Bus Law Ch 16- Statute of Frauds, Practice Exam 2 Notes

Life estates are not inheritable.

True

While intoxicated, Jill agrees to sell his car for half of its value. The contract is

enforceable only if Jill understood its legal consequences

If the offeree dies before the offer has been accepted, the offer

is automatically revoked by the death of the offeree

Jason borrows $2,000 from Suntrust Bank. Jeanine orally promises the bank that she will repay the debt if Jason does not. This promise is enforceable by:

neither Jason nor Suntrust Bank

The elements of a contract include all of the following except

Illegal purpose

Jeff, Kevin and Lance store their corn in three silos. Jeff contributes half of the corn, Kevin a third and Lance a sixth. A tornado hits two of the silos and scatters the corn. The corn left in the remaining silo most likely

Jeff owns half, Kevin a third and Lance a sixth

Statute of Fraud Exceptions- Partial Performance

-Buyer pays part of price, takes possession, or makes improvements. -Brad orders 50 multi-colored umbrellas to use at his beach restaurant. After Brad accepts the first 25, he denies the existence of the contract. The seller can enforce. -Sutton v. Warner, 12 Cal. App.4th 415, 15 Cal. Rptr.2d 632 (1993).

Exceptions to the Parol Evidence Rule

-Contracts subsequently modified -Voidable or void contracts -Contracts containing ambiguous terms -Incomplete contracts -Prior dealing, course of performance, or usage of trade -Contracts subject to orally agreed-on conditions precedent -Contracts with an obvious or gross clerical error

Sufficiency of the Writing - Material Terms

-Names of parties -Price -Subject matter - sufficient description -Quantity (UCC)

Sufficiency of the Writing - Signatures/Signed by Defendant

-Printed, stamped, typewritten or any other means that is intended to identify that party -The contract must be signed by the party against whom enforcement is sought. The signature of the person who seeks to enforce the contract is not required.

Statute of Fraud Exceptions- Promissory Estoppel

-Promise/Detriment/Reliance/Enforce to avoid injustice -Manager orally promises employee 10% raise if she does not take the job offered by competitor. Employee declines competitor's job offer, but employer states no contract exists. Employee can assert detrimental reliance.

Title VII applies to employers involved with interstate commerce with ___ or more employees,

15

Which option is not a possessory interest in land?

Easement

Which of the following is NOT one of the four ways agencies may be created?

Estoppel Ratification Operation of Law Express

BroadBand Company agrees to sell software to Ally from BroadBand's website. To complete the deal, Ally clicks on a button that with references to certain terms, states, "I agree." The parties have

A binding contract that includes the terms

One Year Rule

A contract that cannot, by its own terms, be performed within one year from the date it was formed. One-year period begins to run the day after the contract is made. Test: Is performance is possible (although unlikely) within one year?

Executory Contract

A contract under which one or both parties have not yet fully performed is termed a(n) Entered into but not fully performed

Chemico and Jim entered into an illegal agreement whereby Jim agreed to wrongfully acquire and copy a competitor's new chemical formula in consideration for $5,000. Performance of the agreement would be a crime. If Chemico paid the $5,000 to Jim, but Jim does not perform:

A court would not require Jim to perform the agreement.

Secondary Contract

A secondary contract must be in writing to be enforceable when a third party agrees to pay IF the original party does not pay. Example: Mom signs the contract to pay for gymnastics. Dad tells the gymnastics coach that he will pay for his daughter's lessons if her mother (Dad's ex wife), does not pay.

Which one of the following is NOT an element of disparate treatment discrimination?

A test adversely affects a protected group.

Which one of the following is not a correct statement concerning disaffirmance of a contract by a minor?

Adults can void contracts if they find out the other party is a minor

Written Contract

Agreement in writing that serves as its own proof that a promise was made. Some contracts must be evidenced by a signed written agreement in order to be enforced.

Oral Contract

Agreement that has been spoken but not written down. Oral communications, including telephone conversations and dinner or breakfast discussions, may be deemed legally enforceable unless a statute requiring a writing exists. Verbal agreements use words; therefore, oral and written agreements could be considered verbal contracts. When talking about spoken contracts that are not in writing, refer to them as oral contracts.

Exception--"Main Purpose Rule"

An oral contract is enforceable if main purpose is benefit to guarantor. Example: Jason is the sole owner of Happy Trails Bike Sales Corporation. The corporation borrowed $50,000 from Suntrust Bank and Jason orally guarantees to repay the loan if the corporation fails to pay it. Suntrust can enforce the oral guaranty against Jason because the main purpose of the loan benefited him as the owner of the company.

Which form of gambling is considered legal in Florida?

BINGO!!! :)

Allison said to Barb, "I'll give you $100 for that bracelet." Barb replied, "$135." Allison said, No thanks." Barb then said that she accepted the $100, but Allison was no longer interested and said there was no contract. Barb insisted that there is a contract. Result?

Barb's counter offer of $135 terminated Allison's offer of $100

A contract must have

Both an offer and an acceptance

Adam and Brett own Blackacre as joint tenants. Adam is married to Mabel. When Adam dies, who owns Blackacre?

Brett

Which one of the following is NOT a defense an employer can use related to employment discrimination?

Business Necessity Bona Fide Occupational Qualification Bona Fide Seniority System Correct! All answers are allowable defense

A mass layoff for an employer with at least 100 employees includes all of the following except:

Closing a plant employing less than 50 full time employees

What is NOT an element of a gift?

Consideration

The main idea behind the quasi contrast is to

Correct! Prevent unjust enrichment

Statute of Fraud Exceptions- Special Exceptions under the UCC

Customized goods and Oral contracts when seller accepts payment and buyer accepts goods.

Generally, courts do not review adequacy of consideration; however, they may review in cases that indicate

Duress, Incapacity, and Fraud (all of the above)

Susan threw away an old chair that had been in the family for years by placing it on the curb next to the rest of the trash. Eddie came by and began to admire the chair. Although the chair was heavy, Eddie picked it up and called to a friend that he had just found an antique chair. When Susan heard this, she demanded the return of the chair. The chair belongs to

Eddie because Susan abandoned it and Eddie took possession of it.

Delivery persons and plumbers are examples of people who have an easement to your property.

False

Sufficiency of the Writing - Additionally

Faxes are acceptable, e-signatures can be enforceable under E-sign and UETA.

Jack offered to pay Greg $500 in consideration for Greg's complete trimming of all trees located on Jacks property. This offer is an offer for a unilateral contract. Under these facts

Greg can accept the offer by completely trimming the trees.

Greg found a "lost" diamond ring in the wall safe in his hotel room(a public place). Which answer best describes Greg's rights to the bracelet?

Greg must turn the ring over to the hotel for safekeeping for the ring's true owner.

"i will paint your house if i have time"

Illusory Promise

Mortgages & Leases

Jessie purchases a house for $300,000. He pays $60,000 as a down payment and borrows $240,000 from Home Banc. Home Banc requires the house to be collateral for the loan and takes out the mortgage. The mortgage between Jessie and Home Banc must be in writing to be enforceable. Jessie negotiates a 2-year lease on a new BMW to go with his new house. Most Statutes of Frauds enacted by states require leases for a term of more than one year to be in writing.

Interests in Land

Land includes all physical objects that are permanently attached to the soil: buildings, fences, trees, and the soil itself. Includes all contracts for the transfer of other interest in land such as mortgages and leases. Must be in writing signed by party against whom enforcement is sought.

Bill conveys Blackacre to Bob as long as he uses the property for a hospital. If the property stops being used for a hospital or medical facility, it reverts back to Bill or Bill's heirs. This is an example of a

Life Estate

Property that is voluntarily placed somewhere and inadvertently forgotten.

Mislaid

Quinn rented a power washer from Ace Hardware for $50 per day. This bailment is a

Mutual Benefit Bailment

Which agreement is sufficiently supported by consideration to be a contract?

Nick agreed to pay $400 to Greg in exchange for Greg's promise to transfer title to his car to Nick's son.

Nicky wants to give her GoPro camera located in her storage unit to Anton. Nicky gives Anton the key to the storage unit and tells him to take the camera. Anton says he does not want the camera and leaves the key on Nicky's desk. The next day, Nicky dies. The GoPro camera belongs to

Nicky's Heirs

A customer walked into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and the price was $229. In this case:

No contract was formed because the customer's offer was refused.

What example consists of consideration?

None of the examples (Promising and then refusing to pay a bonus, a police officer offering to do more rounds, starting a service job and then demanding more payment halfway through it)

Brent parked his car in a public garage and walked away, keeping the keys to the car. Sally gave her keys to a parking valet, who parked Sally's car and kept the keys until she returned. Under these facts, which party most likely created a bailment?

Only Sally

Statute of Fraud Exceptions- Admissions

Party admits a contract was made.

prenuptial agreement

Prenuptial agreements must be in writing. Example: Nicole Kidman and Keith Urban - If they split, Keith gets approximately $600,000 a year for every year they were married unless he uses illegal drugs or boozes excessively.

Purpose for Requirements

Prevents fraud, provides evidence, and prevents perjury from fuzzy memory

Primary Contract

Primary contracts are not required to be in writing unless required by the Statute of Frauds. A primary contract does not need to be in writing if a third party assumes the primary payment responsibility. Example: Dad tells the gymnastics coach that he will pay for his daughter's lessons. Dad is a party to the primary contract.

The purpose of the statute of frauds is to

Provide evidence, prevent perjury from fuzzy memory, and prevent fraud (all correct)

Collateral Promises

Secondary promise made to a third party to assume the debts and obligations of the primary debtor.

Leo offers to sell Mona a video game player. Mona sends an acceptance via the mail. This acceptance is effective when it is

Sent

Brittany wants to give Shelly a pair of diamond earrings that she has in her safe-deposit box at Regions Bank. Brittany gives Shelly the key to the box and tells her to go to the bank and take the earrings from the box. Shelly does so. Two days later, Brittany dies. The earrings belong to:

Shelly

Which of the following oral contracts does not violate the statute of frauds?

Ted orally agrees to buy a cell phone for $400

Which one of the following statements is incorrect?

The CISG includes a provision for the statute of frauds.

International Statute of Frauds Provisions

The Contracts for the International Sale of Goods (CISG) governs sales contracts. Article 11 of the CISG does NOT incorporate statute of frauds provisions.

Contracts for the Sale of Goods

The UCC 2-201 requires a writing or electronic record for the sale of goods priced at $500 or more. Example: Future Electronics Corp. (FEC) manufactures display screens for use in electronic devices. FEC won a profitable contract with a Malaysian instrument company. FEC entered into an oral contract with Specialty Packaging, Inc. (Specialty) under which Specialty would supply the packing cases needed for FEC's shipments to Malaysia for $1000. Several weeks later, FEC stopped production of its screens and notified Specialty that the contract was cancelled. Specialty had not started manufacturing the cases, but sued for breach of contract, FEC argued that the contract could not be enforced because the contract was not in writing.

On March 1, Danielle orally contracted to work for Acme from April 1 through March 30 of the following year. Under these facts:

The contract violates the statute of frauds because it cannot be performed within one year from the date the contract was formed (made). The one year rule applies to when the contract was formed. This contract was formed on March 1, work begins on April 1 and work ends on March 30th the following year. This contract cannot, by its own terms, be performed within one year from the date it was formed.

Mike promises to pay Laura to work for him in the flower shop. Laura agrees and quits her job, but Mike does not hire her. Mike is liable to Laura based on

The doctrine of promissory estoppel

Parol Evidence Rule

The general rule is that oral representations or promises made prior to the contract's formation or at the time the contract was created, may not be admitted in court. The written contract is assumed to have integrated the subject matter of the earlier discussions into the final agreement. Example: Landlord discusses commercial lease with Tenant 1. Landlord states that Tenant has exclusive right to sell coffee in the mall, but the information is not included in the actual lease. When another tenant starts selling coffee, Tenant 1 brings suit against Landlord for breach of the oral promise. Under the parol evidence rule, the court will not allow testimony about the oral promise.

A person can occupy the property of another and acquire title to the land if they live openly on the property for a continuous period of time (determined by the state) without the permission of the owner.

True

Paul and Candy are a married couple. Candy inherits $25,000 from her father that she uses to purchase a new car. While Candy primarily drives the car, their insurance covers both parties and Paul occasionally drives it. The car is community property.

True

Tenancy by the entirety can only be owned by a married couple.

True

An offer of a reward for the arrest and conviction of a criminal is an example of

Unilateral contract

Promises Made in Consideration of Marriage

Unilateral promise to make monetary payment or gift in consideration of a promise to marry must be in writing. Example:Mr. Smith orally agrees to give Jeff $20,000 when Jeff marries his daughter Carrie. Jeff cannot enforce the promise because it was not in writing.

A bilateral contract consists of a

promise for a promise

Which one of the statements is incorrect?

real property cannot become personal property

A counteroffer is a(n)

rejection of the original offer

Devon, a sixteen-year old minor, purchases a car from Clearwater Used Cars and wrecks it. To disaffirm the contract and satisfy a duty of restitution, Devon must

return the car and pay for the damage

What is not a fixture

rugs

Fay claims that she and Gene entered into a contract. The intent to enter into a contract is determined with reference to

the objective theory of contracts

When money is loaned at a greater rate of interest than is allowed by law, _______ is committed.

usury

Alex sells his business to Kevin and, as part of the agreement, promises not to engage in a business of the same kind within 20 miles for one year. This promise is

valid and enforceable

Harry is adjudicated mentally incompetent. Katy is appointed to act as Harry's guardian. Without Katy's knowledge, Harry signs a contract to sell his house. The contract is

void

An employer may be justified in terminating an employee for all of the reasons except:

whistleblowing

Ordinarily, a promise to perform an existing legal obligation is

Not consideration

Requirements of a Written Contract

1.Contracts involving interest in land/real property 2.Contracts involving "one-year rule" 3.Collateral or secondary contracts - pay debt of another. 4.Promise made in consideration of marriage. 5.Contracts for the sale of goods priced at $500 or more and leases with payments of $1,000 or more.

Statute of Frauds

1.Promise made in consideration of marriage. 2.Collateral or secondary contracts - pay debt of another 3.Executor's promise to pay an estate debt (not tested) 4.Contracts involving "one-year rule" 5.Contracts involving interest in land 6.Contracts for the sale of goods priced at $500 or more

Which of the following can serve as valid consideration for a promise?

A 25 year old refraining from using cigarettes

If no termination date is specified for an offer, the offer will remain open for

A reasonable time

Which one of the following statements is correct?

The principal is required to have contractual capacity.

An oral contract can be enforced when it relates to

The purchase of a fitness tracker for $200

Which one of the following is not considered real property?

Throw Rug

An oral contract can be enforced when it relates to:

the purchase of a fitness tracker for $200

A principal is not liable for the crimes of an agent unless the state has laws that make principals liable the an agent's violation of a regulation, such as state environmental protection laws.

true

For employees who work for tips, employers are only required to pay $2.13 per hour as long as employee's hourly rate + tips at least equals minimum wage.

true