Question 1

Elle buys a new textbook for $100 and a used car for $5,000,and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month.The Statute of Frauds covers
A)the apartment lease,and the textbook and car purchases.
B)the apartment lease and the car purchase only.
C)the apartment lease only.
D)the textbook and car purchases only.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing, including leases longer than one year and sales of goods over $500. The apartment lease and car purchase fall under this statute.

Question 2

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts.Lyra tells Moe that her commission is 6 percent,but their signed,written contract states "12 percent." The Statute of Frauds governs
A)contracts that are induced by fraud.
B)contracts that must be in writing to be enforceable.
C)the admissibility in court of oral evidence.
D)the reformation of oral and written statements into one contract.

Accepted Answer

The Statute of Frauds requires certain types of contracts, including contracts for the sale of real estate, to be in writing to be enforceable. Therefore, if the contract for the sale of the apartment is not in writing, it would not be enforceable. Additionally, the fact that Lyra fraudulently misrepresented material facts and falsely stated her commission percentage may also impact the enforceability of the contract. However, the Statute of Frauds specifically applies to the requirement of a written contract, not fraud or misrepresentation.

Question 3

Glenn and Haji sign a written contract.Glenn claims that the parties later orally agreed to modify it.Any oral modification is likely not enforceable if it falls under
A)the doctrine of promissory estoppel.
B)the "main purpose" exception.
C)the "partial performance" exception.
D)the Statute of Frauds.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing to be enforceable, and modifications to those contracts also must be in writing. Therefore, any oral modification to a written contract may not be enforceable if it falls under the Statute of Frauds. The exceptions mentioned in options A, B, and C would not apply in this scenario.

Question 4

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store,and downloads $300 worth of digital music from E-Music.com.To be enforceable,the contract that must be in writing is the purchase of
A)the digital music,the MP3 player,and the speakers.
B)the MP3 player and the speakers only.
C)the MP3 player only.
D)the speakers only.

Accepted Answer

Under the Statute of Frauds, contracts for the sale of goods priced at $500 or more must be in writing to be enforceable. The speakers cost $600, so their purchase must be in writing. The MP3 player and digital music do not meet the $500 threshold individually.

Question 5

Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years.This contract is en?forceable by
A)Kirk.
B)Green.
C)any interested third party,such as a janitorial supplies provider.
D)none of the choices.

Accepted Answer

Under the Statute of Frauds, contracts that cannot be performed within one year must be in writing to be enforceable. Since this is a two-year contract and it is oral, it is not enforceable by either party.

Question 6

Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank.The agreement is not in writing.To be enforceable,the promise must be for the benefit of
A)any party.
B)Steve.
C)Thumb Grippers.
D)Main Street.

Accepted Answer

For the promise to be enforceable without being in writing, it must be for the benefit of the promisor, Steve, under the "main purpose" or "leading object" rule.

Question 7

Niche Credit,Inc.,is one of Cut-Rite Notching Corporation's two major creditors.Niche guarantees Cut-Rite's debt to the firm's other major creditor,Manufacturers Capital Bank,to forestall litigation.To be enforce?able,this guarantee
A)must be in writing.
B)need not be in writing if it benefits Niche Credit.
C)need not be in writing if it benefits Cut-Rite Notching.
D)need not be in writing if it benefits Manufacturers Capital Bank.

Accepted Answer

The answer of Niche Credit,Inc.,is one of Cut-Rite Notching Corporation's...

Question 8

Fact Pattern 15-A2 (Questions A17-A18 apply)
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity.The parties intend their written contract to be a final statement of the terms of their agreement.
-Refer to Fact Pattern 15-A2.The writing that Radford and Serenity signed is
A)a completely integrated contract.
B)a divisibly integrated contract.
C)a partially integrated contract.
D)a severably integrated contract.

Accepted Answer

The fact pattern states that the parties intend their written contract to be a final statement of the terms of their agreement, which makes it a completely integrated contract.

Question 9

Grandiloquent Properties,Inc.,and Investment Capital Corporation enter into a con?tract for a sale of land.To be enforceable,the contract must be in writing if the land is valued at
A)more than $500.
B)more than $5,000.
C)more than $50,000.
D)any price.

Accepted Answer

The Statute of Frauds requires that contracts for the sale of land be in writing to be enforceable, regardless of the price.

Question 10

Fact Pattern 15-A1 (Questions A13-A14 apply)
Macro Marketing,Inc.,and National Food Corporation (NFC)discuss the terms of a contract.Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed,including a two-year term.Macro begins to perform,but NFC refuses to pay.Macro files a suit to collect.NFC claims that there is no contract.
-Refer to Fact Pattern 15-A1.The transaction between Macro and NFC falls within the Statute of Frauds'
A)collateral-promise provision.
B)one-year rule.
C)sales-of-goods stipulation.
D)secondary-contracts section.

Accepted Answer

The one-year rule of the Statute of Frauds applies to contracts that cannot be performed within one year of the date of the contract. In this case, the contract agreed upon by Macro and NFC had a two-year term, which cannot be performed within one year. Therefore, the transaction falls within the Statute of Frauds.

Question 11

Natalie agrees to assume Orina's debt to Consumer Credit Corporation.Natalie does not get any personal benefit for the agreement.To be enforceable,the prom?ise must be in writing if the debt is for
A)more than $500.
B)more than $5,000.
C)more than $50,000.
D)any amount.

Accepted Answer

The promise to assume another's debt is considered a collateral promise and falls under the Statute of Frauds, which requires such promises to be in writing to be enforceable, regardless of the amount.

Question 12

Fact Pattern 15-A1 (Questions A13-A14 apply)
Macro Marketing,Inc.,and National Food Corporation (NFC)discuss the terms of a contract.Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed,including a two-year term.Macro begins to perform,but NFC refuses to pay.Macro files a suit to collect.NFC claims that there is no contract.
-Refer to Fact Pattern 15-A1.Between Macro and NFC,there is
A)an oral contract only.
B)a pre-contract only.
C)a written contract.
D)no contract.

Accepted Answer

The memo faxed by Macro on its letterhead that summarizes the items on which both parties agreed constitutes a written contract between Macro and NFC.

Question 13

Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400.Assuming the terms can be proved,the con?tract is enforceable by
A)the seller or the buyer.
B)the manufacturer of the laptop.
C)any third party who overheard the parties making the agreement.
D)none of the choices.

Accepted Answer

The enforceability of the contract is between the seller (Pablo) and the buyer (Melia) only, as they are the parties who formed the agreement. The manufacturer and any third party who overheard the agreement are not involved in the contract and therefore cannot enforce it.

Question 14

Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.The court could enforce such a contract if
A)Nori foreseeably and justifiably relied on Mica's promise to her detriment.
B)Mica denies the existence of any contract.
C)neither party has begun to perform.
D)the deal does not involve customized goods.

Accepted Answer

The doctrine of promissory estoppel may be applied when the Statute of Frauds renders an oral contract unenforceable. For promissory estoppel to apply, the party seeking enforcement must have reasonably and justifiably relied on the promise to their detriment, and the promise must be definite and certain in its material terms.

Question 15

Fact Pattern 15-A2 (Questions A17-A18 apply)
Radford and Serenity sign a written contract for the sale of Rad's Coffee & Bagels business to Serenity.The parties intend their written contract to be a final statement of the terms of their agreement.
-Refer to Fact Pattern 15-A2.Serenity later disputes some of the provisions in the deal with Radford.If the dispute results in litigation,a court will most likely exclude evidence that
A)buttresses the written terms.
B)contradicts the written terms.
C)duplicates the written terms.
D)reinforces the written terms.

Accepted Answer

If the parties intended their written contract to be a final statement of the terms of their agreement, a court will likely exclude evidence that contradicts the written terms. This is to prevent parties from later introducing evidence that changes the terms of the contract they had previously agreed upon.

Question 16

Ginamarie files a suit against Gaming Innovators Unlimited,Inc.,to enforce a written con?tract between the parties.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 orally before the contract but not contained in it.
C)terms discussed orally at the time of the contract that contradict the written terms.
D)nothing.

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 17

Shady Oaks Development,LLC,and Rural Acres,Inc.,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 consideration.
D)a description of the land.

Accepted Answer

A description of the land is typically required for a contract for the sale of real property to be enforceable in most states. A correct title, declaration of purpose, and statement of consideration may be helpful but are not typically required for enforceability.

Question 18

Timber Farms,Inc.,and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood.Under the Statute of Frauds,this contract is enforceable by
A)the seller.
B)the buyer.
C)any interested third party,such as the mortgagee or title company.
D)none of the choices.

Accepted Answer

According to the Statute of Frauds, contracts for the sale of real property must be in writing to be enforceable. An oral contract for the sale of a lumber mill and land is not enforceable. Therefore, neither party can enforce the contract, and neither can any interested third party.

Question 19

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins,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 evidencing an oral contract that would otherwise be unenforceable only needs to contain the essential terms of the contract, which are the basic terms that are necessary to identify the subject matter of the agreement and the parties involved. It does not need to contain every term or the preliminary or qualitative terms.

Question 20

Garden & Yard Landscaping and Penelope enter into an oral contract under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months.This con?tract is enforceable by
A)Garden & Yard.
B)Penelope.
C)any interested third party,such as Valley Country Club.
D)none of the choices.

Accepted Answer

An oral contract for a project that extends beyond one year is not enforceable under the Statute of Frauds.

Quiz 15: The Statute of Frauds

Elle buys a new textbook for $100 and a used car for $5,000,and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month.The Statute of Frauds covers

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts.Lyra tells Moe that her commission is 6 percent,but their signed,written contract states "12 percent." The Statute of Frauds governs

Glenn and Haji sign a written contract.Glenn claims that the parties later orally agreed to modify it.Any oral modification is likely not enforceable if it falls under

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store,and downloads $300 worth of digital music from E-Music.com.To be enforceable,the contract that must be in writing is the purchase of

Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years.This contract is en?forceable by

Steve agrees to assume a debt of Thumb Grippers Company to Main Street Bank.The agreement is not in writing.To be enforceable,the promise must be for the benefit of

Niche Credit,Inc.,is one of Cut-Rite Notching Corporation's two major creditors.Niche guarantees Cut-Rite's debt to the firm's other major creditor,Manufacturers Capital Bank,to forestall litigation.To be enforce?able,this guarantee

Grandiloquent Properties,Inc.,and Investment Capital Corporation enter into a con?tract for a sale of land.To be enforceable,the contract must be in writing if the land is valued at

Natalie agrees to assume Orina's debt to Consumer Credit Corporation.Natalie does not get any personal benefit for the agreement.To be enforceable,the prom?ise must be in writing if the debt is for

Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400.Assuming the terms can be proved,the con?tract is enforceable by

Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.The court could enforce such a contract if

Ginamarie files a suit against Gaming Innovators Unlimited,Inc.,to enforce a written con?tract between the parties.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

Shady Oaks Development,LLC,and Rural Acres,Inc.,sign a writ?ten contract for a sale of land.In some states,to be enforceable,this con?tract must include

Timber Farms,Inc.,and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood.Under the Statute of Frauds,this contract is enforceable by

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins,which they both sign.A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Garden & Yard Landscaping and Penelope enter into an oral contract under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months.This con?tract is enforceable by