Question 1

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land.Since neither of them had any paper with them,Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street,St.Joseph,Minnesota,U.S.A.for the price of $4,500 per acre.Transfer of title,payment,and possession to take place on May 1,2008." Abyan signed the napkin.On May 1,2008,Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price.If Derek sues Abyan for the price of the land,the most likely result will be:

Accepted Answer

The writing on the napkin satisfies the requirements of the statute of frauds because it includes the parties, subject matter, price, and location of the land. Abyan's signature on the napkin also serves as evidence of the agreement. Therefore, Derek can sue Abyan for the purchase price of the land.

Question 2

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the:

Accepted Answer

The UCC allows for contracts for the sale of goods to be enforceable even if not all terms are in writing, as long as there is sufficient evidence of an agreement. The common law, on the other hand, requires all material terms to be in writing and signed by the parties in order to be enforceable. Signature alone is not enough for either UCC or common law. The indication of parties reaching an agreement is also required under both UCC and common law, but it is not the main difference between the two.

Question 3

On August 15th,Claude agrees to a consulting job for Irvin Plastics Co.for 10 months.The job is scheduled to begin on October 1st.Under the statute of frauds:

Accepted Answer

The statute of frauds requires written evidence for contracts that last for a term of more than one year. As Claude's consulting job is expected to last for 10 months, it falls short of the one-year rule. However, the contract is scheduled to begin on October 1st, meaning that it will extend into the second year. Therefore, the contract is required to be in writing to be enforceable.

Question 4

Abby dies,and her good friend,Claire is appointed to administer Abby's estate.Abby's house was in poor condition,so Claire orally hired a contractor to make repairs.Claire also orally promised that if the estate could not pay the repair bill,he would pay it even though he does not live in the house and has no entitlement under Abby's estate.The estate does not pay the repair bill.Who can the contractor collect from,if anyone?

Accepted Answer

The contractor can collect from the estate only because Claire's oral promise to pay the debt of another (the estate) is unenforceable under the Statute of Frauds, which requires such promises to be in writing.

Question 5

In the case Mayo v.North Carolina State University,the Court ruled that:

Accepted Answer

In Mayo v. North Carolina State University, the Court ruled that neither party could use the parole evidence rule to explain the terms of the agreement. This means that both Mayo and NCSU were limited to the terms and conditions explicitly stated in the written contract.

Question 6

Martin,Human Resources Director for Spring Co.,sent Lynn the following signed letter: "This letter confirms our offer to you.We will pay for your moving expenses,up to $1,500.Your starting date will be February 1,and you will become eligible for health care benefits as of May 1.You will receive a starting salary of $36,500 annually,with reviews and eligibility for increases at six months,12 months,and annually thereafter.Vacation will be for two weeks a year after one year." Spring fired Lynn eight months after she started to work,and Lynn sued arguing the letter constituted a memorandum of an oral contract for employment for five years.Is the letter sufficient to satisfy the statute of frauds?

Accepted Answer

The answer of Martin,Human Resources Director for Spring Co.,sent Lynn...

Question 7

Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way)promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?

Accepted Answer

Moneybag's promise to pay is a guarantee or "suretyship" agreement, which falls under the Statute of Frauds and must be in writing to be enforceable. Ethel's Exercise World's promise to buy the weight machines is a simple contract and does not require a written agreement to be enforceable.

Question 8

Ryan places a telephone order for a new bookshelf from Jones Furniture,Inc.The price of the bookshelf is $990.The clerk who takes the order sends Ryan a copy of the invoice.The next week,Ryan calls back and tries to cancel his order.

Accepted Answer

Ryan can cancel the order because the invoice alone is not a binding contract since he did not sign it, and there is no written agreement that he agreed to.

Question 9

Jennifer has been wanting to purchase Wayne's first edition of her favorite book for a few years.Wayne has been reluctant to sell it.One evening he said to Jennifer,"Okay,I'll sell the book for $750." Jennifer replied,"Great.I accept." The agreement was not reduced to writing,but Wayne and Jennifer did shake hands.Two days later,Jennifer sent Wayne a letter outlining the terms of the agreement,and stating that she would deliver $750 cash according to the agreement before the end of the week.The letter was signed,"Best regards,Jennifer." Later,Jennifer had second thoughts - $750 was quite an amount - and refused to go through with the purchase.Nothing had been exchanged at this point.What can Wayne do?

Accepted Answer

Although the original agreement was not reduced to writing and did not satisfy the statute of frauds, Jennifer's signed letter outlining the terms of the agreement satisfies the statute of frauds and serves as evidence of the agreement. Wayne can enforce the contract against Jennifer based on the signed letter.

Question 10

Vicki entered into a written contract to buy a car from Valley Motors.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is:

Accepted Answer

This is an integration clause, which is a provision in a contract that specifies that the written contract represents the entire agreement between the parties, and that any previous agreements or discussions are not considered part of the contract.

Question 11

Which of the following promises ordinarily must be in writing to be enforceable?

Accepted Answer

The answer of Which of the following promises ordinarily must...

Question 12

Scott is trying to introduce oral evidence in court to alter the terms of a written contract he had with Bonnie.Bonnie has raised the parole evidence rule as an objection to Scott's testimony.In which of the following circumstances will Scott not be able to introduce the oral evidence?

Accepted Answer

If the contract has an integration clause, it means that the parties intended the written contract to be the complete and final agreement between them. In such a scenario, parole evidence cannot be introduced to contradict, vary, or add to the terms of the contract. If Scott's point of contention is covered in detail in the contract, even if it's not to his favor, he cannot introduce oral evidence to alter the terms.

B, C, and D are exceptions to the parole evidence rule, allowing oral evidence to be introduced in court to alter the terms of a written contract.

Question 13

Vicki entered into a written contract to buy a car from Valley Motors.During the negotiations,the sales representative said that the car had a two-year full warranty.The written contract included a provision that stated,"This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty.Two months after Vicki took delivery of the car,she discovered that the transmission needed to be replaced.Vicki claimed that it was covered by the full warranty.Will Vicki be able to present evidence as to the sales representative's statements concerning the warranty?

Accepted Answer

The parole evidence rule prohibits the introduction of evidence of prior oral or written negotiations, agreements, or understandings that contradict, vary, or modify the terms of an integrated and final written contract. In this case, the written contract included a merger clause, stating that the written agreement was the full and final expression of the parties' intent. Therefore, Vicki will likely not be able to present evidence of the sales representative's statements concerning the warranty.

Question 14

When a contract falls within the statute of frauds but is not reduced to a writing,the contract is:

Accepted Answer

Contracts that fall within the statute of frauds (such as contracts for the sale of land or contracts that cannot be completed within one year) must be in writing to be enforceable. If the contract is not reduced to a writing, it is unenforceable, but not necessarily illegal or void.

Question 15

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant.Robert agreed to do so,but requested a written contract.Alfred assured him that the company attorney would prepare such a contract as soon as possible,but Alfred needed Robert to start at once.Accordingly,Robert sold his house,moved his family,and commenced to work for Alfred.He was fired without cause two months later.No written contract was ever executed.Can Robert enforce Alfred's oral promise?

Accepted Answer

Robert can argue that he relied on Alfred's oral promise and suffered a detriment by quitting his job and moving his family. This can be considered promissory estoppel and may allow Robert to enforce the promise even though it was not in writing.

Question 16

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

Accepted Answer

Totally integrated contracts cannot be contradicted or supplemented by evidence of prior agreements or expressions because they are deemed to represent the entire agreement between the parties. In contrast, incomplete contracts and ambiguous contracts may be explained or supplemented by evidence of prior agreements or expressions.

Question 17

Under the statute of frauds,which of the following statements about a contract for an interesting land is true?

Accepted Answer

Under the statute of frauds, a contract for the sale of land must be in writing and signed by the parties to be enforceable. This requirement applies regardless of the value of the land and whether or not there is a collateral involved. Therefore, option C is the only correct statement.

Question 18

Which of the following would suffice for a signature on a writing under the statute of frauds?

Accepted Answer

Judges define "signature" very broadly, which means that any form of signifying intent to be bound by the agreement can suffice as a signature under the statute of frauds. This can include a stamped signature, a retinal scan, or a name keyed at the bottom of an e-mail, as well as many other forms. Therefore, any of the options would suffice as a signature.

Question 19

Under the UCC,which of the following contracts may be enforceable,even without a written memorandum?

Accepted Answer

Under the UCC, contracts for the sale of goods over $500 must generally be in writing to be enforceable. However, there are exceptions to this requirement. One exception is if the seller is specially manufacturing the goods for the buyer. Another exception is if the seller has delivered the goods. Additionally, if the seller admits in court that there was a contract, that can also make the contract enforceable even if there is no written memorandum. Therefore, all of the choices listed (A, B, and C) are correct.

Question 20

Renita,a merchant,has received a signed,written confirmation from Merchants,Inc.referring to goods she had not ordered.Renita should:

Accepted Answer

Renita should object to the confirmation in writing within 10 days. By doing so, she can dispute the unsolicited goods and potentially avoid any legal obligation to pay for them. Ignoring the confirmation or waiting until after her vacation to object could potentially harm her case. While returning the goods with a note stating she will not pay for them may seem like a logical choice, it may not fully protect her from any legal action the seller may take. By objecting in writing within the specified time frame, Renita can better protect her rights as a buyer.

Quiz 14: Written Contracts