Question 1

Odell and Paula sign a contract for the sale of Odell's Pub & Grub Café to Paula. The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Odell must first buy the building from Quin,after which Odell and Paula will negotiate a final price.
-Refer to Fact Pattern 15-3. Paula later disputes some of the provisions of the deal with Odell. If the dispute results in litigation,a court will most likely admit evidence of additional terms that are
A)ambiguous.
B)consistent.
C)contradictory.
D)clear.

Accepted Answer

If the written contract is intended to be a final statement of most, but not all, of the terms of the agreement, evidence of additional terms that are consistent with the written contract may be admitted in court to clarify any ambiguities or gaps in the written contract. Evidence of contradictory terms or clear terms that were intentionally left out of the written contract would not be admissible.

Question 2

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks,Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against
A)no one.
B)Lucas and Natural Soft Drinks.
C)Lucas.
D)Natural Soft Drinks.

Accepted Answer

Lucas is the only party who has signed the agreement, so it is enforceable against him. However, since Natural Soft Drinks has not signed the agreement, it is not bound by its terms. The stationery used does not make a difference in the enforceability of the agreement.

Question 3

Odell and Paula sign a contract for the sale of Odell's Pub & Grub Café to Paula. The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Odell must first buy the building from Quin,after which Odell and Paula will negotiate a final price.
-Refer to Fact Pattern 15-3. The writing that Odell and Paula signed is a contract that is
A)completely integrated.
B)conditionally integrated.
C)partially integrated.
D)separably integrated.

Accepted Answer

The fact pattern states that the parties intend the written contract to be a final statement of most, but not all, of the terms of their agreement, meaning that the contract is only partially integrated.

Question 4

Don and Etta orally agree on the sale of Don's Electrical Supplies Company to Etta and jot down the terms on the back of one of Don's blank invoices,which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
A)every term.
B)the essential terms.
C)the preliminary terms.
D)the qualitative terms.

Accepted Answer

A written memorandum must contain the essential terms of the agreement, such as the parties' identities, the subject matter, and the purchase price. It does not need to include every single term or preliminary or qualitative terms.

Question 5

Ranchland Properties and Prairie State Investments sign a writ-ten contract for a sale of land. In some states,to be enforceable,this con-tract must include
A)a correct title,such as "Land Transfer" or "Real Estate Agreement."
B)a declaration of the contract's purpose.
C)a statement of the source of financing.
D)a description of the land.

Accepted Answer

In order to be enforceable, a contract for the sale of land must include a description of the land being sold. This is typically done through the use of legal descriptions, such as metes and bounds or a parcel number. While it may be common to include a statement of purpose or financing sources, these are not required for enforceability. A correct title may be helpful for organization and clarity, but it is also not necessary for enforceability.

Question 6

Kelly and Lauren sign a written contract for the sale of Kelly's Koffee Kiosk to Lauren. The parties intend their written contract to be a final statement of the terms of their agreement.
-Refer to Fact Pattern 15-2.Lauren later disputes some of the provisions of the deal with Kelly. If the dispute results in litigation,a court will most likely exclude evidence that
A)supports the written terms.
B)contradicts the written terms.
C)duplicates the written terms.
D)reinforces the written terms.

Accepted Answer

The parol evidence rule states that evidence that contradicts the terms of a written contract is generally not admissible in court. Therefore, if Lauren disputes some of the provisions of the deal with Kelly, and the dispute results in litigation, a court will most likely exclude evidence that contradicts the written terms.

Question 7

Stylish Corporation and Trends,Inc.,enter into a contract. The terms are put in writing. To be enforceable as a contract,the writing must include
A)no particular signatures.
B)the signatures of all parties to the deal.
C)the signature of the party against whom enforcement is sought.
D)the signature of the party who is seeking enforcement.

Accepted Answer

The Statute of Frauds requires that a contract be signed by the party against whom enforcement is sought to be enforceable.

Question 8

Kelly and Lauren sign a written contract for the sale of Kelly's Koffee Kiosk to Lauren. The parties intend their written contract to be a final statement of the terms of their agreement.
-Refer to Fact Pattern 15-2. The writing that Kelly and Lauren signed is a contract that is
A)agreeably integrated.
B)conditionally integrated.
C)entirely integrated.
D)partially integrated.

Accepted Answer

The answer of Kelly and Lauren sign a written contract...

Question 9

Ulrich files a suit against Vern to enforce a written con-tract. If the court finds that the parties intended the contract to be the final statement of their agreement,parol evidence can be admitted to prove
A)an orally agreed-on condition precedent.
B)terms discussed before the contract but not contained in it.
C)terms discussed at the time of the contract that contradict the written terms.
D)none of the choices.

Accepted Answer

Parol evidence can be admitted to prove an orally agreed-on condition precedent, which is an event that must occur before a party is obligated to perform under a contract.

Question 10

Waterfront Hotels Corporation in Boston offers a job to Carol,who lives in Denver. Carol orally agrees to work for Waterfront for two years. She moves her family to Boston and begins work. Three months later,she is fired for no stated cause. She files a suit against the employer for rein-statement or pay. Waterfront pleads the lack of a written con-tract. In whose favor is the court likely to rule,and why?

Accepted Answer

The answer of Waterfront Hotels Corporation in Boston offers a...

Question 11

Macro Marketing,Inc.,and Nature Foods Corporation (NFC)discuss the terms of a contract. Macro faxes NFC a memo on Macro's letterhead that summarizes the items on which they agree. NFC begins to perform,but Macro refuses to pay. Between Macro and NFC,the memo is
A)an oral contract.
B)a pre-contract.
C)awritten contract.
D)no contract.

Accepted Answer

The memo summarizing the terms is on Macro's letterhead, indicating that it was in writing and creates a written contract between the two parties.

Question 12

In a transaction for the sale of a warehouse,Standard Storage Company tells TriCounty Investment Corporation that the office furniture is included. The contract says nothing about office furniture,but does state,"This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Accepted Answer

The answer of In a transaction for the sale of...

Quiz 15: The Statute of Fraudswriting Requirement

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks,Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Don and Etta orally agree on the sale of Don's Electrical Supplies Company to Etta and jot down the terms on the back of one of Don's blank invoices,which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Ranchland Properties and Prairie State Investments sign a writ-ten contract for a sale of land. In some states,to be enforceable,this con-tract must include

Stylish Corporation and Trends,Inc.,enter into a contract. The terms are put in writing. To be enforceable as a contract,the writing must include

Kelly and Lauren sign a written contract for the sale of Kelly's Koffee Kiosk to Lauren. The parties intend their written contract to be a final statement of the terms of their agreement. -Refer to Fact Pattern 15-2. The writing that Kelly and Lauren signed is a contract that is

Ulrich files a suit against Vern to enforce a written con-tract. If the court finds that the parties intended the contract to be the final statement of their agreement,parol evidence can be admitted to prove

Macro Marketing,Inc.,and Nature Foods Corporation (NFC) discuss the terms of a contract. Macro faxes NFC a memo on Macro's letterhead that summarizes the items on which they agree. NFC begins to perform,but Macro refuses to pay. Between Macro and NFC,the memo is