Question 1

Which of the following contains all the elements of a written agreement that can be enforceable under law?

Accepted Answer

Choice D contains all the elements of a written agreement that can be enforceable under law, including the identification of the parties involved, the specific terms of the agreement, and their signatures indicating their consent to the terms. Choices A, B, and C are missing important elements such as a clear statement of the terms and conditions of the agreement, and the signatures of both parties indicating their agreement to those terms.

Question 2

Charles orally promises Holly that he will marry her.He also states that if they ever get divorced,then he will transfer one-half of his assets to Holly.They marry and divorce within a year.Which of the following is true of Charles's promise to Holly?

Accepted Answer

The promise made by Charles is a promise to transfer assets upon divorce, which falls under the category of transfers of property. According to the Statute of Frauds, any promise involving the transfer of property or assets must be in writing to be legally enforceable. Therefore, the promise made by Charles to Holly is not legally enforceable because it was not written.

Question 3

According to the ________,whenever an ambiguous term,clause,or line is found in a prewritten contract,that ambiguity is interpreted against the party who wrote the contract.

Accepted Answer

This rule is known as the contra proferentem rule or "against the offeror" rule, which means that any ambiguity in the contract will be resolved in favor of the party who did not write the contract. This ensures that the party with stronger bargaining power cannot use ambiguous language to take advantage of the other party.

Question 4

Gabriel applies for a home loan.Mark signs the agreement promising to pay off the debt in case Gabriel fails to do so.In this case Mark is:

Accepted Answer

Mark is the guarantor, which means he is the party who agrees to pay off the debt if the original borrower (Gabriel) fails to do so.

Question 5

________ contracts for the sale of goods of $500 or more are ________ if the contract ________.

Accepted Answer

Oral contracts for the sale of goods of $500 or more are generally not enforceable under the Statute of Frauds unless they meet certain exceptions. One such exception is if the goods are specially manufactured for the buyer and cannot be sold to others in the ordinary course of the seller's business, making the contract enforceable even if it's oral.

Question 6

Star Software Systems and Henry orally agree for Henry to write special accounting software.This software usually takes three years to complete,but can be done sooner.Does Henry have an enforceable legal agreement with Star?

Accepted Answer

The fact that the software usually takes three years to complete does not necessarily mean that it cannot be completed sooner. Therefore, the agreement between Star Software Systems and Henry is enforceable as long as the terms of the agreement are clear and both parties intend to be bound by it. A written agreement is not always necessary for a contract to be enforceable. As long as the terms of the agreement are clear and there is mutual assent, the agreement can be oral.

Question 7

In 2012,Alder Inc.(seller)and Dell,Inc.(buyer)signed a long-term sales contract that provided for cashier's check payments to be made by Dell on the first of each month.In 2015,Dell began using a wire transfer payment method,and now Alder asserts that Dell is in breach of contract.Which of the following is true?

Accepted Answer

The answer of In 2012,Alder Inc.(seller)and Dell,Inc.(buyer)signed a long-term sales...

Question 8

Vega appoints Ancel,a real estate broker,to negotiate the sale of her home.The ________ rule requires that this agreement be in writing and signed to be enforceable.

Accepted Answer

The equal dignities rule requires that any agreement authorizing an agent to enter into a contract for the sale of real estate must be in writing and signed by the principal in order to be enforceable.

Question 9

Which of the following is true of "click" fraud?

Accepted Answer

Click fraud is a problem in online advertising, where individuals or automated programs fraudulently click on ads to drive up costs for advertisers. One of the challenges in detecting and preventing click fraud is verifying the identity of the clicker, as it can be difficult to distinguish between legitimate clicks and fraudulent ones. Option A and D are incorrect because the click-on process can be used for both online contracts and online advertisements. Option B is incorrect because while clicks can indicate interest, they can also be manipulated through click fraud, making them an unreliable measure of genuine interest.

Question 10

Donna entered into an oral contract with Ava to purchase a house from Ava,with $500 per month payments for the next 10 years.Donna moved into the house,remodeled it,and did extensive repairs.At the end of 10 years,Ava refused to convey title to the house to Donna and produced evidence at the resulting trial that the fair market rental value for the house averaged $800 per month over the 10-year period.Does Donna have an enforceable contract?

Accepted Answer

Although there was no written contract, Donna can rely on equitable estoppel as a defense. She fully performed her part of the bargain by making all monthly payments and improving the property. It would be unjust for Ava to back out of their agreement after Donna relied on it for 10 years. The fact that the rent value was higher than Donna's monthly payment is not relevant in this case.

Question 11

Uncle Rodrick was deeply in debt when he died.His niece,Evangeline,became the administrator of his estate.She orally promised Rodrick's creditors that she would personally pay his debts if they would not publicize the fact that Rodrick died in debt.When Evangeline was unable to pay the debts,the creditors sued her.Will the creditors be legally able to collect from Evangeline?

Accepted Answer

Evangeline's promise to pay another's debt must be in writing to be enforceable under the Statute of Frauds. Since her promise was oral, it does not meet this requirement.

Question 12

An exception to the ________ rule states that if a written agreement depends on some event before it becomes enforceable,________ evidence may be offered regarding that ________.

Accepted Answer

The exception to the parol evidence rule allows for oral evidence to be presented if it pertains to a condition precedent that must occur before a written contract becomes enforceable. This acknowledges situations where the parties have agreed that some condition must be met before their agreement takes effect, and allows for oral evidence to prove the existence and terms of that condition.

Question 13

Under the ________ rule,the courts generally accept into evidence only the original of a writing,not a copy.

Accepted Answer

The best evidence rule requires that the original writing, document, or recording be introduced as evidence in court, rather than a copy, unless the original is lost or destroyed or unless it is shown to be unavailable for some other reason. This rule ensures the integrity and accuracy of the evidence presented in court.

Question 14

Sagan is borrowing money from Big Bank.His friend Leda,who works for Graille Systems,signs the loan agreement promising to pay the debt if Sagan does not.In this scenario,________ is the obligee,and ________ obligor.

Accepted Answer

Big Bank is the obligee because it is the entity to which the debt is owed. Sagan is the primary obligor because he is the original party obligated to repay the borrowed money.

Question 15

The Statute of Frauds: ________.

Accepted Answer

The Statute of Frauds, which is a law in many common law jurisdictions, including the United States, requires that certain types of contracts must be in writing to be enforceable in court. These include contracts for the sale of goods over a certain monetary value, contracts for the sale of real property, contracts that cannot be performed within one year, and contracts for the payment of debt. However, not all contracts have to be in writing, and some oral contracts can still be enforced if certain elements are present. Therefore, choices A, B, and D are incorrect.

Question 16

Willy and Brogan,aged 16,enter into a written contract in which Brogan will sell his horse to Willy for $250.Before the sale is finalized,Brogan seeks to be released from the contract and wants to offer in-court oral testimony concerning his age.The admission of Brogan's testimony is most likely governed by the ________ rule.

Accepted Answer

The parol evidence rule governs the admissibility of oral (parol) testimony or evidence that would contradict or modify the terms of a written contract. Since Brogan seeks to offer oral testimony about his age to affect the contract's enforceability, the parol evidence rule is most relevant.

Question 17

The Fair and Accurate Credit Transactions Act:

Accepted Answer

The Fair and Accurate Credit Transactions Act includes provisions to enhance consumer protection against identity theft, such as prohibiting merchants from printing more than the last five digits of a credit card number on receipts.

Question 18

Matrix,Inc.is the general contractor of a large commercial building project.Matrix subcontracted with Acme Flooring,Inc.to have flooring installed throughout the building.When Matrix failed to make payments to Acme as agreed,Acme stopped working.Commercial Bank,the lender for the project,orally promised Acme that Commercial would pay whatever Matrix failed to pay Acme if Acme would resume work.Acme finished the flooring,but was still not paid.Which of the following is true under the Statute of Frauds?

Accepted Answer

The primary objective test requires promises to pay the debt of another to be in writing and signed, but the main purpose test focuses on the primary purpose of the promise. In this case, Commercial Bank's promise to pay Acme was made to ensure completion of the project, which would enhance its mortgage interest. Therefore, the main purpose of the promise was not to pay the debt of another, but to benefit Commercial Bank. As a result, Commercial Bank is liable to Acme for payment.

Question 19

Celebrity Shelly Dunkle,wishing to spend a few undisturbed days by herself,checks into a resort hotel.She reserves a suite under the name of Barbi and stamps the initials B.I.into the hotel register.She also orders room service and signs all hotel bills with those same initials.Which of the following statements is true?

Accepted Answer

Shelly Dunkle is legally obligated to pay for the cost of the suite as well as for other bills that she signs using the initials B.I. The initials B.I. can still be considered a legal signature, and she cannot escape her contractual agreement with the hotel by using a pseudonym.

Question 20

Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo,so after signing the contract they orally agree to modify the contract to "1,000 cases of widgets." If later the parties are in litigation concerning the amount of widgets involved in the contract,can evidence of the oral change be introduced into evidence?

Accepted Answer

The parol evidence rule generally prohibits the introduction of extrinsic evidence (such as oral agreements) to vary or contradict the terms of a written contract. However, one exception to this rule is when the oral agreement is a subsequent modification to the written contract. As long as the oral agreement satisfies the requirements for a valid contract, it can be introduced into evidence to show that the parties agreed to modify the original written contract.

Quiz 11: Written Contracts and Cyber-Commerce