Question 1

Undue influence is characterized by one party being put at a disadvantage in a contract due to:

Accepted Answer

Undue influence occurs when a party takes advantage of a fiduciary relationship with the other party, such as a doctor-patient or attorney-client relationship, to gain an unfair advantage in a contract. This can include manipulating the other party into making a decision that is not in their best interests.

Question 2

In a guaranty arrangement,the guarantor:

Accepted Answer

In a guaranty arrangement, the guarantor promises to pay the debt of another only if that other person does not pay. It is a secondary obligation, meaning the guarantor is liable only if the primary debtor defaults on the debt.

Question 3

When a contract is required to be in writing under the Statute of Frauds,which signatures must be on the contract when one party sues the other for enforcement of the contract?

Accepted Answer

Under the Statute of Frauds, the contract must be signed by the party against whom enforcement is sought, which is typically the defendant in a lawsuit.

Question 4

If a judge rules that a party has lost its case because of the Statute of Frauds,the judge has essentially stated that:

Accepted Answer

The Statute of Frauds requires certain contracts, such as those involving real estate or that cannot be performed within a year, to be in writing in order to be enforceable in court. If a party tries to enforce an oral contract that should have been in writing, the judge may rule that they have lost their case because of the Statute of Frauds. This does not necessarily mean that the losing party purposely deceived the other party or that they lied.

Question 5

A(n)________ contract occurs when one person agrees to answer for the debts or duties of another person.

Accepted Answer

A guaranty contract is when one person agrees to answer for the debts or duties of another person.

Question 6

Section ________ of the ________ is the Statute of Frauds provision that applies to the lease of goods.

Accepted Answer

Section 2A-201(1) of the Uniform Commercial Code (UCC) is the Statute of Frauds provision that applies to the lease of goods.

Question 7

What is the general purpose of the Statute of Frauds?

Accepted Answer

The Statute of Frauds is designed to ensure that certain types of contracts are in writing to prevent misunderstandings and fraud, ensuring that the terms are not forgotten.

Question 8

If a contract is not enforced on the basis of the Statute of Frauds,the court has based its decision on the presence of which type of fraud?

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing to be enforceable, not based on the presence of fraud.

Question 9

Many state Statutes of Frauds require that agents' contracts to sell real property covered by the Statute of Frauds be in writing to be enforceable.The requirements is often referred to as the ________ rule

Accepted Answer

The requirement that agents' contracts to sell real property covered by the Statute of Frauds be in writing to be enforceable is known as the equal dignity rule. The term "equal dignity" refers to the idea that the written authorization given by the principal to the agent must be of the same level of formality as the contract that the agent is authorized to sign on behalf of the principal. In other words, if the contract for the sale of the property must be in writing to be enforceable (as is the case under many Statutes of Frauds), then the authorization given to the agent to sign the contract on behalf of the principal must also be in writing.

Question 10

For Statute of Frauds purposes,an interest in land includes (but is not limited to):

Accepted Answer

The answer of For Statute of Frauds purposes,an interest in...

Question 11

Both the common law of contracts and the Uniform Commercial Code (UCC)permit several writings to be ________ to form a single written contract.

Accepted Answer

The term used in this context is "integrated." Both common law and UCC allow for multiple writings to be integrated into a single written contract.

Question 12

Most Statutes of Frauds require leases for a term of more than ________ to be in writing.

Accepted Answer

The Statute of Frauds requires leases for a term of more than one year to be in writing.

Question 13

In general,the Statute of Frauds sets requirements for:

Accepted Answer

The Statute of Frauds requires certain types of contracts to be in writing in order to be enforceable, such as contracts for the sale of goods over a certain amount, contracts for the transfer of real property, and contracts that cannot be performed within one year. It does not pertain to damages, misrepresentations, reliance, or punitive damages.

Question 14

Under the Statute of Frauds,any contract that transfers an ownership interest in ________ property must be in writing to be enforceable.

Accepted Answer

The Statute of Frauds requires contracts that transfer an ownership interest in real property (land or buildings) to be in writing to be enforceable.

Question 15

The most recent revision to UCC 2-201 requires that contracts for the sale of goods costing ________ must be in writing to be enforceable.A state must adopt this amendment for it to become effective; most states,however,have not enacted this change.

Accepted Answer

The most recent revision to UCC 2-201 requires that contracts for the sale of goods costing $5,000 or more must be in writing to be enforceable. However, this amendment is not automatically effective and must be adopted by individual states, many of which have not enacted this change.

Question 16

Which of the following is a correct statement regarding the applicability of the Statute of Frauds to easements?

Accepted Answer

The Statute of Frauds does apply to easements, but only express easements must be in writing to be enforceable. Implied easements can be created through the conduct and actions of the parties, and do not necessarily need to be in writing.

Question 17

What is the effect of the part performance exception under the Statute of Frauds?

Accepted Answer

The part performance exception allows the court to enforce an oral contract for the transfer of an interest in real property if the party seeking enforcement has part performed the contract. In such cases, the court may order the other party to perform, even though the contract is oral. The exception does not apply to other types of contracts.

Question 18

What does "incorporation by reference" do in the context of contract law?

Accepted Answer

Incorporation by reference is a mechanism by which a separate document or writing that may contain terms or conditions pertinent to the transaction can become part of a contract's terms. This means that the parties are agreed upon the terms mentioned in the separate writing and are bound by those terms.

Question 19

Which of the following is one of the general rules of contract interpretation?

Accepted Answer

Handwritten words prevail over both preprinted and typed words because they are considered to reflect the most recent and specific intentions of the parties involved in the contract.

Question 20

The one-year period for determining whether a contract is required to be in writing under the statute of frauds is measured from the date that:

Accepted Answer

The one-year period under the statute of frauds is measured from the date the contract is formed until its stated completion date, not when performance begins or ends.

Quiz 12: Genuineness of Assent and Statute of Frauds