Question 1

Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to
A) any extent because the order was placed orally.
B) no extent because the order was placed orally.
C) the extent of the ten accepted cartons.
D) the extent of the twenty ordered cartons.

Accepted Answer

Since Beta Grocers repudiated the contract after accepting ten cartons, Carotene can enforce the contract to the extent of the ten accepted cartons. This is based on the doctrine of substantial performance, which allows a party to recover at least some of the agreed-upon price if they have substantially performed their obligations under the contract. However, Carotene cannot enforce the contract to the extent of the twenty ordered cartons since Beta Grocers has repudiated the contract.

Question 2

Glen and Haj sign a written contract. Glen claims that the parties later orally agreed to modify the contract. 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

Oral modifications to a written contract are generally unenforceable if they fall under the Statute of Frauds, which requires certain contracts, such as those involving the sale of goods or interests in real property, to be in writing to be enforceable. Exceptions such as promissory estoppel, main purpose, or partial performance may apply in certain situations, but they are not likely to be applicable in this case based on the information provided.

Question 3

Fact Pattern 15-A2 
Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. 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 Jeff and Kris signed is
A) a completely integrated contract.
B) a conditionally integrated contract.
C) an agreeably integrated contract.
D) an obviously 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. This indicates that the contract is completely integrated, meaning that it represents the entirety of the agreement between the parties and supersedes any prior or contemporaneous agreements on the same subject matter.

Question 4

Fact Pattern 15-A1 
Macro Marketing, Inc., and National Food Corporation 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. NFC begins to perform, but Macro refuses to pay.
-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 faxed memo on Macro's letterhead summarizes the terms of the agreement reached between Macro and NFC. This memo can be considered a written contract as it contains the essential terms of the agreement and was sent by Macro to NFC.

Question 5

Fact Pattern 15-B1 
Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. 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 Pete will negotiate a final price.
-Refer to Fact Pattern 15-B1. Pete 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
A) ambiguous additional terms.
B) consistent additional terms.
C) contradictory additional terms.
D) fraudulent additional terms.

Accepted Answer

The fact pattern indicates that the contract is intended to be a final statement of most, but not all, of the terms of the agreement. Therefore, evidence of consistent additional terms may be admitted to clarify the parties' intent. However, evidence of contradictory or fraudulent additional terms would likely be excluded. Evidence of ambiguous additional terms may or may not be admitted, depending on the particular circumstances.

Question 6

Dina files a suit against Engineering Associates to enforce a written con?tract between the parties. Parol evidence will be admitted to prove
A) an orally agreed-on condition.
B) contemporaneous negotiations that contradict the written contract.
C) prior negotiations that contradict the terms of the written contract.
D) any of the above.

Accepted Answer

Parol evidence may be admitted to prove an orally agreed-on condition, as long as it does not contradict the terms of the written contract. However, parol evidence generally cannot be used to contradict the written terms of a contract, whether through contemporaneous negotiations or prior negotiations. Therefore, the best choice is A).

Question 7

Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule 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 parol evidence rule governs the admissibility in court of oral evidence. It prevents a party from presenting evidence of prior or contemporaneous oral agreements that contradict, modify or vary the terms of a fully integrated written contract. In this case, the parol evidence rule would apply to Ty's attempt to use evidence of Sid's oral misrepresentations and commission rate to alter or avoid the terms of their written contract for the sale of the warehouse.

Question 8

Nina and Owen enter into an oral contract for Nina's sale to Owen of a la?ser printer for $400. Before Owen takes posses?sion of the printer, the con?tract is enforceable by
A) either party.
B) Nina only.
C) neither party.
D) Owen only.

Accepted Answer

Since the contract is an oral agreement, it is enforceable by either party until possession of the printer is transferred to Owen. After possession is transferred, the contract is enforceable by both parties.

Question 9

Fine Services Company and Great Distributors, Inc., sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, this written contract must include
A) a correct title, such as "Service Contract."
B) all non-essential terms.
C) a statement of the consideration.
D) the parties' addresses.

Accepted Answer

A statement of consideration is required for any enforceable contract, regardless of whether it involves the sale of goods. A correct title or inclusion of parties' addresses are not necessary for the enforceability of a contract, and including all non-essential terms may not be practical or necessary.

Question 10

Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against
A) neither Theo nor Uma.
B) Theo and Uma.
C) Theo only.
D) Uma only.

Accepted Answer

The absence of signatures raises the issue of whether there was mutual assent to the agreement. However, if the essential terms of the agreement are present and the circumstances indicate that the parties intended to be bound by the agreement, then a court may find that a valid contract exists. In this case, the parties orally agreed on the sale of the Fitness Center and noted the terms on a sheet of the Center's stationery. The fact that they used the Center's letterhead implies that the agreement was made in the course of business dealings. Therefore, it is more likely that a court would find that a valid contract exists and that Theo is bound to the terms of the agreement. However, it may be difficult to enforce the agreement against Uma if she does not agree to the terms of the agreement.

Question 11

Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a con?tract. The only written evidence of the contract is a memo on DAI's let?terhead as signed by a DAI officer in its files. The con?tract can be en?forced if the memo includes
A) a correct title, such as "Chloe-DAI Contract."
B) all essential terms.
C) a statement of the consideration.
D) the parties' addresses.

Accepted Answer

All essential terms must be included in the written evidence for the contract to be enforceable. Therefore, option B is the correct choice. While options A, C, and D may be helpful, they are not necessary for the enforcement of the contract.

Question 12

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

The written memorandum must contain the essential terms of the oral contract in order to be enforceable. While including every term may be helpful, it is not necessary, and the preliminary and qualitative terms may not be essential to the agreement.

Question 13

E-Business, Inc. files a suit against Federated Financial Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in
A) all states.
B) no states.
C) one state.
D) some states.

Accepted Answer

The doctrine of promissory estoppel varies by state and is only recognized in some states.

Question 14

Mia orally promises Nick that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by
A) either party.
B) Mia only.
C) neither party.
D) Nick only.

Accepted Answer

The doctrine of promissory estoppel requires reliance on the promise. Since neither party has acted in reliance on the promise, the transaction is not enforceable by either party.

Question 15

Property Development Company and Quality Land Corporation 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 subject matter.
C) a statement of the consideration.
D) the parties' names.

Accepted Answer

The answer of Property Development Company and Quality Land Corporation...

Question 16

Fact Pattern 15-A1 
Macro Marketing, Inc., and National Food Corporation 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. NFC begins to perform, but Macro refuses to pay.
-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 fact that the contract concerned a two-year term indicates that it would not be fully performed within one year from the date of formation, making it subject to the Statute of Frauds' one-year rule.

Question 17

Fact Pattern 15-A2 
Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. The parties intend their written contract to be a final statement of the terms of their agreement.
-Refer to Fact Pattern 15-A2. Kris later disputes some of the provisions of the deal with Jeff. 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

The parol evidence rule states that when parties have reduced their agreement to a final writing, parol (oral or written) evidence of prior or contemporaneous negotiations and agreements is inadmissible if the evidence is offered to contradict, vary, or add to the written agreement. Therefore, if Kris disputes the provisions of the written contract, evidence that contradicts the written terms will be excluded by the court. Evidence that buttresses, duplicates, or reinforces the written terms will usually be admissible to clarify the meaning of ambiguous terms or to show that the written contract is incomplete or ambiguous.

Question 18

Eve files a suit against Financial Associates, Inc. (FA), to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if
A) Eve foreseeably, justifiably, and detrimentally relied on a promise by FA.
B) FA continues to deny the existence of a contract.
C) neither party has begun to perform.
D) the deal does not involve customized goods.

Accepted Answer

The doctrine of promissory estoppel allows the court to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds if one party has reasonably relied on the other party's promise to their detriment. In this case, if Eve can demonstrate that she relied on FA's promise, and her reliance was justifiable and resulting in harm, the court could enforce the otherwise unenforceable oral contract.

Question 19

Fact Pattern 15-B1 
Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. 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 Pete will negotiate a final price.
-Refer to Fact Pattern 15-B1. The writing that Odell and Pete signed is
A) a completely integrated contract.
B) a conditionally integrated contract.
C) a partially integrated contract.
D) a supplementally integrated contract.

Accepted Answer

The fact pattern specifies that the written contract is a final statement of most, but not all, of the terms of their agreement. This means that the contract is partially integrated, since there are additional terms that are not included in the written document.

Question 20

Consumer Goods, Inc., and Delta Distribution, Inc., sign a written con?tract for a sale of goods. To be enforceable, this written contract must include
A) a correct title, such as "Purchase Order" or "Sales Invoice."
B) a declaration of the subject matter.
C) a quantity term.
D) the parties' names.

Accepted Answer

A written contract for the sale of goods must include a quantity term to be enforceable under the Uniform Commercial Code (UCC).

Quiz 15: The Statute of Fraudswriting Requirements

Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to

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

Fact Pattern 15-A2 Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. 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 Jeff and Kris signed is

Dina files a suit against Engineering Associates to enforce a written con?tract between the parties. Parol evidence will be admitted to prove

Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs

Nina and Owen enter into an oral contract for Nina's sale to Owen of a la?ser printer for $400. Before Owen takes posses?sion of the printer, the con?tract is enforceable by

Fine Services Company and Great Distributors, Inc., sign a writ?ten con?tract that does not involve a sale of goods. To be enforceable, this written contract must include

Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against

Chloe files a suit against Digital Associates, Inc. (DAI) , to enforce a con?tract. The only written evidence of the contract is a memo on DAI's let?terhead as signed by a DAI officer in its files. The con?tract can be en?forced if the memo includes

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

E-Business, Inc. files a suit against Federated Financial Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in

Mia orally promises Nick that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

Property Development Company and Quality Land Corporation sign a writ?ten contract for a sale of land. In some states, to be enforceable, this con?tract must include

Eve files a suit against Financial Associates, Inc. (FA) , to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Consumer Goods, Inc., and Delta Distribution, Inc., sign a written con?tract for a sale of goods. To be enforceable, this written contract must include