CH. 15

A collateral promise is an undertaking to be secondarily liable.

True

The "marriage provision" of the statute of frauds applies only if a promise to marry is made in consideration for some promise other than a mutual promise to marry.

True

By an oral agreement entered into on January 1, 2000, A hires B to work for eleven months starting on February 1, 2000. This contract is: a. enforceable because this contract is outside the statute of frauds. b. enforceable because it can be performed within a year of the start of performance. c. unenforceable because it cannot be performed within one year of when it was made. d. (a) and (b) above.

a. enforceable because this contract is outside the statute of frauds.

In a contract for the sale of goods costing more than $500, the statute of frauds provisions apply except: a. where an admission has been made. b. where the goods have been specially manufactured. c. where there has been a delivery of and payment for the goods. d. all the above are exceptions to statute of frauds provisions.

d. all the above are exceptions to statute of frauds provisions.

In order to comply with the requirements of most statutes of frauds, the writing or memorandum must be signed by both parties to the agreement.

False

It is optional with the parties, under the statute of frauds, whether to reduce their agreement to writing.

False

Under the parol evidence rule, words can be introduced in court which vary or contradict the terms of an integrated contract.

False

Under the "main purpose rule," an oral contract which would ordinarily require a writing can be enforced.

True

CPA: Sand orally promised Frost a $10,000 bonus, in addition to a monthly salary, if Frost would work for two years for Sand. If Frost works for the two years, will the statute of frauds prevent Frost from collecting the bonus? a. No, because Frost fully performed in reliance on the oral promise. b. No, because the contract did not involve an interest in real estate. c. Yes, because the contract could not be performed within one year. d. Yes, because the monthly salary was the consideration of the contract.

a. No, because Frost fully performed in reliance on the oral promise.

In which of the following situations would an oral contract that should have been within the statute of frauds no longer have to be written to be enforceable? a. The contract has been fully performed. b. The contract has been partially performed. c. The parties had a previous course of dealing. d. Oral contracts are a common practice in that trade.

a. The contract has been fully performed.

A party seeks to introduce evidence of a subsequent oral agreement modifying a written employment contract from 2 to 3 years. The oral agreement is a. admissible under the parol evidence rule and valid under the statute of frauds. b. admissible under the parol evidence rule, but invalid because of the statute of frauds. c. inadmissible under the parol evidence rule, but valid under the statute of frauds. d. inadmissible under the parol evidence rule and invalid under the statute of frauds.

b. admissible under the parol evidence rule, but invalid because of the statute of frauds.

Under the statute of frauds provision of the UCC, if a writing that is otherwise sufficient incorrectly states the quantity term agreed upon by the parties, the contract is: a. unenforceable. b. enforceable, but only to the extent of the quantity of goods stated in the writing. c. enforceable to the extent of the quantity term orally agreed upon by the parties. d. enforceable to the extent determined by the court to be fair and reasonable at the time of enforcement of the contract.

b. enforceable, but only to the extent of the quantity of goods stated in the writing.

All of the following are required of a writing to satisfy the requirements of the general statute of frauds EXCEPT: a. it must be signed by the party to be charged or his agent. b. it must be signed by the party seeking to enforce the contract or his agent. c. it must specify the parties to the contract. d. it must specify with reasonable certainty the subject matter of the unperformed promises as well as their essential terms.

b. it must be signed by the party seeking to enforce the contract or his agent.

Which of the following contracts need not be in writing to be enforced? a. Arthur agrees to buy Bob's house for $60,000. b. Clara's Aunt Amanda promises Clara $1,000 if she will marry Brad. c. Bill Buyer agrees to buy $450 in goods from Sam Seller. d. Oscar agrees to work for Big Bucks, Inc., for two years beginning June 1.

c. Bill Buyer agrees to buy $450 in goods from Sam Seller.

The following promises or contracts are within the statute of frauds EXCEPT: a. the promise of an executor or administrator that he personally will pay all of the decedent's creditors in full. b. a promise to marry made in consideration for some promise other than a reciprocal promise to marry. c. a promise made by a father to his son by which the father will pay the son's debt in the event of his son's default. d. a promise made by a father to his son's creditor to pay the son's debt in the event of his son's default.

c. a promise made by a father to his son by which the father will pay the son's debt in the event of his son's default.

CPA:The statute of frauds: a. prevents the use of oral evidence to contradict the terms of a written contract. b. applies to all contracts having consideration valued at $500 or more. c. requires the independent promise to pay the debt of another to be in writing. d. applies to all real estate leases.

c. requires the independent promise to pay the debt of another to be in writing.

A course of dealing is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.

False

A writing required under the UCC, Article 2 statute of frauds must be signed at the end of the writing with the intent to authenticate the writing.

False

The parol evidence rule is a rule of evidence that prohibits the parties from subsequently orally modifying their written contract.

Flase

The UCC provides that a contract for the sale of goods for the price of $500 or more must satisfy the requirements of the statute of frauds.

True

The parol evidence rule applies to all integrated, written contracts and deals with what terms are part of the contract.

True

The parol evidence rule does not apply to parol evidence which is used to show a subsequent mutual rescission of a contract.

True

The statute of frauds does not relate to the circumstances surrounding the making of a contract or to the validity of a contract.

True

The suretyship provision has been interpreted not to include promises made to a debtor.

True

Where the "main purpose" of the promisor is to obtain an economic benefit for herself that she did not previously have, the promise is outside the statute, and need not be in writing to be enforceable.

True

Arthur writes a letter to Bob in which he promises to pay Clark's debts if Clark doesn't pay. a. Arthur's promise is a primary promise. b. Arthur's promise is an original promise. c. Arthur's promise is a collateral promise. d. Arthur's promise falls within the main purpose doctrine.

c. Arthur's promise is a collateral promise.

If a contract is expressed in a writing that is intended by the parties to be the complete and final expression of their rights and duties under the contract, the parol evidence rule precludes the admission into evidence of all of the following EXCEPT: a. prior oral negotiations or agreements of the parties. b. prior written negotiations of the parties. c. a subsequent oral agreement between the parties to modify the terms of the contract. d. a contemporaneous oral agreement between the parties that varies or changes the written contract.

c. a subsequent oral agreement between the parties to modify the terms of the contract.

Which of the following contracts are within the statute of frauds and therefore must meet its requirements in order to be enforceable? a. A contract to sell half-acre lots of land in a 60-acre subdivision b. A six-month lease of an apartment c. A deed granting an easement d. (a) and (c) above

d. (a) and (c) above

The parol evidence rule will bar the introduction of: a. evidence that one of the parties to the contract was a minor. b. evidence of fraud in the formation of the contract. c. evidence of usage and custom that is not inconsistent with the terms of the written agreement. d. evidence of a letter written prior to the execution of the final contract stating that the price to be charged for the goods was $2.00 each rather than $2.10 as provided in the final contract.

d. evidence of a letter written prior to the execution of the final contract stating that the price to be charged for the goods was $2.00 each rather than $2.10 as provided in the final contract.