BLAW 3201 Chapter 15

True or false? Most courts consider a merger clause to be conclusive proof of an integrated contract.

True

True or false? Most types of contracts are valid without being written.

True

True or false? A contract to pay for lawn care services costing $1,500 would have to be in writing to be enforceable.

False

What would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2007, and that it is an integrated document.

A letter dated July 9, 2007, reciting agreement to new delivery terms

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

An oral statement such as this is not enforceable because this promise is within the statute of frauds.

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly.

Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affection interstate or foreign commerce is the:

Electronic Signatures in Global and National Commerce Act.

True or false? A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

False

True or false? ABC Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building. ABC promises Ace that it will pay for the materials if the subcontractor does not. ABC's promise is unenforceable unless in writing.

False

True or false? Although a contract to purchase an undeveloped low must be inwrapping to be enforceable, a contract to run power lines over someone else's lot need not be.

False

True or false? An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

False

True or false? Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get together and write a memorandum because it is a sale of goods for over $500.

False

True or false? In an employment agreement with Karl, Arnold promises to work for Karl for the rest of his life. This promise must be in writing to be enforceable.

False

True or false? In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

False

True or false? On March 20, Gordon orally agrees to work of Carrham, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.

False

True or false? The English statute of frauds and the Code's provision differ in language but have the same basic legal effect: an oral contract for certain identified situations is void.

False

True or false? The UCC requires that all contracts for the sale of goods must be in writing.

False

True or false? The UETA has been adopted by all of the states to give full effect to emergency transactions.

False

True or false? The parol evidence rule applies to partially written agreements.

False

True or false? The parol evidence rule is an exclusionary rule of evidence.

False

True or false? The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.

False

True or false? The statute of frauds generally requires that both parties sign the writing.

False

True or false? The statute of frauds has to do with fraud in the inducement of a contract.

False

True or false? The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing or proper electronic form.

False

True or false? The suretyship provision has been interpreted to include promises made to a debtor.

False

True or false? The test under the one-year provision of the statute of frauds is based on the likelihood that the contract will be completed within one year.

False

True or false? The word "parol" literally means release.

False

True or false? To satisfy the statute of frauds, the person who wants to bring the lawsuit must sign a memorandum.

False

True or false? Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

False

True or false? When a court interprets an ambiguous contract, usage of the trade will take precedence over express terms in the contract.

False

Which of the following promises in consideration of marriage would be outside the statute of frauds?

John and Joan mutually promise to marry each other in a formal ceremony on June 23.

What would NOT be subject to the writing requirements of Article 2 of the UCC?

Medical care received in a hospital

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?

No, because Barry does not have a writing signed by Champs Tee Shirts

What is untrue with regard to the interpretation of contracts?

Technical terms will always be given technical meaning even where a different intent is manifested by the parties.

What is another name for the main purpose doctrine?

The leading object rule

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement?

The quantity of the goods

What need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement?

The signature of the party suing

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year.

The term "year" in the contract is ambiguous, and the parties can bring in parol evidence to clarify their intent.

True or false? In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be inwrapping or have a sufficient electronic record.

True

True or false? A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

True

True or false? A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution.

True

True or false? A usage of trade is a practice or method of dealing, regularly observed and followed in a place, vocation, or trade.

True

True or false? Clara types a letter to David setting forth the terms of a contract between the two of them that falls within the statute of frauds. At the end of the letter, she types her name but does not sign her signature to it. If David wants to use the letter to satisfy the writing requirement, he may do so.

True

True or false? In interpreting a contract, terms which have been separately negotiated are given priority over standardized, pre-printed terms.

True

True or false? Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. This promise must be inwrapping to be enforceable.

True

True or false? The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement to be in writing.

True

True or false? The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not when the performance is to begin.

True

True or false? The executor-administrator provision applies to promises of an executor of a decedent's will to the decedent's creditors.

True

True or false? The main purpose doctrine is an exception developed by the courts to the suretyship provision.

True

True or false? The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

True

True or false? The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud, duress, or undue influence.

True

True or false? The parol evidence rule only applies to written contracts.

True

True or false? The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term "serrated."

True

True or false? The statute of frauds does not prevent the performance of oral contracts if the parties are willing to perform.

True

True or false? The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform the duty of another party to yet a third party.

True

True or false? The test under the one-year provision of the statute of frauds is whether the terms of the contract make it possible for performance to occur within one year.

True

True or false? Tom's bank is threatening to repossess his car. Tom's mother promises the bank to pay Tom's obligation if Tom defaults. This promise must be in writing (or have a sufficient electronic record) to be enforceable.

True

What would NOT require a writing under the statute of frauds?

Where a landscaper agrees to landscape the lot surrounding an office building.

On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Yes, because the job offer is for longer than one year from March 1

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor. b. A promise, the leading object of which is to obtain an economic benefit for oneself. c. A collateral promise where there are three parties and two contracts involved d. A promise by an executor to pay the debts of the decedent from the executor's own funds

b. A promise, the leading object of which is to obtain an economic benefit for oneself

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct? a. Wyandott can hold Chris to the order. b. Chris can hold Wyandott to the order. c. Neither party is bound, because there is no signed writing. d. Chris is bound if he makes no objection within 10 days.

b. Chris can hold Wyandott to the order.

Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of frauds? a. A typewritten name b. Handwritten initials c. A printed name d. All of the above meet the signature requirement.

d. All of the above meet the signature requirement.

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements b. Contemporaneous oral or written agreements c. Subsequent oral or written agreements modifying the original agreement d. Both (a) and (b).

c. Subsequent oral or written agreements modifying the original agreement

The parol evidence rule does not apply to: a. a typographical error that obviously does not represent the agreement of the parties. b. evidence showing one of the parties to the contract lacks contractual capacity. c. The parol evidence rule does not apply to either (a) or (b). d. The parol evidence rule applies to both (a) and (b).

c. The parol evidence rule does not apply to either (a) or (b).

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.

course of dealing

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection.

course of performance

In determining the meaning of a contract under the UCC, which of the following will have first priority? a. Course of performance b. Course of dealing c. Usage of trade d. Express terms

d. Express terms

Which of the following promises does NOT have to be evidenced by writing in order to be enforceable? a. Jones' agreement with Smith to sell his condominium for $100,000 b. Stewart's promise to work for Austin for a two-year period c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay d. Mindy's agreement with Susan to buy her bike for $400

d. Mindy's agreement with Susan to buy her bike for $400

Requirements for a memorandum that satisfies the statute for frauds include that the writing: a. must be a single document. b. must not contain an attachment. c. needs to be notarized. d. None of the above.

d. None of the above.

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable? a. Contracts to make wills. b. Contracts for the sale of securities. c. Contracts for the sale of personal property for more than $5,000. d. Contracts creating certain types of security interests. e. All of the above.

e. All of the above.

In states that have adopted it, the UETA:

encourages and gives full effect to electronic contracts.

E-Sign:

ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

E-Sign provides consumers must:

receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records.

Under the UCC, a(n) ____ is a practice or method of ealing, regularly observed and followed in a place or vocation or trade.

usage of trade