Question 1

The statute of frauds addresses the problem of contractual fraud in the inducement.

Accepted Answer

The statute of frauds requires certain types of contracts to be in writing in order to be enforceable, but it does not address contractual fraud in the inducement specifically. Fraud in the inducement may still occur in contracts that meet the requirements of the statute of frauds.

Question 2

Usage of trade is a pattern of behavior between parties showing how they intend their relationship to work.

Accepted Answer

False

Question 3

The UCC provides that an oral contract for goods in excess of $350 will be upheld if payment has already been made and accepted.

Accepted Answer

The UCC requires that contracts for the sale of goods over $500 be in writing. There is an exception for contracts for goods between $500 and $1,000 that allows them to be enforceable if there has been partial performance, but not for contracts under $500. Additionally, the threshold for written contracts was increased from $500 to $2,500 in 2020. Therefore, an oral contract for goods in excess of $350 would not be upheld based solely on payment having already been made and accepted.

Question 4

A contract to have a house painted for $10,000 would need to be evidenced by a writing to be enforceable.

Accepted Answer

A contract for services, such as painting a house, does not typically need to be in writing to be enforceable unless it falls under specific circumstances like the Statute of Frauds, which generally applies to contracts that cannot be performed within one year or involve the sale of goods over a certain amount.

Question 5

The statute of frauds is irrelevant if the parties to the agreement are willing to perform.

Accepted Answer

The statute of frauds is a law that requires certain types of contracts to be in writing to be enforceable. However, if the parties to the agreement are willing to perform the contract, then the statute of frauds is irrelevant. This is because the statute of frauds is only a requirement for enforceability, not for validity.

Question 6

The Statute of Frauds is a legislative intrusion into the common law of contracts.

Accepted Answer

The Statute of Frauds is a law that requires certain types of contracts to be in writing in order to be enforceable, and therefore it imposes a limitation on the common law principle that contracts can be formed orally. As such, it is a statutory addition to the common law tradition of contract law.

Question 7

Movie Star said to Carla, age 26, "The kids really love you as their nanny. I hope you will stay with us for a long time; I offer you lifetime employment." Twenty years later Movie Star wished to let Carla go. The statute of frauds would preclude her from attempting to prove the lifetime-employment offer.

Accepted Answer

The statute of frauds requires certain types of contracts to be in writing, such as contracts that cannot be performed within one year. However, the lifetime-employment offer made by Movie Star to Carla is a type of contract that can be performed within one year, so it does not fall within the statute of frauds. Therefore, Carla could attempt to prove the offer of lifetime employment in court.

Question 8

The statute of frauds requires that the parties have a signed, written contract.

Accepted Answer

The answer of The statute of frauds requires that the...

Question 9

At John's oral request, Juanita printed up 5000 brochures for John's business, costing $800. Because Juanita used normal printing methods, these are not "specially manufactured goods" to qualify for an exception to Article 2's statute of frauds.

Accepted Answer

The answer of At John's oral request, Juanita printed up...

Question 10

Integrated contract is a customary way of doing business that may be used to inform parties' contractual intentions.

Accepted Answer

An integrated contract is a complete and final representation of the parties' agreement, and typically excludes any prior or contemporaneous agreements or understandings not included in the written document. Customary practices may inform interpretation but do not alter the terms of an integrated contract.

Question 11

In Wilson Floors Co. v. Scotia Park, Ltd., and Unit, Inc., the court made a judgment based on the fact that the bank had no contractual duty to Wilson despite its oral guarantee according to the Statute of Frauds.

Accepted Answer

The answer of In Wilson Floors Co. v. Scotia Park,...

Question 12

If an oral agreement is made to be performed within one year and if there is even a slight chance of carrying out the agreement completely within one year, the oral agreement would be enforceable.

Accepted Answer

According to the statute of frauds, an oral agreement can be enforceable if it can be performed within one year, regardless of whether or not it is actually completed within that timeframe.

Question 13

If Sally admits she made an oral agreement to buy a computer costing $1300, the agreement is nevertheless unenforceable under the statute of frauds.

Accepted Answer

The answer of If Sally admits she made an oral...

Question 14

Course of dealing is a systematic and uniform conduct in which parties engage after they enter into a contract.

Accepted Answer

Course of dealing refers to the conduct between parties prior to entering into a contract, which can help interpret terms or fill gaps in the contract.

Question 15

Regarding a common-law agreement affected by the statute of frauds, John said, "I admit I made an oral agreement, but there is nothing in writing and I don't want to go through with it." The agreement is enforceable against John.

Accepted Answer

The statute of frauds requires certain contracts, including common-law agreements, to be in writing to be enforceable. John's admission that the agreement was only oral and that he does not want to go through with it means that the agreement is not enforceable against him.

Question 16

A clause that is separately negotiated and added to a contract will be counted as more significant than a standard term in a form contract.

Accepted Answer

This statement is true. When a clause is separately negotiated and added to a contract, it is considered more significant because it reflects the specific intentions of the parties involved, rather than just being a standard term in a form contract. Courts will often give greater weight to negotiated terms in the event of a dispute.

Question 17

According to the part performance doctrine, acts taken in reliance are not necessary partial performances.

Accepted Answer

According to the part performance doctrine, acts taken in reliance can include partial performances, but they are not necessary for reliance to be established.

Question 18

A collateral promise is one in which the promisor agrees to be primarily liable for the principal debtor's obligation.

Accepted Answer

A collateral promise involves a promisor agreeing to be secondarily liable, meaning they will fulfill the obligation only if the principal debtor fails to do so.

Question 19

Most oral contracts are enforceable.

Accepted Answer

Oral contracts are generally enforceable, but they can be difficult to prove in court if there is a dispute. It's recommended to always have written contracts to ensure clarity and avoid misunderstandings.

Question 20

The parol evidence rule does not prevent a showing that a fact stated in a contract is untrue.

Accepted Answer

The parol evidence rule prohibits the introduction of extrinsic evidence to vary or contradict the terms of a fully integrated written contract. However, it does not prevent a party from showing that a fact stated in the contract is untrue. In other words, if a party can prove that a factual representation made in the contract was false, they can still challenge the validity of the contract despite the parol evidence rule.

Quiz 13: Form and Meaning