Ch. 16

Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least a. ​$250. b. ​$499. c. ​$500. d. ​$50.

c. $500

Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract a. ​only if Nora agrees to it. b. ​any of the choices. c. only if it is in writing.​ d. ​only if the value of the trumpet is more than $500.

c. only if it is in writing.​

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. ​none of the choices. b. ​any third party, such as a HVAC supplies provider. c. ​Banyan Grove. d. ​Air Flo.

a. none of the choices

Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a. nothing. b. an orally agreed-on condition precedent. c. terms discussed before the contract but not contained in it. d. terms discussed at the time of the contract that contradict the written terms.

a. nothing.

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by a. ​Dick's or REW. b. ​any third party with a material interest, such as one of Dick's suppliers. c. ​none of the choices. d. ​the manufacturer of the mixer.

a. ​Dick's or REW.

Flo agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. ​Flo. b. ​Guitars Inc. c. ​Home Bank. d. ​any third party, such as a Guitars Inc. customer.

a. ​Flo.

Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. a. ​Grain and Hearty, at least to the extent of the performance. b. ​neither party. c. ​Grain only. d. ​Hearty only.

a. ​Grain and Hearty, at least to the extent of the performance.

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. ​a description of the land. b. ​a correct title, such as "Land Transfer" or "Real Estate Agreement." c. ​a declaration of the contract's purpose. d. ​a statement of the source of financing.

a. ​a description of the land.

Ed orally agrees with Far East Restaurant to provide delivery service to its customers for six months. This contract is enforceable by a. ​either Ed or Far East. b. ​Far East only. c. ​any interested third party, such as a Far East customer. d. ​none of the choices.

a. ​either Ed or Far East.

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide security services for Hedge's offices for as long as Hedge needs them. This contract may be enforceable by a. ​either Guardian or Hedge. b. ​none of the choices. c. ​any interested third party, such as a Hedge shareholder. d. ​Hedge only.

a. ​either Guardian or Hedge.

In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided a. ​the e-mail is signed by the party against whom enforcement is sought. b. ​no one else signs a lease for the apartment before Sam moves in. c. ​the parties print and sign a hard copy of a document titled "Lease." d. ​there is outside evidence, such as a security deposit, of the lease.

a. ​the e-mail is signed by the party against whom enforcement is sought.

Retail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify a. ​the quantity. b. ​the price. c. ​the terms of payment. d. ​the source of payment.

a. ​the quantity.

Daredevil Rides Inc. owes debts to Equipment Repair Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by a. ​Equipment only. b. ​Daredevil, Equipment, or Food. c. ​Daredevil only. d. ​none of the choices.

b. ​Daredevil, Equipment, or Food.

Henry files a suit against Irrigation Services to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if a. ​Irrigation denies the existence of a contract. b. ​Henry foreseeably and justifiably relied on Irrigation's promise. c. ​the deal does not involve goods. d. ​neither party has begun to perform.

b. ​Henry foreseeably and justifiably relied on Irrigation's promise.

Charlie and Dill sign a written contract for the sale of Dill's BBQ Food Truck to Charlie. The parties intend their written contract to be a final statement of the terms of their agreement. a. supports the written terms.​ b. ​contradicts the written terms. c. ​duplicates the written terms. d. ​reinforces the written terms.

b. ​contradicts the written terms.

Colin and Delta Water Company enter into an oral contract under which Delta agrees to provide Colin with lifetime employment. This contract may be enforceable by a. ​Colin only. b. ​either Colin or Delta. c. ​any interested third party, such as a Delta supplier. d. ​Delta only.

b. ​either Colin or Delta.

Rough Canyon Adventures, Inc., and Sturdy Stuff Inc. enter into an oral contract for Sturdy's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by a. ​Rough only. b. ​none of the choices. c. ​any interested third party, such as a Rough tour guide or client. d. ​Sturdy only.

b. ​none of the choices.

Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. a. ​completely integrated. b. ​partially integrated. c. ​conditionally integrated. d. ​supplementally integrated.

b. ​partially integrated.

Don and Evon orally agree on the sale of Don's Electrical Supplies Company to Evon and jot down the terms on the back of one of Don's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain a. ​all terms. b. ​the essential terms. c. ​the preliminary terms. d. ​the qualitative terms.

b. ​the essential terms.

Hal's Hardware Inc. and Ideal Tools Corporation sign a written contract 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. ​the parties' contact information. c. a quantity term, such as "50 hammers" or "100 boxes of assorted nails."​ d. ​a date, such as "October 2017" or "10/2017."

c. a quantity term, such as "50 hammers" or "100 boxes of assorted nails."​

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by a. ​Becca. b. ​ActioNOW. c. ​none of the choices. d. ​any third party, such as ActioNOW's clients.

c. none of the choices.

Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if a. ​Polly also promises to pay. b. ​Otto's services will be provided in installments with separate payments. c. ​Nate promises to pay only if Polly does not pay. d. ​Nate assumes primary financial responsibility for the cost.

c. ​Nate promises to pay only if Polly does not pay.

Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. a. ​a pre-contract only. b. ​an oral contract only. c. ​a written contract. d. ​no contract.

c. ​a written contract.

Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. a. ​contradictory. b. ​ambiguous. c. ​consistent. d. ​clear.

c. ​consistent.

Eleanor offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanor's son Glen. This promise is enforceable a. ​only if Glen agrees to marry Flossy. b. ​under no circumstances. c. ​only if it is in writing. d. ​only if the amount of the investment is more than $500.

c. ​only if it is in writing.

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. ​the books, the shoes, and the tablet. b. ​the books only. c. ​the tablet only. d. ​the shoes and the tablet only.

c. ​the tablet only.

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for a. ​the purchase. b. ​the appointment. c. ​none of the choices. d. ​the employment agreement.

d. the employment agreement.

Lucas orally agrees to sell Mountain Spring Water to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against a. ​Lucas and Natural. b. ​no one. c. ​Natural. d. ​Lucas.

d. ​Lucas.

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of a. ​Reliable. b. ​all of the choices. c. ​Quality. d. ​Pumps.

d. ​Pumps.

Charlie and Dill sign a written contract for the sale of Dill's BBQ Food Truck to Charlie. The parties intend their written contract to be a final statement of the terms of their agreement. a. ​a completely severable contract. b. ​a partially divisible contract. c. ​a partially integrated contract. d. ​a completely integrated contract.

d. ​a completely integrated contract.

Marketing, Inc., and Nature's Foods Corporation (NFC) discuss a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Marketing begins to perform, but Nature's refuses to pay. Between Marketing and Nature's, the e-mails are a. ​a pre-contract. b. ​no contract. c. ​a post-contract. d. ​a written contract.

d. ​a written contract.

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to a. ​no extent because the order was placed orally. b. ​the extent of the four undelivered boxes. c. ​any extent because the order was placed orally. d. ​the extent of the three accepted boxes.

d. ​the extent of the three accepted boxes.

Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. a. ​secondary contracts. b. ​collateral promises. c. ​sales of goods. d. ​the one-year rule.

d. ​the one-year rule.

Maya and Nick enter into a contract. To be enforceable, the contract must include a. ​the signature of the party who is seeking enforcement. b. ​the signatures of both Maya and Nick. c. ​no particular signatures. d. ​the signature of the party against whom enforcement is sought.

d. ​the signature of the party against whom enforcement is sought.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be a. ​all of the choices. b. ​signed in a sufficient manner by both parties. c. ​in writing or evidenced by a written memorandum. d. ​substantiated by reliable, external evidence.

​c. in writing or evidenced by a written memorandum.