Deck 16: Writing

Question 1

Mr.Green signs a memorandum of understanding with Mr.Blue to by his widgets.Mr.Green signs the last page of the memorandum by writing his initials in cursive.A court will enforce the agreement between Mr.Green and Mr.Blue.

Answer 1

True
Explanation: Any writing,mark,initials,stamp,engraving,or other symbol placed or printed on a memorandum will suffice as a signature.

Question 2

The statute of frauds does not cover contracts in which marriage is the consideration.

Answer 2

False
Explanation: Contracts of marriage are covered by the statute of frauds.

Question 3

Parol evidence can be used to contradict the terms of a partially integrated contract.

Answer 3

False
Explanation: In order for the parol evidence rule to come into effect,the contract has to be completely integrated.It is not applicable to partially integrated contracts.

Question 4

Article 2 of the UCC has no parol evidence rule.

Question 5

Parol evidence can be used to resolve ambiguities in a completely integrated written contract.

Question 6

Mr.Blue wishes to sell his home to Mr.Green.The court will refuse to recognize and enforce the agreement between Mr.Blue and Mr.Green.

Question 7

A signature is sufficient to form the basis of authenticity of a written contract.

Question 8

In order to satisfy the writing requirement of the statute of frauds,both parties must provide the entire agreement in writing.

Question 9

The statute of frauds applies exclusively to executory contracts.

Question 10

Mr.Yellow agreed to pay the debt created by Mr.Blue in his contract to Mr.Green.This agreement is called a collateral contract.

Question 11

Some courts allow promissory estoppel to bind parties to oral contracts that otherwise would be unenforceable under the statute of frauds.

Question 12

The statute of frauds covers all contracts that are for an indefinite period of time.

Question 13

If the parties make an agreement that is partly printed and partly handwritten,the handwritten provisions prevail over the printed provisions in case of a conflict between them.

Question 14

In general,ambiguities in a written agreement are resolved against the party who drafted the agreement.

Question 15

There is a requirement that all contracts be in writing.

Question 16

A mortgage does not have to be written.

Question 17

According to the general rules of interpretation of contracts,ordinary words are given their general meanings and the technical ones are given their technical meaning.

Question 18

An oral contract within the UCC statute of frauds can be enforced without a writing only if it involves the sale of specially manufactured goods.

Question 19

The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.

Question 20

An administrator makes an oral promise to pay the debts of the deceased.The debts amount to $60,000.This oral promise is enforceable.

Question 21

Rick tells Dan that Sue will inherit a mansion if she pays him back an old debt.Since Sue is unable to pay the debt,Dan offers to pay it provided that he gets the mansion from Rick.The agreement between Dan and Rick need not be in writing under the:

A) collateral contract rule.
B) parol evidence rule.
C) leading object rule.
D) part performance rule.

Question 22

Which of the following is covered by the statute of frauds?

A) A real estate mortgage
B) A $300 contract for the sale of pencils
C) A contract that can be performed within a week
D) A $100 VCR repair

Question 23

Under the _____,no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage.

A) parol evidence rule
B) leading object rule
C) collateral contract rule
D) part performance rule

Question 24

The statute of frauds requires that:

A) some contracts be evidenced by a writing.
B) all contracts involving fraud must be void.
C) all three-party contracts be collateral ones.
D) there can be no secondary debts in a contract.

Question 25

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor,the contract:

A) is the opposite of an original contract.
B) is considered void.
C) is outside the statute of frauds.
D) needs to be in writing.

Question 26

A bilateral contract is "taken out of the statute of frauds" when:

A) it is completed within a year from the day of its existence.
B) it is fully performed by at least one party.
C) it is put in writing.
D) it has strict rules of performance.

Question 27

Mr.Green has a month to month lease for an apartment owned by Mr.Blue.The lease between Mr.Green and Mr.Blue is oral.How will the court handle the lease?

A) The court will recognize and enforce the lease.
B) The court due to the statute of frauds will not recognize or enforce the lease.
C) The court will not recognize the lease unless there is a subtenant.
D) The court will only recognize the lease if requested by the Secretary of State.

Question 28

Which statement about the statute of frauds is true?

A) All contracts must be in writing in order to be enforced.
B) Contracts for the sale of goods for $500 or more must be in writing in order to be enforced.
C) Contracts for the sale of land for $500 or more must be in writing in order to be enforced.
D) All employment contracts must be in writing in order to be enforced.

Question 29

Why is the contract for the insurance of a building not covered within the real estate provision of the statute of frauds?

A) It does not involve the transfer of interests in land.
B) It involves a physical asset.
C) It involves two or more parties.
D) It need not be in writing.

Question 30

An oral contract for the sale of land that has been completely performed by the vendor:

A) is part of the statute of frauds.
B) can be enforced without any writing.
C) needs to be signed by the parties.
D) has to be testified by witnesses.

Question 31

The term Parol Evidence means that outside conversations cannot be used to add or modify a completely integrated contract.

Question 32

Most states' statutes of frauds do not require land leases to be in writing unless they:

A) involve more than two parties.
B) are ancestral property.
C) are going to be sold permanently.
D) are for a year or more.

Question 33

Smith and Benson make an oral contract for the sale of some land at a price of $500,000.After paying Smith $400,000 of the purchase price,Benson takes possession of the land.One month later,Smith wants to boot Benson off the land.His argument is that the parties' oral agreement is unenforceable under the statute of frauds.Which of the following is most correct?

A) Smith is correct,because the contract is for an amount greater than $500.
B) Smith is correct,because this is an oral contract for the sale of real estate.
C) Smith is incorrect,because the contract is for an indefinite period of time.
D) Smith is incorrect,because Benson paid part of the purchase price and took possession.

Question 34

Sean made an oral promise to sell a piece of land to Sean.Sean took a huge loan from the bank by mortgaging everything he had.After taking almost half the money from Manny,Sean decides that he wants to sell the land to Jason who is offering a higher price for the property.Which of the following doctrines can Manny take recourse to in order to implement his oral contract with Sean?

A) Integration
B) Subsequent agreement
C) Confirmatory memorandum
D) Part performance

Question 35

A contract that cannot be performed within one year from the day on which it comes into existence:

A) is within the statute of frauds.
B) need not be in writing.
C) is called a unilateral contract.
D) is essentially illegal.

Question 36

Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd,480 widgets (goods)at a price of $480.Later,the parties want to modify the contract so that the price would become $520.This modification:

A) must be in writing.
B) must be oral because the first contract was oral.
C) can be oral but need not be.
D) is unenforceable because the first contract is unenforceable.

Question 37

Big Bank is a major creditor of Bonwill Department Store.After a major loss in profits due to poor holiday sales,Big Bank decides to help keep Bonwill from bankruptcy.Big bank orally promises Mary Tudor,a supplier to Bonwills,that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill.Most likely,Big Bank's oral agreement:

A) is unenforceable under the statute of frauds.
B) is unenforceable because it is a collateral contract.
C) is enforceable under the "main purpose" or "leading object" exception to the statute.
D) is enforceable because a collateral contract is not covered under the statute of frauds.

Question 38

On May 1,Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450.Dix paid Wilk $100 as a deposit.The following day,Wilk received another offer to purchase the land for $650,the fair market value.Wilk immediately notified Dix that Wilk would not sell the land for $450.If Dix sues Wilk for specific performance,Dix will:

A) prevail,because the amount of the contract was less than $500.
B) prevail,because there was part performance.
C) lose,because the fair market value of the land is over $500.
D) lose,because the agreement was not in writing and signed by Wilk.

Question 39

Which of the following is true of the statute of frauds?

A) It prevents the use of oral evidence to contradict the terms of a written contract.
B) It applies to all contracts having consideration valued at $500 or more.
C) It requires the independent promise to pay the debt of another to be in writing.
D) It applies to all real estate leases.

Question 40

The statute of frauds was created in 1677 in what country?

A) United States of America
B) Germany
C) England
D) Russia

Question 41

A memorandum on the sale of goods that does not indicate the _____ of goods to be sold will not satisfy the UCC's writing requirement.

A) quality
B) quantity
C) delivery
D) cost

Question 42

Sammy entered into an oral contract with Macaulay for sale of goods amounting to $900.Sammy paid the amount.But Macaulay refused to deliver the goods.Sammy thus suffered serious losses because of Macaulay's breach of contract.Sammy sued Macaulay.At the same time Macaulay took the defense under statute of frauds.Under which principle is Sammy protected?

A) Tortious liability
B) Vicarious liability
C) Part performance
D) Promissory estoppel

Question 43

In order to satisfy the statute of frauds,the parties' writing must be:

A) signed by both parties.
B) in legalese.
C) signed by the "party to be charged."
D) compressed into a single document.

Question 44

Which of the following is a uniform state law designed to remove "barriers to electronic commerce validating and effectuating electronic records and signatures"?

A) Uniform Electronic Transactions Act (UETA)
B) Electronic Signatures in Global and National Commerce Act (E-Sign)
C) Electronic Communications Privacy Act (ECPA)
D) Graham-Leach-Bliley Act (GLBA)

Question 45

Which of the following is admissible with respect to a partially integrated contract?

A) Evidence that seeks to make the contract completely divisible.
B) Evidence that resolves ambiguities in the contract.
C) Evidence that the contract is unconditional on the happening of some event.
D) Evidence that contradicts the contract's provisions.

Question 46

Which of the following is true regarding the statute of frauds' writing requirement?

A) The writing must be contained in one document.
B) The writing must be signed by both parties.
C) The writing must be signed by the buyer.
D) The writing must indicate the parties' identities.

Question 47

The Parol Evidence rule is relevant only in cases:

A) that are oral in nature.
B) where parties have expressed an agreement.
C) of the sale of goods.
D) subsequent modification do not have a suitable consideration.

Question 48

King sent Foster,a real estate developer,a signed offer to sell a specified parcel of land to Foster for $200,000.King,an engineer,had inherited the land.Foster telephoned King the same day that he received his letter and accepted the offer.Which of the following statements concerning the contract is correct under the statute of frauds?

A) No contract was formed because Foster did not sign the offer.
B) No contract was formed because King is not a merchant.
C) A contract was formed,although it would be enforceable only against King.
D) A contract was formed but it is unenforceable.

Question 49

A fully "integrated" contract under the parol evidence rule is one that:

A) is intended by the parties to include both goods and services.
B) is intended by the parties to include several agreements.
C) is intended by the parties to be a preliminary statement of their agreement.
D) is intended by the parties to be the complete,final statement of their agreement.

Question 50

April and Brian entered into a completely integrated written contract.Before the written contract was completed,April made an oral statement to Brian regarding the terms of the contract.This statement was not contained in the written contract.Under the parol evidence rule,evidence of April's oral statement would be admissible if it were used to:

A) create a completely new agreement.
B) introduce an ambiguous term in the written contract.
C) prove an additional term consistent with the written agreement.
D) change the terms of the written contract.

Question 51

Mr.Green and Mr.Blue contract orally to transfer 500 widgets for $1000.Mr.Blue sends Mr.Green a receipt one week after the agreement.If Mr.Green now refuses to recognize the agreement a court will find what?

A) That a memorandum of understanding was created by the receipt sent by Mr.Blue and an enforceable agreement exists
B) That no agreement exists because there is no typed agreement according to the statute of frauds
C) There is no enforceable agreement because the receipt was not sent at the same time as the agreement
D) The agreement is not enforceable because the Secretary of State did not approve the agreement

Question 52

The underlying purpose of the statute of frauds is to:

A) prevent frauds in general.
B) corroborate the existence of the oral contract.
C) punish those who commit frauds.
D) make fraud illegal.

Question 53

With regard to an agreement for the sale of real estate,the statute of frauds:

A) does not require that the agreement be signed by all parties.
B) does not apply if the value of the real estate is less than $500.
C) requires that the entire agreement be in a single writing.
D) requires that the purchase price be equal to the value of the real estate.

Question 54

The Electronic Signatures in Global and National Commerce Act (E-Sign):

A) invalidates agreements between parties conducting transactions by electronic means.
B) states that electronic transactions on subjects covered by the statute of frauds require an additional writing.
C) overrides state laws that are inconsistent with the UETA.
D) creates barriers to e-commerce by invalidating electronic records and digital signatures.

Question 55

If it is not indicated in the memorandum,where should the parties sign to make it enforceable?

A) Right corner
B) Left corner
C) Bottom
D) Any place on memorandum

Question 56

The Uniform Commercial Code changed the traditional statute of frauds rule by making it:

A) easier to satisfy that rule.
B) mandatory to have contracts in writing.
C) apply to service contracts only.
D) apply to real estate contracts only.

Question 57

Bruce told Adam that he was selling his house in Syracuse,New York.Adam sent Bruce an e-mail containing an offer of $300,000 for the house.Bruce responded via e-mail that he wanted $315,000 for the house.After further e-mails,the parties finally agreed on a sale with a price of $310,000.A series of e-mails contained the terms of the sale,and all included a salutation containing their typewritten names.However,Bruce later decided to sell the house to Marty for $325,000.Adam sued Bruce,claiming that Bruce breached their contract for the sale of the house.Most likely,Adam will:

A) lose,because the contract does not meet the statute of frauds.
B) lose under the parol evidence rule.
C) win,because the essential terms of the contract were set forth in the signed e-mails.
D) win,because of the partial performance exception to the statute of frauds.

Question 58

Whose signatures are needed in order to satisfy the statute of frauds?

A) Only the signatures of witnesses to the agreement are required.
B) Only the signature of the party,attempting to enforce the contract,is required.
C) Only the signature of the party against whom enforcement is being sought.
D) Only the signature of the third party to the contract,the beneficiary,is required.

Question 59

The marriage provision in the statute of frauds is inapplicable in agreements that involve:

A) post-nuptial promises.
B) oral one-sided promises of marriage.
C) mutual promises to marry.
D) pre-nuptial promises.

Question 60

The "confirmatory memorandum" exception to the UCC's statute of frauds provision:

A) requires that the memorandum be signed by the party to be bound.
B) requires that the memorandum be sent within ten days after the contract is made.
C) applies even though the memorandum does not satisfy the UCC's writing requirement.
D) requires that both parties to the contract be merchants.

Question 61

A written agreement was signed by two parties and it was intended to be their entire agreement.The parol evidence rule will prevent the admission of evidence that is offered to:

A) prove the existence of a contemporaneous oral agreement that modifies the contract.
B) prove the existence of a subsequent oral agreement that modifies the contract.
C) explain the meaning of an ambiguity in the written contract.
D) establish that fraud had been committed in the formation of the contract.

Question 62

Davis owes a $5 million debt to the C Bank.He also owes $2 million to Samuel.However right now,Davis is having trouble paying either loan.C Bank is willing to finance Davis's debt,but only if Samuel co-signs.Samuel,who fears that he'll get nothing on his $2 million loan if Davis doesn't get some help from the bank,is willing to do so.Thus,C Bank,Samuel and Davis complete a three-party agreement in which the bank agrees to finance the $5 million debt,Davis agrees to pay it back at a certain rate over a certain term,and Samuel agrees to pay the debt "in the event that Davis first defaults." Is this agreement covered by the statute of frauds? Why or why not?

Question 63

Jones goes to a clothing store and orders $1000 worth of clothing on credit.The salesperson writes up a receipt describing the terms of the deal,but Jones does not sign anything.Three days later,the store delivers $750 worth of clothing,which Jones accepts.One day later,however,Jones decides that he doesn't want the clothing.When the store insists that he has to pay the full $1000,Jones pleads the statute of frauds.Does the statute of frauds give Jones a defense against payment here?

Question 64

A merger clause is also known as an:

A) interpretation clause.
B) interrogation clause.
C) integration clause.
D) instrumental clause.

Question 65

Arnold promised to sell his car to Adams in lieu of full payment of his debt.However in the written contract,Adams had forgotten to specify which car he wants to sell.Is there any remedy?

Question 66

Subsequent agreements are treated in what way under the parol evidence rule?

A) Subsequent agreements are admissible under the parol evidence rule
B) Subsequent agreements are not admissible unless they were filed with a governmental agency
C) Subsequent agreements are not admissible since they attempt to modify an integrated contract
D) Subsequent agreements are not admissible unless that involve two international parties

Question 67

Ward is attempting to introduce oral evidence in an action relating to a written contract between Ward and Weaver.Weaver has pleaded the parol evidence rule.Ward will be prohibited from introducing parol evidence if it relates to:

A) a modification made several days after the contract was executed.
B) a change in the meaning of an unambiguous provision in the contract.
C) fraud in the inducement.
D) an obvious error in drafting.

Question 68

Ned and Bill complete an oral contract for the sale of land from Ned to Bill for $100,000.Bill pays Ned the $100,000,and then begins to build his house on the land.At this point,Ned says that the deal is off and refuses to convey the deed to Bill.In doing so,Ned relies on the statute of frauds.Is this agreement enforceable by Bill?

Question 69

In entering into contracts for services,customers might be influenced by statements made by sales representatives.Businesses offering services often use standardized form contracts.Under the parol evidence rule,pre-contract statements made in these circumstances are effectively unenforceable.How can a business effectively and ethically use standardized form contracts and the parol evidence rule?

Question 70

Abel hired Carr to restore Abel's vintage car for $800.The terms of their oral agreement provided that Carr was to complete the work within 18 months.Actually,the work could be completed within one year.Can Abel insist that the work be completed within a year instead of the 18 months?

A) No,because the agreement covers services with a value in excess of $500.
B) No,because the agreement covers a time period in excess of one year.
C) Yes,because personal service contracts are exempt from the statute of frauds.
D) Yes,because the work can be completed within one year.