Question 1

The Uniform Electronic Transactions Act reflects the decision that electronic transactions do not constitute a written copy because the electronic transaction is not technically a written document.

Accepted Answer

The Uniform Electronic Transactions Act (UETA) actually establishes the legal equivalence of electronic records and signatures with their paper counterparts, recognizing that electronic transactions do constitute a "writing" and are legally binding, thus not excluding them because they are not in a traditional paper format.

Question 2

Under the agent negotiation rule, if a contract falls within the statute of frauds if negotiated by a person, it must also be in writing even if negotiated by that person's agent.

Accepted Answer

False

Question 3

A promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable in some states.

Accepted Answer

Under the Statute of Frauds, which is a legal concept adopted in some form by all states in the United States, certain types of contracts must be in writing to be enforceable. This includes a promise to pay a debt that has been discharged in bankruptcy, as it is considered a new obligation separate from the original debt that was discharged.

Question 4

When a contract is incomplete, a court will not look at industry standards to complete the contract unless the parties had agreed to follow standard industry practice.

Accepted Answer

Courts can look at industry standards to fill in gaps in incomplete contracts, even if the parties did not explicitly agree to follow standard industry practice, as part of the effort to interpret the parties' intentions and ensure fairness.

Question 5

Contracts related to an interest in land are within the scope of the statute of frauds and are to be evidenced by a writing.

Accepted Answer

The Statute of Frauds requires certain types of contracts, including those related to an interest in land, to be in writing to be legally enforceable.

Question 6

Colin and Natalie orally agreed with Medical Center X for an in vitro fertilization procedure that would not result in the birth of an autistic child. They later signed a written contract stating that the medical center could not promise an absence of physical or mental defects and assumed no responsibility for such defects. The child conceived had autism. Which of the following is the most likely result of the parents' suit for breach of the oral agreement if the court follows the decision in Scalisi et al. v. New York University Medical Center discussed in the text?
A) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts conditioned on orally agreed upon terms.
B) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts that are not final as they are part written and part oral.
C) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts that are incomplete.
D) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving evidence of prior dealings or usage of trade.
E) The medical center will prevail based upon the written contract.

Accepted Answer

The medical center will likely prevail because the written contract explicitly states that the medical center cannot guarantee the absence of physical or mental defects and assumes no responsibility for such defects, overriding the prior oral agreement.

Question 7

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the error was indeed an error, as well as to set forth the proper term.

Accepted Answer

Parol evidence is admissible to correct or clarify typographical errors in a written contract to reflect the true intentions of the parties involved, even under the statute of frauds.

Question 8

In the U.S., the requirements for what falls within the statue of frauds is expanding, while in England almost all their requirements for a writing have been repealed.

Accepted Answer

In the U.S., the statute of frauds has been expanding to include more types of contracts that require written evidence, while in England, many of the traditional requirements for written contracts under the statute of frauds have been repealed, reducing the necessity for written agreements.

Question 9

Thea has a large farm and significant other assets. She agreed to loan her nephew Marcus $100,000 with payments of principle and interest to be made yearly. A few years later she and Marcus got into a dispute because Thea did not like his new girlfriend, Eileen. Soon thereafter Marcus got notice that Thea was suing him for not paying interest on the note. Marcus defended on the basis that two years after the initial loan agreement was entered into, he and Thea entered into an oral agreement that he would perform services on her farm in lieu of paying interest on the note. If the court follows the reasoning of the court in the Case Opener involving Monroe Bradstad and Jeanne Garland, which of the following is the most likely result of the dispute between Thea and Marcus involving whether he owes past interest amounts?
A) Marcus will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing.
B) Marcus will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement.
C) Assuming the court credits Marcus' account of events, Marcus will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement.
D) Assuming the court credits Marcus' account of events, Marcus will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement.
E) Assuming the court credits Marcus' account of events, based on the parol evidence rule, Marcus will be required to pay only 1/2 of the interest amounts.

Accepted Answer

Assuming the court believes Marcus' version of events, the oral agreement to perform services in lieu of paying interest can be seen as a separate, enforceable agreement, not barred by the original written loan agreement or the parol evidence rule, similar to the reasoning in the Case Opener involving Monroe Bradstad and Jeanne Garland.

Question 10

The concept of performance has no effect on the statute of frauds.

Accepted Answer

The concept of performance can affect the applicability of the statute of frauds, as certain performances (such as the delivery of goods or payment) may fulfill the requirements of the statute, thereby negating the need for a written contract for the agreement to be enforceable.

Question 11

Oral modifications are inadmissible and unenforceable if a contract's terms require that modification be in writing.

Accepted Answer

If a contract explicitly states that modifications must be in writing, oral modifications are generally considered inadmissible and unenforceable because they do not comply with the agreed-upon terms.

Question 12

The purpose of the parol evidence rule is to allow oral evidence to prove agreements.

Accepted Answer

The parol evidence rule is a legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary the contractual terms of the written contract.

Question 13

"Statute of Frauds" is a title in the United States Code of Laws.

Accepted Answer

The "Statute of Frauds" is not a title in the United States Code of Laws but a concept originating from English law, requiring certain contracts to be in writing to be enforceable.

Question 14

What did the appellate court rule in the case in the text, Power Entertainment, Inc., et. al. v. National Football League Properties, Inc., involving the enforceability of an alleged oral agreement by which the plaintiff assumed a third party's debt owed to the defendant in return for the defendant transferring a licensing agreement to the plaintiff?
A) That the plaintiff was barred from recovery by the suretyship provision of the statute of frauds.
B) That the plaintiff could recover because the original agreement between the third party and the defendant was in writing.
C) That the oral agreement fell outside the statute of frauds if the plaintiff satisfied the main purpose doctrine.
D) That the oral agreement fell outside the statute of frauds if the plaintiff satisfied the parol evidence rule.
E) That the plaintiff could recover as a matter of law because the statute of frauds does not apply to suretyship agreements.

Accepted Answer

The answer of What did the appellate court rule in...

Question 15

All parties to a contract must sign the writing in order for the statute of frauds to be satisfied.

Accepted Answer

The statute of frauds requires only the party against whom enforcement is sought to have signed the document, not all parties.

Question 16

An oral contract for customized goods is enforceable.

Accepted Answer

An oral contract for customized goods can be enforceable if it meets the general requirements for contract formation (offer, acceptance, consideration) and if it can be proven by the parties involved. However, enforceability may vary depending on the jurisdiction and specific circumstances, including the Statute of Frauds which requires certain contracts to be in writing.

Question 17

Which of the following was the result in the Case Nugget in the text involving the dispute between Dr. Ralph M. Aurigemma and New Castle Care, LLC, involving whether an oral agreement entered into on September 4 involving Dr. Aurigemma serving as medical director from October 1 of that year until October 1 of the next year was enforceable?
A) That the contract was enforceable because agreements for professional services do not come within the protection of the statute of frauds.
B) That the contract was enforceable because of the partial-performance exception to the statute of frauds.
C) That the contract was not in writing and, therefore, could not be enforced.
D) That the contract could not be enforced because of the parol evidence rule.
E) That the contract could be enforced because of the parol evidence rule.

Accepted Answer

The contract was not in writing and, therefore, could not be enforced due to the statute of frauds, which requires certain contracts to be in writing to be enforceable.

Question 18

Merger clauses are considered by all courts to be conclusive proof of a contract.

Accepted Answer

Merger clauses, also known as integration clauses, indicate that the written contract is the complete and final agreement between the parties. However, they are not always considered conclusive proof by courts, as extrinsic evidence may still be considered to interpret the contract or to identify fraud, mistake, or other reasons that could challenge the contract's validity or interpretation.

Question 19

Parol evidence is admissible when a court deems a contract integrated.

Accepted Answer

Parol evidence is generally not admissible to alter, contradict, or add to the terms of an integrated (fully and finally written) contract, except for certain exceptions such as clarifying ambiguities, proving fraud, or showing that the contract was not meant to be a complete agreement.

Question 20

Which of the following is false regarding written contracts?
A) Disputes are easier to settle when contractual terms are solidified in writing.
B) The moment of writing allows both parties to reconsider terms and ensure what they desire.
C) In general, written contracts aid in the conduct of smooth business contracts.
D) The idea of requiring a writing comes from an English law.
E) All contracts must be in writing in order to be enforced.

Accepted Answer

The statement that all contracts must be in writing in order to be enforced is false. While many types of contracts do require written documentation to be legally binding, such as real estate transactions or contracts that cannot be performed within one year, there are exceptions. Oral contracts can also be enforceable, depending on the jurisdiction and the specific circumstances surrounding the agreement.

Quiz 18: Contracts in Writing