ACCT 324 Chapter 18

What is not a valid exception to the statute of frauds?

a contract that is unprofitable to all parties

Equal Dignity Rule

a rule requiring that contracts would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent

Admission

a statement made in court or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing

Integrated Contract

a written contract intended to be the complete and final representation of the parties' agreement

What is the common law rule that bars the admission of oral testimony to prove agreement to certain terms if there is a written contract between the parties after the oral testimony occurs?

parol evidence rule

The exception to the statute of frauds that is applicable when a buyer of land has paid a portion of the sales price to prove the existence of a contract is

partial performance

Which of the following are exceptions to the statute of frauds?

partial performance on a contract in an instance where promissory estoppel has been established admission by one party to a contract

What are the elements of a written agreement under the statute of frauds?

parties to a contract must be identified the subject matter of the agreement must be defined all pertinent terms must be listed

For compliance with the statute of frauds one-year rule, the one year is measured by the:

possibility of completing the contract

The title "statute of frauds" is misleading because

there is not one statute, but rather the statute of frauds is a general collection of concepts that has been incorporated at the state level

If a contract can possibly be performed within a year, even if such performance is highly ______, then the contract _______ be in writing to be enforceable.

unlikely does not need to

If a fully integrated agreement has been written, then what is the presumption?

The presumption is that no oral evidence can be admitted to change terms of contract.

The written requirement under the statute of frauds can be demonstrated by:

having several written documents as a part of a contractual agreement

Condition Precedent

in a contract, an event that must occur in order for a partys duty to arise

The origin for our statute of frauds was the English law, Act for the Prevention of Frauds and Perjuries, which was passed in:

1677

In contracts for the lease of goods or the sale of securities, the UCC indicates that if the contract is over ______, it must be writing

5000

Parol Evidence Rule

A common law rule which states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend to have the written agreement be the complete and final version of their agreement.

What constitutes a valid admission under the statute of frauds?

An admission is a statement under oath or as part of a legal process in which a party being sued admits the existence of a contract.

What are the reasons why a partial performance exception to the statute of frauds could be applied

Buyer has taken possession of a land interest as part of a contract Partial payment for a contract involving an interest in land

What kind of contract has an event or occurrence that must occur before the contract can be executed?

Condition precedent contract

Identify the circumstances in which the Statute of Frauds applies

Contracts related to an interest in land Contracts involving secondary suretyships

What are some of the exceptions to the parol evidence rule?

Contracts with ambiguous terms Contracts that have been subsequently modified

What are the elements of the statute of frauds exception for promissory estoppal?

One party detrimentally relied on an oral promise. The detrimental reliance of the injured party could have been foreseen by the other party.

What section of the UCC requires contracts in excess of $500 to be in writing?

Section 2-201

A(n) ______ is a statement made _______ or at some legal proceeding in which one party against whom charges have been brought admits to the existence of a contract.

admission under oath

If a written agreement has missing parts, the court will

admit parol evidence to fill in missing parts

If oral evidence is being offered to clarify an ambiguous term in a written contract, then the court will

admit the oral evidence

Under the statute of frauds, it is _______ that a document be signed by ______ parties.

all of the not required

When calculating the length of time it will take for performance on a contract to determine if the contract falls within the scope of the statute of frauds, the start date for calculating time will be the day

alter the contract is create

Prenuptial Agreement

an agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other parties property

Partial Performance

an exception to the statute of frauds in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties

Under the parol evidence rule, oral testimony is inadmissible to prove certain terms or agreement if it comes

at the same time as the execution of the written contract. before the existence of a written contract.

What states do not allow the admission exception as part of the statute of frauds?

california minnesota

A written agreement under the parol evidence rule is presumed to be

complete

______ is not legally required for a(n) _______ agreement, but courts tend to privilege agreements that include it.

consideration prenuptial

The partial performance exception to the statute of frauds deals with

contracts with a property interest

Primary Obligations

debt incurred in an initial contract

The parol evidence rule _______ parties from introducing evidence that a written agreement was conditioned on terms agreed to ______.

does not prevent orally

One of the main purposes of the statute of frauds is to prevent parties from

entering into contracts to which they do not agree

According to the ______ rule, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal, must also be in writing if negotiated by a(n) ______.

equal dignity agent

Promissory _______ is the legal enforcement of an otherwise unenforceable contract due to ______ reliance.

estoppel detrimental

The statute of frauds provides an exception to its writing requirement when one party ______ relied on an oral contract, and this reliance was _______ by the other party.

forseeable detrimentally

Under the statute of frauds, an individual can make a(n) ______ on a contract to indicate a signature, as long as that was the _______ of the party.

intent mark

In order to have promissory estoppel, the agreement

is not otherwise an enforceable contract

Since the statute of frauds requires a writing as evidence of the contract for sale of _______, a claim of an oral contract is _______ such a contract existed.

land not enough to prove

Mortgages and _______ fall within the statute of frauds because they are considered ______ interest in land.

leases transfers to an

_______ is the only state that does not allow the admission exception as part of the statute of frauds.

louisiana

What states have not passed legislation to incorporate a statute of frauds in their state code?

louisiana new mexico

One of the benefits of the statute of frauds is that it:

makes contractual negotiations easier by ensuring all the specific terms of a contract are written and aware to all parties

If one party promises something to another party as part of an offer of _______ then the contract must be ______.

marriage written

One way parties can create a(n) _______ contract is by having a(n) ______ clause in the contract.

merger integrated

Some states will treat _______ clauses as ______, not binding elements of the contract the court must enforce.

merger recommendations

Parol evidence regarding a contracts's subsequent ______ are an exception to the parol evidence rule and _______ in court.

modifications admissible

The following transfer in interests in land fall within the statute of frauds?

mortgage contracts lease contracts

If there is something in addition to a promise to marry as part of a marriage agreement, then the agreement:

must be in writing

There is ______ federal legislation entitled "statute of frauds", but rather the concept of the statute of frauds exist in _______ law.

no state

When an agreement consists of both written and oral elements, then judges tend to treat the _______ contract as ______.

not finalized written

If a merchant agrees to sell goods to _______, it will be enforceable under the UCC even if it is ______.

not in writing another merchant

_______ contracts for customized goods are ______, even if they would normally have to be in writing according to the UCC.

oral enforceable

The common law makes _____ evidence of an agreement _______ if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement.

oral inadmissible

One of the purposes of the statute of frauds is to ______ unreliable _______ evidence from interfering with a contractual relationship.

oral prohibit

_______ contracts for _______ goods are enforceable even if they would normally have to be in writing.

oral specialized

By requiring that a contract be in writing, the statute precludes the admittance of _____ evidence denying the existence of a contract or claiming additional terms that would _______ alter the contract from its agreed-on written form.

oral substantially

Like the statute of frauds, the ______ evidence rule allows for seven ______ that would be admissible in court.

parol exceptions

Courts can allow ______ evidence to ______ the missing parts, while not modifying the written agreement in any substantial way.

parol oral fill in

A court will allow what type of evidence to prove a subsequent modification of a written contract?

parol evidence

When considering whether a contract falls within the scope of the statute of frauds, the issue is not whether the contract will be _______ within a year, but rather whether it is ______ the contract can be completed in a year.

possible completed

Evidence of the existence of a condition _______ agreed to orally is _______, because the contract is not modified by such evidence.

precedent admissible

One of the main purposes of the statute of frauds is to ______ parties from entering into a contract with which they do ______.

prevent not agree

A benefit of the statute of frauds to enforcement of a contract is that it

prevents unreliable oral evidence from interfering with a contractual relationship

______ obligations, or debts incurred in an initial contract, are not within the statute of frauds and therefore, _______ to be enforceable.

primary need not be in writing

Contracts that have terms that ______ possible performance within a year fall _______ the scope of the statute of frauds.

prohibit within

What are the types of contracts that fall within the scope of the statute of frauds?

promises made in consideration of marriage contracts related to an interest in real property

In an agreement for the sale of goods over $500, only the _____ needs to be stated.

quanity

A(n) _______ obligation occurs when a party ______ a primary agreement promises to fulfill one of the original party's debts or obligations.

secondary outside

______ obligations do require a written contract, unless the main purpose of the contract is to obtain a(n)_______

secondary personal benefit

Which of the following does not fall within the statute of frauds and as such, the contract does not have to be in writing?

secondary obligations where the main reason is to obtain a personal benefit primary obligations

Secondary obligations are also known as:

secondary promises collateral promises

The term "parol" means:

speech or words outside of the written contract

Statute of Frauds

state level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statute

If the main purpose for taking on a secondary obligation is personal benefit, then

the agreement does not fall under the statute of frauds and does not have to be in writing.

Which of the following are not elements of a written agreement under the statute of frauds?

the agreement must be signed by an agent, not the principal to the contract the agreement must be profitable for both parties

If there is a property interest attached to a marriage contract, then what is true about the contract?

the contract must be in writiting

For the contract for sale of goods to be enforceable, both the UCC and the statute of frauds require that only _______ must have signed the written document

the defendant the party against whom action is sought

Within the statute of frauds, the term "land" means:

the land and soil itself of a parcel of property anything attached to the parcel of property, such as tress and buildings

Promissory Estoppel

the legal enforcement of an otherwise enforceable contract due to a party's detrimental reliance on the contract

Parol evidence will be admitted to determine if a contract is ______ or ______.

voidable void

Secondary Obligations

when a party outside a primary agreement promises to fulfill one of the original partys obligation if the original party fails to fulfill it

The required elements of a(n) _______ agreement under the statute of frauds are ______ of parties, subject matter of the agreement, consideration, and any pertinent terms

written identification