Accepted Answer

The parol evidence rule allows for evidence of a subsequent oral agreement and evidence to explain an unclear term or phrase to be used to interpret or affect a complete and final written contract.

Question 11

How should an e-mail message be evaluated for meeting the Statute of Frauds requirements for a writing? How should the signature requirement be interpreted?

Accepted Answer

The answer of How should an e-mail message be evaluated...

Question 12

In December,2001,Mark signs a written consulting agreement for the period of January,2002,through May,2003.The contract is going well,so on June 15,2002,the parties orally agree to extend the arrangement by 4 months through September 2003.In October 2002,the client tells Mark that the 4-month extension will not be honored.Under these circumstances:

Accepted Answer

The extension is unenforceable because it cannot be completed within one year of when the extension agreement was made, thus falling under the Statute of Frauds which requires such agreements to be in writing.

Question 13

Buyer and Seller orally agree to a contract for the sale of 400 shirts at $10 per shirt.Seller fails to perform and Buyer sues.This contract is:

Accepted Answer

The contract is not enforceable because it is not in writing. The Statute of Frauds requires contracts for the sale of goods over $500 to be in writing. Additionally, the fact that the goods being sold are shirts is irrelevant under the statute.

Question 14

Which of the following is not a general rule of contract interpretation?

Accepted Answer

The other three options (A, B, and C) are general rules of contract interpretation that are widely accepted in the legal community. However, the rule that ambiguities in a contract are resolved in favor of the party who drafted the contract is not universally accepted and may vary depending on the jurisdiction and the specific circumstances of the case. Therefore, it is not a general rule of contract interpretation.

Question 15

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,with payment to be made within 10 days and the deed delivered within another 30 days.Buyer sends Seller a letter in which all these terms are included,along with a check for $100,000 that Seller deposits.Seller fails to deliver a deed,and Buyer seeks to enforce the contract.This contract is:

Accepted Answer

The answer of Seller and Buyer negotiate for the sale...

Question 16

Sam and Betty sign a written contract on June 1 in which Sam will sell his 1999 Honda Accord to Betty for $10,000,not including the CD player which is mounted in the trunk.Sam will remove the CD player from the car and keep it.They will exchange the car and money on June 10.On June 8,Betty tells Sam she will pay an extra $100 if he will include the CD player and Sam agrees.Which is true?

Accepted Answer

The parol evidence rule only applies to prior or contemporaneous oral or written statements made before the written contract was signed. In this case, the agreement about the CD player was made after the written contract was signed, so the parol evidence rule does not apply. Therefore, Sam and Betty can enter into the additional agreement about the CD player.

Question 17

A signed written contract states that "Sam will pay $900 for Skitravel to provide a week of skiing that includes lift tickets Sunday through Wednesday at Vail and Thursday through Saturday at Aspen.Skitravel will provide seven nights of lodging: Sunday,Monday,and Tuesday at Vail Hotel and Thursday,Friday,and Saturday at Aspen Lodge." The written contract failed to mention where Wednesday night accommodations would be.Which of the following statements,all made before this contract was signed,could be admitted into evidence?

Accepted Answer

This statement provides additional information about the contract that is not explicitly stated and is not contradictory to the terms of the contract.

Question 18

One night at a restaurant,Mark and Mary wrote up an agreement on a couple of napkins about a construction project whereby Mark would build a room addition to Mary's house.Mark said he would do this in exchange for Mary agreeing to marry him.It took two napkins because the agreement would not fit on a single napkin.On one of the napkins,it was stated that the addition would be built according to plans "that are drawn up on a yellow pad at Mary's house." Mark signed one of the napkins,but Mary signed neither.The contract price was $30,000.A few days later Mark saw the plans,which were more complex than he expected.He told Mary that he could not do the addition.Discuss Mark's claims that Mary did not sign the agreement,there is no sufficient writing,and that the parol evidence rule keeps the plans out of the agreement.

Accepted Answer

The answer of One night at a restaurant,Mark and Mary...

Question 19

Buyer and Seller enter into an agreement on April 26 for the sale of a piece of equipment for $595.This agreement is in writing and calls for delivery and payment on June 1.On May 10,the Buyer and Seller orally agree to reduce the price to $495 because the Buyer has agreed to delay the delivery date to July 1.Which of the following is true?

Accepted Answer

An oral modification to a written contract can be enforceable if certain conditions are met, such as the agreement being supported by valid consideration. In this case, the Buyer and Seller agreed to reduce the price and delay the delivery date, which could be considered valid consideration. The parol evidence rule would not apply because the modification occurred after the written agreement was made.

Question 20

Two adults enter into an oral contract for the sale and purchase of some land.All material facts were disclosed by the seller to the buyer.Which is true?

Accepted Answer

The answer of Two adults enter into an oral contract...

Quiz 6: Writing,formality,and E-Commerce Signature Law