Chapter 14

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_____ is an equitable doctrine that allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice. Question content area bottom Part 1 A. Commercial impracticability B. Temporary impossibility C. Frustration of purpose D. Part performance E. Undue influence

D. Part performance

Borrowers often give a lender an interest in real property as security for the repayment of a loan. This action must be done through the use of a written mortgage or​ _____. A. quitclaim deed B. writ of replevin C. life estate D. fee simple absolute E. deed of trust

E. deed of trust

Emilio enters into a verbal agreement with the local BMW dealership to lease a BMW X3 for​ $499 per month for 60 months. Which of the following statements is​ true? Question content area bottom Part 1 A. The lease agreement must be in writing to be enforceable. B. The lease agreement can be enforced by Emilio. C. The lease agreement must contain a merger clause to be enforceable. D. The lease agreement is valid under the Statute of Frauds. E. This transaction is subject to Section​ 2-201(1) of the UCC.

The lease agreement must be in writing to be enforceable.

Section​ _____ of the Uniform​ _____ Code is the Statute of Frauds provision that applies to the​ _____ of goods. Question content area bottom Part 1 A. ​2-201(1); Contracts; lease B. ​2-201(1); Contracts; sale C. ​2A-201(1); Commercial; lease D. ​3A-401(1); Contracts; sale E. ​2A-201(1); Commercial; sale

​2A-201(1); Commercial; lease

Donna orally promises Harvey that she will buy his fishing boat for​ $1,000 if Harvey repaints it. For this promise to be enforceable under the doctrine of promissory​ estoppel, which must be​ true? Question content area bottom Part 1 A. Harvey repaints the boat in reliance on​ Donna's promise to buy it. B. The parties must get married to each other. C. The cost of painting the boat must be over​ $500. D. Donna acts in reliance on​ Harvey's promise. E. ​Donna's promise must be in writing.

A. Harvey repaints the boat in reliance on​ Donna's promise to buy it.

​_____ property includes the land​ itself, as well as buildings and fixtures. Question content area bottom Part 1 A. Real B. Personal C. Transient D. Intellectual E. Tangential

A. Real

Romeo enters into an oral contract to supply​ 3,000 brooms for​ $300 to Juliet.​ Later, Juliet asks that the quantity of the goods supplied be increased to​ 5,500 brooms for a total amount of​ $550. Which of the following statements about the contract is​ correct? Question content area bottom Part 1 A. The contract for​ 5,500 brooms must be evidenced in writing to be enforceable. B. The agreement for​ 5,500 brooms is enforceable. C. Neither the agreement for​ 3,000 brooms nor that for​ 5,500 brooms is enforceable. D. A verbal contract may not be amended. E. The agreement to supply​ 3,000 brooms is no longer enforceable.

A. The contract for​ 5,500 brooms must be evidenced in writing to be enforceable.

Which of the following is NOT true about required​ signatures? Question content area bottom Part 1 A. The signature of the person who is enforcing the contract is necessary. B. The signature may appear anywhere on the writing. C. The signature does not have to be a​ person's full legal name. D. The signature may be affixed by an authorized agent. E. The signature of the person who is enforcing the contract is not necessary.

A. The signature of the person who is enforcing the contract is necessary.

Which of the following is NOT a typical category of contracts that must be in writing according to the Statute of​ Frauds? Question content area bottom Part 1 A. contracts for the sale of goods for less than​ $500 B. ​finder's fee contracts C. promises to write a will D. contracts to pay debts barred by the statute of limitations or discharged in bankruptcy E. contracts to pay compensation for services rendered in negotiating the purchase of a business

A. contracts for the sale of goods for less than​ $500

Which of the following is an INCORRECT statement regarding the Statute of​ Frauds? A. ​Generally, an executory contract that is not in writing even though the Statute of Frauds requires it to be is nevertheless enforceable by either​ party, provided the plaintiff introduces sufficient evidence to demonstrate that the contract exists. B. There are several equity exceptions to the Statute of Frauds. C. The Statute of Frauds is usually raised by one party as a defense to the enforcement of the contract by the other party. D. ​Generally, contracts listed in the Statute of Frauds must be in writing to be enforceable. E. If an oral contract that should have been in writing under the Statute of Frauds is already​ executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

A. ​Generally, an executory contract that is not in writing even though the Statute of Frauds requires it to be is nevertheless enforceable by either​ party, provided the plaintiff introduces sufficient evidence to demonstrate that the contract exists.

According to the Statute of​ Frauds, an​ _____ contract that cannot be performed by its own terms within​ _____ of its formation must be in writing. A. ​executory; one year B. ​executory; six months C. ​executed; six months D. ​executed; three months E. ​executory; thirty days

A. ​executory; one year

Certain types of contracts must be in writing pursuant to the Statute of​ _____. Question content area bottom Part 1 A. Parol B. Frauds C. Depose D. Limitations E. Repose

B. Frauds

Borrowers often give a lender an interest in real property as security for the repayment of a loan. This action must be done through the use of a written​ _____ or deed of​ _____. Question content area bottom Part 1 A. ​mortgage; trust B. ​mortgage; divestiture C. ​trust; remainder D. ​license; divestiture E. ​divestiture; trust

A. ​mortgage; trust

Which of the following is a correct statement regarding standards of interpretation of contract terms and​ words? Question content area bottom Part 1 A. General terms are presumed to qualify specific terms. B. Ordinary words are given their usual meaning according to the dictionary. C. If both parties are members of the same trade or​ profession, words will be given their ordinary meaning according to the dictionary. D. When a preprinted form contract is​ used, preprinted words in a contract prevail over typed words. E. If there is an ambiguity in a​ contract, the ambiguity will be resolved against the​ non-drafting party.

B. Ordinary words are given their usual meaning according to the dictionary.

Suppose Echo enters into an oral contract to sell James her used car for​ $10,000, with the delivery date to be May When May 1 comes and James tenders​ $10,000 to​ Echo, Echo refuses to sell her car to James. Which of the following is a correct statement regarding the enforceability of the oral contract between Echo and​ James? Question content area bottom Part 1 A. The contract will be enforced against​ Echo, provided that James can introduce evidence sufficient to establish that the oral contract existed. B. The contract will not be enforced against Echo because it was an oral contract for the sale of goods costing​ $500 or more. C. The contract will be enforced against​ Echo, since the Uniform Commercial Code is decidedly​ pro-consumer. D. The contract will not be enforced against Echo because the Uniform Contracts Code requires that contracts for the sale of goods valued at​ $5,000 or more must be in writing to be enforceable. E. The contract will not be enforced against Echo because the Interstate Commerce Code requires that contracts for the sale of goods valued at​ $10,000 or more must be in writing to be enforceable.

B. The contract will not be enforced against Echo because it was an oral contract for the sale of goods costing​ $500 or more.

Which of the following is an INCORRECT statement regarding the doctrine of promissory​ estoppel? Question content area bottom Part 1 A. When the doctrine of promissory estoppel​ applies, the promisor is estopped from raising the Statute of Frauds as a defense to the enforcement of the oral contract. B. The doctrine of promissory estoppel is a legal exception to the strict application of the parol evidence rule. C. The Restatement​ (Second) of Contracts states that in order for the doctrine of promissory estoppel to​ apply, the​ promisor's oral promise must induce action or forbearance by the promisee. D. The Restatement​ (Second) of Contracts states that in order for the doctrine of promissory estoppel to​ apply, the​ promisee's reliance on the oral promise must have been foreseeable. E. The Restatement​ (Second) of Contracts states that in order for the doctrine of promissory estoppel to​ apply, injustice can be avoided only by enforcing the oral promise.

B. The doctrine of promissory estoppel is a legal exception to the strict application of the parol evidence rule.

Which of the following is an INCORRECT statement regarding the parol evidence​ rule? Question content area bottom Part 1 A. Any oral or written words outside the four corners of the written contract are called parol evidence. B. The parol evidence rule was originally developed by courts as part of the common law of torts. C. According to the parol evidence​ rule, a completely integrated contract is viewed as the best evidence of the terms of the​ parties' agreement. D. Parol means​ "word." E. The UCC has adopted the parol evidence rule for sales and lease contracts.

B. The parol evidence rule was originally developed by courts as part of the common law of torts.

Emilio enters into a written agreement with the local BMW dealership to purchase a BMW X3 for​ $49,900. The salesperson promises to throw in a luggage​ rack, but does not write it into the agreement. Which of the following statements is NOT​ true? Question content area bottom Part 1 A. The promise to provide a luggage rack is enforceable. This is the correct answer. B. The parol evidence rule will prevent the verbal statement to be included in the written agreement. C. The modification must be in writing to be enforceable. D. This transaction is subject to Section​ 2-201(1) of the UCC. E. The written agreement for the sale of the BMW is valid under the Statute of Frauds.

B. The parol evidence rule will prevent the verbal statement to be included in the written agreement.

Which of the following is NOT a correct statement regarding standards of interpretation of contract terms and​ words? Question content area bottom Part 1 A. If both parties are members of the same trade or​ profession, words will be given their meaning as used in the trade. B. When a preprinted form contract is​ used, preprinted words in a contract prevail over typed words. C. Ordinary words are given their usual meaning according to the dictionary. D. Specific terms are presumed to qualify general terms. E. If there is an ambiguity in a​ contract, the ambiguity will be resolved against the drafting party.

B. When a preprinted form contract is​ used, preprinted words in a contract prevail over typed words.

Which of the following is NOT a typical category of contracts that must be in writing according to the Statute of​ Frauds? Question content area bottom Part 1 A. contracts for the sale of goods for​ $500 or more B. contracts for services C. contracts that by their own terms cannot possibly be performed within one year D. promises made in consideration of marriage E. contracts involving interests in real property

B. contracts for services

In a guaranty​ situation, the​ _____ contract is between the person who agrees to pay the debt if the primary debtor does not and the original creditor. Question content area bottom Part 1 A. licensing B. guaranty C. primary D. original E. subrogation

B. guaranty

​A(n) _____ clause in a contract stipulates that it is a complete integration and the exclusive expression of the​ parties' agreement. Question content area bottom Part 1 A. subsidiary B. merger C. acquisition D. subordination E. consolidation

B. merger

Where this doctrine of promissory estoppel​ applies, the promisor is​ _______ the Statute of Frauds as a defense to the enforcement of the​ ________. Question content area bottom Part 1 A. required to​ raise; oral contract B. prevented from​ raising; oral contract C. prevented from​ raising; written contract D. required to​ raise; written contract E. not bound​ by; written contract

B. prevented from​ raising; oral contract

Suppose Edward enters into an oral contract to sell his house to Lana for​ $400,000, with the closing of the transaction to be in 30 days. At the time of​ closing, Edward signs the deed to the property to​ Lana, and Lana pays Edward the​ $400,000 purchase price. Will either Edward or Lana be able to effectively raise the Statute of Frauds to rescind their​ contract? Question content area bottom Part 1 A. ​Yes, Edward can rescind the​ contract, but Lana cannot. B. ​No, the oral contract has already been executed. C. ​No, the Statute of Frauds does not apply to contracts for the sale of real estate. D. ​Yes, provided that either Edward or Lana rescinds the contract within three business days after the closing. E. ​Yes, according to the Statute of​ Frauds, contracts for the sale of real estate must be in writing in order to be enforceable.

B. ​No, the oral contract has already been executed.

Jacinda tells Xavia that if she moves in and takes care of​ Jacinda's mother, who is not expected to live much​ longer, that Jacinda will deed​ one-half ownership in the house to her. Jacinda moves in and takes care of​ Jacinda's mother until she passes away a year later. Can Xavia enforce the promise that Jacinda made to​ her? Question content area bottom Part 1 A. ​Yes, because it was an executory contract B. ​Yes, under the doctrine of promissory estoppel C. ​No, the UCC would prevent such a contract from being enforceable D. ​No, contracts regarding real estate must be in writing E. ​No, not according to the parol evidence rule

B. ​Yes, under the doctrine of promissory estoppel

Roger is a successful attorney in Houston with a thriving practice.​ Roger's grandparents call Roger on the phone and promise to leave their farm to him in their will if he moves his family from Texas to Wisconsin and manages their cheese restaurant. Roger does so and takes a significant salary cut. Several years​ later, when the grandparents pass​ away, Roger discovers that they never changed their will to leave him the farm. Which of the following is​ true? Question content area bottom Part 1 A. Roger did not act in reliance on the promise. B. The promise is invalid under the parol evidence rule. C. Roger may enforce the promise under the equitable doctrine of promissory estoppel. D. It was not reasonable to expect the grandparents to leave Roger the farm. E. The promise needed to be in writing to be enforceable.

C. Roger may enforce the promise under the equitable doctrine of promissory estoppel..

The​ _____ establishes Statutes of Fraud for contracts for the sales and leases of goods. Question content area bottom Part 1 A. United Nations B. League of Nations C. Uniform Commercial Code D. Interstate Commerce Code E. Uniform Contracts Code

C. Uniform Commercial Code

According to the​ _____ exception to the Statute of​ Frauds, if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the​ guarantor, the collateral contract does not have to be in writing to be enforced. Question content area bottom Part 1 A. commercial impracticability B. corollary object C. leading object D. frustration of purpose E. substantial performance

C. leading object

The version of promissory estoppel in the Restatement​ (Second) of Contracts provides that if parties enter into an oral contract that should be in writing under the Statute of​ Frauds, the oral promise is enforceable against the promisor if certain conditions are met. Which of the following is NOT one of these​ conditions? Question content area bottom Part 1 A. injustice can be avoided only by enforcing the oral promise B. the promise relied on the oral promise C. the promise was in writing D. the reliance was foreseeable E. the promise induces action or forbearance of action by another

C. the promise was in writing

If​ a(n) ______ contract for the sale of land or transfer of other interests in real property has been partially​ performed, it may not be possible to return the parties to their status quo. To solve this​ problem, the courts have developed the equitable doctrine of​ _______________. Question content area bottom Part 1 A. ​oral; integration B. ​written; part performance C. ​oral; part performance D. ​implied; part performance E. ​oral; main purpose exception

C. ​oral; part performance

​Generally, an executory contract that is not in writing even though the Statute of Frauds requires it to be is​ _____ by​ _____. Question content area bottom Part 1 A. ​enforceable; a court of equity B. ​enforceable; the​ offeror, but not the offeree C. ​unenforceable; either party D. ​enforceable; the​ offeree, but not the offeror E. ​enforceable; either party

C. ​unenforceable; either party

The Statute of Frauds and the UCC require​ a(n) ________​ contract, whatever its​ form, to be signed​ _________. Question content area bottom Part 1 A. ​written; by the party who is enforcing the contract B. ​oral; by the party against whom enforcement is sought C. ​written; by the party against whom enforcement is sought D. ​written; by all parties E. ​oral; by no one

C. ​written; by the party against whom enforcement is sought

Which of the following is an INCORRECT statement regarding a life​ estate? Question content area bottom Part 1 A. A life estate is an interest in real property. B. The interest in real property will be transferred to another party when the holder of the life estate dies. C. A life estate is an ownership interest. D. A life estate need not be in writing in order to be enforceable. E. A life estate is an interest in real property for a​ person's lifetime.

D. A life estate need not be in writing in order to be enforceable.

Which of the following is NOT true about an executory​ contract? Question content area bottom Part 1 A. It is a contract that has not been fully performed. B. If it is required to be in writing under the Statute of​ Frauds, it is not enforceable. C. The Statute of Frauds is typically used as a defense to the enforcement of an executory contract. D. It is not subject to the Statute of Frauds. E. They are also known as executory agreements.

D. It is not subject to the Statute of Frauds.

Which of the following is NOT true about a merger​ clause? Question content area bottom Part 1 A. It states that that parol evidence may not be introduced to​ explain, alter,​ contradict, or add to the terms of the contract. B. It is sometimes called an integration clause. C. It stipulates that the contract is a complete integration and the exclusive expression of their agreement. D. It permits prior written evidence to be included in interpreting a contract. E. It reiterates the parol evidence rule.

D. It permits prior written evidence to be included in interpreting a contract.

Under the​ _____, a unilateral promise to pay money or property in consideration for a promise to marry must be in writing. Question content area bottom Part 1 A. Statute of Limitations B. Statute of Repose C. Defense of Marriage D. Statute of Frauds E. Parol Evidence Rule

D. Statute of Frauds

Which of the following is NOT a typical category of contracts that must be in writing according to the Statute of​ Frauds? Question content area bottom Part 1 A. ​agents' contracts where the underlying contract must be in writing B. real estate​ agents' contracts C. contracts for the lease of goods with payments of​ $1,000 or more D. contracts that by their own terms cannot possibly be performed within thirty days E. promises to write a will

D. contracts that by their own terms cannot possibly be performed within thirty days

Many state Statutes of Frauds require that​ agents' contracts to sell real property covered by the Statute of Frauds be in writing to be enforceable. The requirement is often referred to as the​ _____ rule. Question content area bottom Part 1 A. ​due-on-sale B. professional courtesy C. agency demonstration D. equal dignity E. ​third-party beneficiary

D. equal dignity

Logan tells Annika that he will sell her his car for​ $5,000. When Annika tries to give Logan a check for​ $5,000, he says he no longer wants to sell her the car. This is​ _______. Question content area bottom Part 1 A. a modification of contract B. an​ agent's contract C. a​ "main purpose" exception D. not a contract

D. not a contract

According to the​ _____, if a written contract is a complete and final statement of the​ parties' agreement, any prior or contemporaneous oral or written statements that​ alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract. Question content area bottom Part 1 A. Statute of Frauds B. Statute of Repose C. substantial performance doctrine D. parol evidence rule E. commercial impracticability doctrine

D. parol evidence rule.

In a guaranty​ situation, the​ _____ contract is between the debtor and the creditor. Question content area bottom Part 1 A. tertiary B. conditional C. licensing D. primary E. secondary

D. primary

According to the Statute of​ Frauds, an​ _____ contract that cannot be performed by its own terms within​ _____ of its formation must be in writing. Question content area bottom Part 1 A. ​oral; thirty days B. ​executory; sixty days C. ​oral; ninety days D. ​executory; one year E. ​executory; one hundred twenty

D. ​executory; one year.

The Uniform​ _____ Code establishes statutes of fraud for contracts for the sale and lease of goods. Question content area bottom Part 1 A. Fraud B. Contracts C. Equity D. Criminal E. Commercial

E. Commercial

Which of the following is an INCORRECT statement regarding the doctrine of part​ performance? Question content area bottom Part 1 A. The doctrine of part performance is an equitable doctrine. B. If a purchaser of real estate has made valuable improvements to the​ property, a court may recognize the doctrine of part performance. C. If a purchaser of real estate has paid part of the purchase price and taken possession of the​ property, a court may recognize the doctrine of part performance. D. The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of other interests in real property to be specifically performed if performance is necessary to avoid injustice. E. If an oral contract for the sale of land or transfer of other interests in real property has been partially​ performed, it is always possible to return the parties to their status quo.

E. If an oral contract for the sale of land or transfer of other interests in real property has been partially​ performed, it is always possible to return the parties to their status quo.

​Jeremiah, who has​ Parkinson's disease and is no longer able to sign his name to a document due to the shakiness of has​ hand, places an​ "X" on the last page of the contract. Which of the following is​ true? Question content area bottom Part 1 A. Because Jeremiah is unable to sign his​ name, he must use an authorized agent to sign on his behalf. B. Jeremiah may enforce the contract against the other​ party, even if that party has not signed the contract. C. The signature is not binding because it does not contain his full legal name. D. The signature is only binding if witnessed. E. Jeremiah has entered into a binding contract.

E. Jeremiah has entered into a binding contract.

Anastasia and Frankie wish to enter into a contract for the sale of​ Anastasia's home. Which of the following is true about the required​ signature? Question content area bottom Part 1 A. The signature may not be digital. B. The contract must be written by an attorney. C. The signature must include both the first and last name of each of the parties. D. The contract must be signed by both parties to be valid E. The contract must be signed by the party to be charged or their authorized agent.

E. The contract must be signed by the party to be charged or their authorized agent.

Which of the following is an INCORRECT statement regarding the​ one-year rule of the statute of​ frauds? Question content area bottom Part 1 A. If performance of a contract is possible within one​ year, the contract may be oral. B. The​ one-year rule of the Statute of Frauds is intended to prevent disputes about contract terms that may otherwise occur toward the end of a​ long-term contract. C. According to the Statute of​ Frauds, an executory contract that cannot be performed by its own terms within one year of its formation must be in writing. D. The extension of an oral contract might cause the contract to violate the Statute of Frauds if the original terms and the extension period exceed one year. E. The​ one-year rule of the statute of frauds is per se unconscionable.

E. The​ one-year rule of the statute of frauds is per se unconscionable.

Both the​ ________ and the​ _______ permit several writings to be integrated to form a single written contract. Question content area bottom Part 1 A. doctrine of part​ performance; UCC B. ​UCC; parol evidence rule C. Statute of​ Frauds; UCC D. common law of​ contracts; parol evidence rule E. common law of​ contracts; UCC

E. common law of​ contracts; UCC

A​ _____ contract occurs when one person agrees to answer for the debts or duties of another person. Question content area bottom Part 1 A. ​due-on-sale B. service C. requirements contract D. licensing E. guaranty

E. guaranty

Eleanor and Justine verbally agree to sell their car to Joyce for​ $10,000. Before Joyce takes possession of the​ car, this contract is enforceable by​ _____. Question content area bottom Part 1 A. Eleanor or Justine only B. any of the parties C. Joyce only D. either Eleanor or Justine E. none of the parties

E. none of the parties

The parties to a written contract may include a clause stipulating that the contract is a complete integration and the exclusive expression of their agreement and that​ _______ may not be introduced to​ explain, alter,​ contradict, or add to the terms of the contract. This type of clause is known as a ​ _______ clause, or​ a(n) _______ clause. Question content area bottom Part 1 A. the doctrine of part​ performance; UCC; common law of contracts B. the​ UCC; parol​ evidence; part performance C. the Statute of​ Frauds; UCC; common law of contracts D. parol​ evidence; part​ performance; specific performance E. parol​ evidence; merger; integration

E. parol​ evidence; merger; integration

Under which of the following circumstances is parol evidence inadmissible in​ court? Question content area bottom Part 1 A. when the parol evidence explains ambiguous language B. when the parol evidence corrects an obvious clerical or typographical error C. when the parol evidence shows that a contract is voidable D. when the parol evidence shows that a contract is void E. when the parol evidence conflicts with the terms of the written contract

E. when the parol evidence conflicts with the terms of the written contract

Section​ _____ of the Uniform Commercial Code is the basic​ _____ provision for sales contracts. Question content area bottom Part 1 A. ​3-401(1); Statute of Frauds B. ​2-201(1); Statute of Limitations C. ​2-201(1); parol evidence rule D. ​3-401(1); Statute of Limitations E. ​2-201(1); Statute of Frauds

E. ​2-201(1); Statute of Frauds

Jacinda enters into a written agreement with​ Xavia, a​ home-care nurse, to take care of​ Jacinda's mother, who is not expected to live much longer. Both parties sign the​ agreement, and Xavia is paid​ $1,000 per week per the agreement for her services. When they are signing the​ contract, and because Jacinda is so happy that she found someone to take care of her​ mother, she verbally promises to deed​ one-half ownership in the house to Xavia. Can Xavia enforce the promise that Jacinda made to deed her​ one-half of the​ house? Question content area bottom Part 1 A. ​Yes, because it was an executory contract B. ​No, contracts regarding real estate must be in writing C. ​Yes, under the doctrine of promissory estoppel D. ​No, the UCC would prevent such a contract from being enforceable E. ​No, not according to the parol evidence rule

E. ​No, not according to the parol evidence rule

Parol evidence may be admitted in court if it shows that a contract is​ ________ or​ _____________. Question content area bottom Part 1 A. ​valid; void B. ​valid; voidable C. ​merged; integrated D. ​modified; integrated E. ​void; voidable

E. ​void; voidable

Jamie tells Renata that he will sell her his car for​ $600. Renata agrees and then decides not to pay. She​ does, however, tell Jamie she will pay​ $400 and Jamie agrees. The latter is​ _______. Question content area bottom Part 1 A. breach of contract B. not a contract C. a​ "main purpose" exception D. an​ agent's contract E. a valid contract

a valid contract


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