Tingnan ang lahat ng mga set ng pag-aaral

Blaw Chapter 15, Business Law Chapter 15 3

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Contracts Within the Statute of Frauds: Sale of goods for $500 or more. What are the Exceptions?

Admission Specially manufactured goods Delivery or payment and acceptance

Can Articles of the UCC be included in the UETA?

All Articles of the UCC EXCEPT Articles 2 and 2A

A suretyship involves: a. two parties and one contract. b. three parties and one contract. c. three parties and two contracts. d. two parties and three contracts.

If a contract for a year's performance is to begin the day following the making or, under the terms of the agreement, could have begun the following day, it is ___________

It is not within the statute and need not be in writing.

Define The Land Contract Provision

Land contract provision applies to promises to transfer any right, privilege, power, or immunity in real property

Contracts Within the Statute of Frauds: Executor-Administrator—a promise to answer personally for debt of decedent. What are the Exceptions?

Main purpose rule Original promise Promise made to debtor

Contracts Within the Statute of Frauds: Suretyship—a promise to answer for the duty of another. What are the Exceptions?

Main purpose rule Original promise Promise made to debtor

Define The Marriage Provision

Marriage provision applies to promises in consideration of marriage but not to mutual promises to marry

Contracts Within the Statute of Frauds: Agreements made upon consideration of marriage. What are the Exceptions?

Mutual promises to marry

Can a Codicils be formed over electronic means?

Can a Testamentary Trusts be formed over electronic means?

Can a coverage will be formed over electronic means?

Does E-Sign require any persons to agree to use or accept electronic records or electronic signatures?

NO, E-Sign does not require any person to agree to use or accept electronic records or electronic signatures. The Act defines transactions quite broadly to include the sale, lease, exchange, and licensing of personal property and services, as well as the sale, lease, exchange, or other disposition of any interest in real property.

Is it necessary that the writing or record be in existence when the parties initiate litigation?

NO.

Edgar, who is Donna's son and executor of Donna's will, recognizes that Donna's estate will not have enough funds to pay all of the decedent's debts. He orally promises Clark, one of Donna's creditors, that he will personally pay all of his mother's debts in full. Is Edgar's oral promise enforceable?

NO. Edgar's oral promise is not enforceable.

If the surety received consideration for his promise or that he might receive a slight and indirect advantage is this sufficient to bring the promise within the main purpose doctrine?

NO. It is insufficient to bring the promise within the main purpose doctrine.

Define The Suretyship Provision

Suretyship provision promise to pay the debts of another It applies to a contractual promise by a surety (promisor) to a creditor (promisee) to perform the duties or obligations of a third person (principal debtor) if the principal debtor does not perform. It MUST be evidenced by a writing (or have a sufficient electronic record) to be enforceable.

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning. c. Handwritten or typed terms are given greater weight than preprinted terms. d. All writings that are part of the same transaction are interpreted together.

Technical terms will always be given technical meaning and language that has a commonly accepted meaning is always interpreted in accordance with that meaning.

Are there any exceptions to the Suretyship provision? If so, what?

The "main purpose doctrine" or "leading object rule.". In cases in which the main purpose of the promisor is to obtain an economic benefit for herself that she did not previously have, then the promise comes within the exception and is outside the statute. The expected benefit to the surety "must be such as to justify the conclusion that his main purpose in making the promise is to advance his own interest."

What are the requirements that must be present in order to present multiple writings?

The latter requirement can be satisfied if (1) the writings are physically connected, (2) the writings refer to each other, or (3) an examination of the writings shows them to be in reference to each other.

What is the Parol Evidence Rule?

The negiotiations that were conducted previously of different offers, items...etc. By signing the agreement, despite its potential omissions, the parties have declared it to be their contract, and the terms as contained in it represent the contract they have made. As a rule of substantive law, neither party is later permitted to show that the contract they made is different from the terms and provisions that appear in the written agreement. This rule applies to wills and deeds. .

What is an example of a Collateral Promise (Suretyship)?

Thus, if a mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will," the promise is a suretyship and must be evidenced by a writing (or have a sufficient electronic record) to be enforceable. The mother does not promise to pay in any event; her promise is to pay only if the one primarily obligated, the son, defaults.

The use of promissory estoppel, however, to avoid the writing requirement of the statute of frauds has gained little acceptance in cases involving the sale of goods.

True

Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC differs. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party.

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor. b. A promise, the leading object of which is to obtain an economic benefit for oneself. c. A collateral promise where there are three parties and two contracts involved. d. A promise by an executor to pay the debts of the decedent from the executor's own funds.

A promise, the leading object of which is to obtain an economic benefit for oneself.

ABC, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. a. The confirmation fails to meet the UCC writing requirement, because it isn't signed. b. ABC can enforce the contract for 300 widgets, but not for 400 widgets. c. If ABC signs and returns the form, it will be able to sue for the extra 100 widgets later. d. The contract is enforceable for 400 widgets, because it has been partially performed.

ABC can enforce the contract for 300 widgets, but not for 400 widgets.

Define the Uniform Electronic Transactions Act (UETA)

Applies only to transactions between parties each of which has agreed to conduct transactions by electronic means. It gives full effect to electronic contracts, encouraging their widespread use, and develops a uniform legal framework for their implementation. UETA protects electronic signatures and contracts from being denied enforcement because of the statute of frauds

How does UETA give full legal effect to electronic contracts?

Section 7 of UETA accomplishes this by providing the following: -A record or signature may not be denied legal effect or enforceability solely because it is in electronic form. -A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation. -If a law requires a record to be in writing, an electronic record satisfies the law. -If a law requires a signature, an electronic signature satisfies the law.

What is the purpose of the Statute of Frauds?

To prevent fraud in the proof of certain oral contracts by perjured testimony in court. This purpose is accomplished by requiring certain contracts to be proved by a signed writing. The statute relates only to the proof or evidence of a contact. It has nothing to do with the circumstances surrounding the making of a contract or with the validity of a contact.

Which of the following would NOT require a writing under the statute of frauds? a. Where the buyer agrees to pay $10,000 for a piece of real estate. b. Where a renter agrees to rent a building for a five-year period. c. Where a contract enters into an agreement for an easement across adjoining land to run cables. d. Where a landscaper agrees to landscape the lot surrounding an office building.

Where a landscaper agrees to landscape the lot surrounding an office building.

Which of the following promises does have to be evidenced by a writing in order to be enforceable? a. Jack's agreement with Steve to sell his condominium for $150,000. b. Sarah's promise to work for Angie for ten months. c. Sam and Alicia decide to get married. d. Karen's agreement with Sandy to buy her sewing machine for $200.

The parol evidence rule is: a. another term for the exclusionary rule. b. a rule of construction. c. a rule of interpretation. d. a rule of substantive law.

a rule of substantive law.

Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2007, and that it is an integrated document. a. A letter dated July 9, 2007, reciting agreement to new delivery terms b. A chart showing the dates for delivery written on August 16, 2006 c. A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2007 contract d. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2003

a. A letter dated July 9, 2007, reciting agreement to new delivery terms

a. Jack's agreement with Steve to sell his condominium for $150,000.

Sherry owns an apartment building. Sherry and Robert orally agree that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. After one year, Robert seeks to rescind the rental agreement with Sherry on grounds that it did not comply with the Statute of Frauds. Will Robert be successful? a. No, both parties have fully performed under the oral contract. b. No, unless Robert invoked the proper provision of the statute of frauds. c. Yes, because this contract involved interest in land. d. None of these answers are correct.

a. No, both parties have fully performed under the oral contract.

Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC is the same. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may not recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

a. The basic legal effect under the statute of frauds and the UCC is the same.

Angelo borrows $2,000 from Maria. Maria electronically transfers Angelo the $2,000. Angelo promises to pay Maria the full amount in four $500 yearly installments of $500. Is such an agreement enforceable? a. Yes, because Maria has fully performed by making the loan. b. No, because the contract exceeds the one-year provision of the statute of frauds. c. No, because this involves the sale of goods. d. None of these answers are correct.

a. Yes, because Maria has fully performed by making the loan

Sherry owns an apartment building. Sherry and Robert agree that Robert will rent one of Sybil's apartments, beginning immediately, for a period of six months. Under the statute of frauds rule, does this lease need to be in writing to be enforceable? a. Yes, because it involves an interest in land. b. Yes, because it involves a promise to pay the debt of another. c. No, because it clearly will be performed within one year, if at all. d. No, because it does not involve an interest in land.

a. Yes, because it involves an interest in land.

Jayden, a U.S. citizen, contracts with a Canadian life insurance company for $100,000 dollars of coverage. The insurance company sends Jayden an e-mail, which Jayden signs, scans, and returns. Will a court entertain parol evidence on whether the parties intended for the policy to be valued in Canadian dollars or U.S. dollars? a. Yes, because the intent of the parties is uncertain. b. No, the court will look to the document to determine the parties' intent. c. No, because the parties should have been more specific about the currency issue and are stuck with what they have signed. d. Yes, because of the Foreign Corrupt Practices Act.

a. Yes, because the intent of the parties is uncertain.

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract. a. course of dealing b. usage of trade c. course of performance d. integrated document

a. course of dealing

In states that have adopted it, the UETA: a. encourages and gives full effect to electronic contracts. b. gives full effect to emergency transactions. c. supplements and covers all of the UCC. d. covers wills, codicils, and testamentary trusts.

a. encourages and gives full effect to electronic contracts.

In the Jenkins v. Eckerd Corporation case, the court ruled that: a. parol evidence was not admissible when a lease was an integrated agreement and complete in all essential terms. b. the existence of a merger or integration clause establishes per se that parol evidence will not be allowed. c. parol evidence was admissible even though the lease was clear and complete. d. the lower court should not have ruled that the lease was unambiguous.

a. parol evidence was not admissible when a lease was an integrated agreement and complete in all essential terms.

One issue before the court in Kalas v. Cook case was: a. whether an oral contract for sale of specially manufactured goods was sufficient under the UCC. b. whether this transaction fell under the laws of the UCC. c. whether Kalas should have sold the books to mitigate the amount owed in this case. d. whether $24,599.38 was a reasonable sum of money to charge for the books and pamphlets in question.

a. whether an oral contract for sale of specially manufactured goods was sufficient under the UCC.

Contracts for the sale of goods priced (starting) at _____ or more must ordinarily be in writing under UCC Section 2-201. a. $50 b. $500 c. $1500 d. $1,00

b. $500

Which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. A collateral promise made to the creditor b. A promise, the leading object of which is to obtain an economic benefit for oneself c. A collateral promise where there are three parties and two contracts involved d. A promise by an executor to pay the debts of the decedent from the executor's own funds

b. A promise, the leading object of which is to obtain an economic benefit for oneself

10. Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place or vocation or trade. a. course of dealing b. usage of trade c. course of performance d. integrated document

b. usage of trade

Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract. a. course of dealing b. usage of trade c. course of performance d. extrinsic set of evidence

course of dealing

Which of the following would NOT require a writing under the statute of frauds? a. Where the buyer of a five-acre lot pays the $40,000 purchase price, thus fully performing his obligation b. Where a renter agrees to rent a building for a 5-year period c. Where a contractor enters into an agreement for an easement across adjoining land to run cables d. Where a landscaper agrees to landscape the lot surrounding an office building

d. Where a landscaper agrees to landscape the lot surrounding an office building

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to satisfy the writing requirement? a. The price of the goods b. The quantity of the goods c. The signatures and names of the buyer and the seller d. The time and place for delivery

b. The quantity of the goods

In addition to those contracts specified in the original statute, most states require that other contracts be evidenced by a writing as well. These contracts INCLUDE:

-A contract to make a will. -To authorize an agent to sell real estate. -To pay a commission to a real estate broker. -contracts creating certain types of Security Interests be in WRITING. (Good example of this is Collateral)(Also, UCC Article 9 requires this. )

Examples of unenforceable oral contracts are: a. an oral promise to guarantee the additional duties of another. b. an oral agreement to substitute different land for that described in the original contract. c. an oral agreement to extend an employee's contract for six months to a total of two years. d. All of the above.

All of the above.

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because it is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

An oral statement such as this is not enforceable because it is within the statute of frauds.

Assume that Jack, Hal, and Sophia enter into a written contract for the sale of the restaurant, including the building and all of its contents. Jack orally tells Hal and Sophia that he wants to keep a certain a mounted fish that is hanging on the wall of the restaurant. The contract contains an integration clause. Jack later goes to get the fish, but Hal and Sophia claim that it was part of the sale. Jack sues. What is the likely result? A. Jack could likely rescind the entire contract if Hal and Sophia do not turn over the fish. B. Jack cannot bring in the evidence of the oral agreement because of the parol evidence rule. C. Jack will automatically win the case based on the parol evidence rule. D. Jack can bring in the evidence of the oral agreement because of the parol evidence rule.

B. Jack cannot bring in the evidence of the oral agreement because of the parol evidence rule.`

Assume that Jack, Hal, and Sophia orally agree on the sale of the restaurant for $1,000,000. The written contract incorrectly has the price term as $100,000. The contract contains an integration clause. Hal and Sophia pay $100,000, arguing that is what the contract states. Jack sues for $900,000. Which of the following is correct? A. Jack will be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because the price term is ambiguous. B. Jack will be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because of the typographical error. C. Jack will be able to bring in parol evidence of the oral terms because this is a fully integrated contract. D. Jack will not be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because of the typographical error.

B. Jack will be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because of the typographical error.

Which of the following promises in consideration of marriage would be outside the statute of frauds? a. In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. Camilo and Laura mutually promise to marry each other in a formal ceremony on June 23. d. Della promises to release a money judgment against Steven in consideration of his marrying her.

Camilo and Laura mutually promise to marry each other in a formal ceremony on June 23.

What are the kinds of contracts that are within the Statue of Frauds? (As most states have adopted it)

Compliance REQUIRES WRITING SIGNED by the party to be CHARGED (The party against whom the contract is to be enforced) 1. Promises to answer for the duty of another 2. Promises of an executor or administrator to answer personally for a duty of the decedent whose funds he is administering 3. Agreements upon consideration of marriage 4. Agreements for the transfer of an interest in land 5. Agreements not to be performed within one year A sixth type of contract within the original English statute of frauds applied to contracts for the sale of goods. The Uniform Commercial Code (UCC) now governs the enforceability of contracts of this kind

An executor personally promises to pay the debts of the decedent's widow. Under what circumstances would the creditor need to have a writing in order to enforce this promise? a. If the promise is made to the widow. b. If the promise is made to the creditor. c. If it is for the executor's economic benefit. d. The promise is an undertaking for the executor to become primarily liable.

If the promise is made to the creditor.

Which of the following promises does NOT have to be evidenced by a writing in order to be enforceable? a. Jones's agreement with Smith to sell his condominium for $100,000. b. Stewart's promise to work for Austin for a two-year period. c. Dad's promise to the credit union that he will make payments on his son's truck. d. Mindy's agreement with Susan to buy her bike for $400.

Mindy's agreement with Susan to buy her bike for $400.

Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force Champion to send the additional 100? a. No, because there is no consideration for the extra 100 shirts. b. No, because Barry does not have a writing signed by Champion Tee Shirts. c. Yes, because this is a subsequent modification of the original contract. d. Yes, because Champion Tee Shirts is a merchant within the meaning of Article 2 of the UCC.

No, because Barry does not have a writing signed by Champion Tee Shirts.

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements. b. Contemporaneous oral or written agreements. c. Subsequent oral or written agreements modifying the original agreement. d. Both (a) and (b).

Subsequent oral or written agreements modifying the original agreement.

What is another name for the main purpose doctrine? a. The collateral promise rule. b. The possibility test. c. The leading object rule. d. The suretyship provision.

The leading object rule.

What does the Statute of Frauds not prevent?

The performance of oral contracts if the parties are willing to perform.

Assume at the end of the meeting between Jack, Hal, and Sophia, they orally agree to enter into three separate contracts. One contract is for the sale of the intellectual property of the restaurant itself for $1,000,000. The second contract is for the sale of the building that the restaurant is located in for $250,000. The third contract is for the original sign that was outside the restaurant that Jack currently has in his garage, for $400. Which of these agreements violates the Statute of Frauds? A. The sale of the building and the sale of the intellectual property. B. All of the agreements violate the Statute of Frauds. C. The sale of the building only. D. The sale of the intellectual property and the sale of the sign.

The sale of the building only.

On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately? a. Yes, because the job offer is a collateral promise. b. Yes, because the job offer is covered by the parol evidence rule. c. Yes, because the job offer is for longer than one year from March 1. d. No, because the job offer is for one year from June 15.

Yes, because the job offer is for longer than one year from March 1.

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly. a. The order acceptance form fails to meet the writing requirement in the UCC, because it isn't signed. b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets. c. If Blevins signs and returns the form, it will be able to sue for the extra 100 widgets later. d. The contract is enforceable for 400 widgets, because it has been partially performed.

b. Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone order for a $600 heater. He doesn't recall placing the order. Which of the following is correct? a. Wyandott can hold Chris to the order. b. Chris can hold Wyandott to the order. c. Neither party is bound, because there is no signed writing. d. Chris is bound if he makes no objection within 10 days.

b. Chris can hold Wyandott to the order.

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100? a. No, because there is no consideration for the extra 100 shirts b. No, because Barry does not have a writing signed by Champs Tee Shirts c. Yes, because this is a subsequent modification of the original contract d. Yes, because Champs Tee Shirts is a merchant within the meaning of Article 2 of the UCC

b. No, because Barry does not have a writing signed by Champs Tee Shirts

Which of the following is untrue with regard to the interpretation of contracts? a. Express terms prevail over course of performance, and course of performance prevails over course of dealing. b. Technical terms will always be given technical meaning even where a different intent is manifested by the parties. c. Handwritten or typed terms are given greater weight than preprinted terms. d. All writings that are part of the same transaction are interpreted together.

b. Technical terms will always be given technical meaning even where a different intent is manifested by the parties.

Examples of an enforceable oral contract is/are: a. an oral promise by an executor to guarantee payment of a decedent's debt. b. an oral agreement to substitute the place of closing a land contract. c. an oral agreement to extend an employee's contract for six months to a total of two years. d. All of these are correct.

b. an oral agreement to substitute the place of closing a land contract.

On July 8, 2015, Mural, Inc. entered into a contract with Walls-R-Us Company. Under the contract, Mural, Inc. will provide technical support to Walls-R-Us from August 1, 2015 until August 31, 2018. Under the statute of frauds, this contract: a. requires a writing because the contract involves intangibles. b. does not require a writing because the agreement is for services, not goods. c. requires a writing because the contract cannot be performed within one year from August 1, 2015. d. does not require a writing because the term of the contract is one year.

b. does not require a writing because the agreement is for services, not goods.

When the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the __________ excludes prior oral or written negotiations or agreements of the parties? a. promissory estoppel rule b. parol evidence rule c. statute of frauds d. the possibility test

b. parol evidence rule

The customs and __________ or commercial activity to which the contract relates may be used to interpret the terms of a contract. a. course of dealing b. usage of trade c. course of performance d. extrinsic set of evidence

b. usage of trade

Which of the following is not a collateral promise? a. A mother tells the gas station to extend $1,000 worth of credit to her son over the school year and says, "If he doesn't pay, I will." b. Brett promises Denny's bank that if Denny cannot pay his bills, Brett will. c. A father tells Best Computer to deliver a laptop to his son and says, "Send me the bill. I'll pay for it." d. All of these are correct.

In Dahan v. Weiss, what did the court hold was insufficient to establish a complete agreement in this case? a. A failure to establish a signature. b. A failure to establish the sale of goods. c. A failure between the parties to express their full intentions of the agreement. d. A failure to show a writing.

c. A failure between the parties to express their full intentions of the agreement.

c. A father tells Best Computer to deliver a laptop to his son and says, "Send me the bill. I'll pay for it."

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct? a. The oral statement is enforceable because Paul is the administrator. b. An oral statement such as this is not enforceable because it is outside the statute of frauds. c. An oral statement such as this is not enforceable because this promise is within the statute of frauds. d. The oral statement is enforceable because it is a collateral promise.

c. An oral statement such as this is not enforceable because this promise is within the statute of frauds.

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the: a. UETA. b. UCC, Article 2E. c. Electronic Signatures in Global and National Commerce Act. d. Interstate and Foreign Commerce Electronic Transactions Act.

c. Electronic Signatures in Global and National Commerce Act.

Which of the following promises in consideration of marriage would be outside the statute of frauds? a. In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. c. John and Joan mutually promise to marry each other in a formal ceremony on June 23. d. Joan promises to release a money judgment against Steven in consideration of his marrying her.

c. John and Joan mutually promise to marry each other in a formal ceremony on June 23.

Sherry owns an apartment building. Sherry and Robert agree in writing that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. Outside of the written contract, Sherry orally promised Robert that the apartment would have wooden floors and not carpet. Shortly after moving in, Robert discovers that only the front entrance to the apartment has wooden floors, and the remainder of the apartment contains carpet. If Robert seeks to void the rental agreement with Sherry on the grounds that Sherry committed misrepresentation by telling him that the entire apartment had wooden floors. If Sherry invokes the parol evidence rule, will she be successful? a. Yes, the rental agreement was in writing and no parol evidence regarding wooden floors may be admitted. b. Yes, Robert should have requested the wooden floors in writing. c. No, because Robert is alleging misrepresentation. d. None of these answers are correct.

c. No, because Robert is alleging misrepresentation.

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement? a. Prior oral or written agreements b. Contemporaneous oral or written agreements c. Subsequent oral or written agreements modifying the original agreement d. Both (a) and (b).

c. Subsequent oral or written agreements modifying the original agreement

What is another name for the main purpose doctrine? a. The collateral promise rule b. The possibility test c. The leading object rule d. The suretyship provision

c. The leading object rule

The parol evidence rule does not apply to: a. a typographical error that obviously does not represent the agreement of the parties. b. evidence showing one of the parties to the contract lacks contractual capacity. c. The parol evidence rule does not apply to either (a) or (b). d. The parol evidence rule applies to both (a) and (b).

c. The parol evidence rule does not apply to either (a) or (b).

. Which of the following need NOT be contained in a memorandum, which satisfies the general statute of frauds writing requirement? a. The names of the parties to the contract b. The signature of the party being sued c. The signature of the party suing d. The subject matter and essential terms of the unperformed promises

c. The signature of the party suing

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. a. Parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months. b. Parol evidence cannot be used to explain the term, because it is an integrated document. c. The term "year" in the contract is ambiguous, and the parties can bring in parol evidence to clarify their intent. d. Parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

c. The term "year" in the contract is ambiguous, and the parties can bring in parol evidence to clarify their intent.

18. On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately? a. Yes, because the job offer is a collateral promise b. Yes, because the job offer is covered by the parol evidence rule c. Yes, because the job offer is for longer than one year from March 1 d. No, because the job offer is for one year from June 15

c. Yes, because the job offer is for longer than one year from March 1Yes, because the job offer is for longer than one year from March 1

When the __________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable. a. promisory estoppel b. probability c. main purpose d. parol evidenc

c. main purpose

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. Parol evidence: a. cannot be used to explain the term, because the plain meaning of a "year" is 12 months. b. cannot be used to explain the term, because the contract is an integrated document. c. can be used by the parties to clarify their intent because the term "year" in the contract is ambiguous. d. cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

can be used by the parties to clarify their intent because the term "year" in the contract is ambiguous

Under the UCC, __________ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection. a. course of dealing b. usage of trade c. course of performance d. integrated document

course of performance

16. Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of frauds? a. A typewritten name b. Handwritten initials c. A printed name d. All of the above meet the signature requirement.

d. All of the above meet the signature requirement.

5. E-Sign provides consumers must: a. evidence their consent on paper to conducting transactions with electronic records after being informed of the types of hardware and software required. b. receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records. c. receive a "clear and conspicuous" statement informing them of their right to have the record provided only in electronic form. d. All of the above.

d. All of the above.

Jan and Cindy enter into a contract unquestionably governed by the statute of frauds. The only evidence of the agreement is a letter Jan sent to Cindy confirming the deal. Which of the following may be a sufficient "signature" if Jan denies the enforceability of the contract in court? a. Jan's own, handwritten signature. b. Jan's stamped signature. c. Jan's initials. d. All of the above.

d. All of the above.

General contract provisions of a writing must: a. specify the parties to a contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or his agent. d. All of these are correct.

d. All of these are correct.

Parol evidence is admissible to show: a. fraud. b. duress. c. mistake. d. All of these are correct.

d. All of these are correct.

Which of the following would meet the signature requirement for a writing to satisfy the statute of frauds? a. Initials of both parties. b. An electronic signature. c. A printed name. d. All of these are correct.

d. All of these are correct.

Carlos orally agrees to sell his house to Andy for $50,000. Can Andy enforce this agreement in court? a. Carlos can enforce the sale of the land against Andy, but Andy cannot enforce the contract. b. Carlos must sell the real estate to Andy because of Andy's right to specific performance applicable to sales of real estate. c. Andy can enforce the agreement to sell the house because they did not use a realtor. d. Andy cannot enforce the agreement without a written contract signed by Carlos.

d. Andy cannot enforce the agreement without a written contract signed by Carlos.

In determining the meaning of a contract under the UCC, which of the following will have first priority? a. Course of performance b. Course of dealing c. Usage of trade d. Express terms

d. Express terms

13. Which of the following would not be subject to the writing requirements of Article 2 of the UCC? a. An unborn puppy whose mother is an AKC champion b. Trees that will be cut from a ten-acre tree farm c. Food served in the banquet room of a Florida resort d. Medical care received in a hospital

d. Medical care received in a hospital

Which of the following promises does not have to be evidenced by writing in order to be enforceable? a. Jones' agreement with Smith to sell his condominium for $100,000 b. Stewart's promise to work for Austin for a two-year period c. Dad's promise to the credit union that he will make payments on his son's truck if his son does not pay d. Mindy's agreement with Susan to buy her bike for $400

d. Mindy's agreement with Susan to buy her bike for $400

Amy is Tina's sister and executor of Tina's will. In administering Tina's estate, Amy recognizes that Tina's estate will not have enough funds to pay all of Tina's debts. Amy orally promises to pay Seth, one of Tina's creditors, that she will personally pay all of Tina's debts in full. Is such a promise enforceable? a. Yes, because Seth is one of Tina's creditors and deserves to be rightfully paid. b. None of these answers are correct. c. Yes, unless Tina promised to pay Seth before her death. d. No, such promises of an executor of a decedent's will falls under the statute of frauds.

d. No, such promises of an executor of a decedent's will falls under the statute of frauds.

Requirements for a memorandum that satisfies the statute of frauds include that the writing: a. must be a single document. b. must not contain an attachment. c. needs to be notarized. d. None of the above.

d. None of the above.

On March 1, Jimmy, a student, received a telephone call from Peterson, Inc. offering him a job for one year beginning on May 15, after completion of the school year. According to the personnel manager, he will have to move to Texas and be ready to start work at 9:00 a.m. on May 15. Should Jimmy ask for a letter confirming the telephone conversation if he accepts the offer immediately? a. Yes, because the job offer is a collateral promise. b. No, because the job offer is for one year from May 15. c. Yes, because the job offer is covered by the parol evidence rule. d. Yes, because the job offer is for longer than one year from March 1.

d. Yes, because the job offer is for longer than one year from March 1.

E-Sign: a. preempts the Uniform Electronic Transactions Act. b. requires persons to agree to use or accept electronic records or electronic signatures, provided they are informed of the types of hardware and software required and they have the required equipment. c. defines the included transactions narrowly. d. ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

d. ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

In determining the meaning of an ambiguous contract the court will: a. ignore the issue of who drafted the contract. b. treat the parties equally in terms of strict interpretation. c. interpret the contract strictly against the person who failed to draft it. d. interpret the contract strictly against the person who drafted it.

d. interpret the contract strictly against the person who drafted it.

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be enforceable? a. Contracts to make wills. b. Contracts for the sale of securities. c. Contracts for the sale of personal property for more than $5,000. d. Contracts creating certain types of security interests. e. All of the above.

e. All of the above.

In the Jenkins v. Eckerd Corporation case, the court held that: a. the trial court erroneously concluded that the lease unambiguously gave the lessee the option to cancel the lease. b. although the lease was unambiguous when read literally, the lease was not clear and complete with regard to the operation of the lease should the lease be assigned. Therefore, parol evidence should be admitted. c. extrinsic evidence could not be admitted because the lease was an integrated agreement complete in all essential terms and the lease contained no latent or patent ambiguity. d. the existence of a merger or integration clause establishes per se that a writing is totally integrated.

extrinsic evidence could not be admitted because the lease was an integrated agreement complete in all essential terms and the lease contained no latent or patent ambiguity.

What does the word Parol mean?

"Speech" or "words"

The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more. a. $50 b. $100 c. $500 d. $1,000

$500

Under the Restatement and the Code, a written contract may be explained or supplemented by:

(1) course of dealing between the parties; (2) usage of trade; (3) course of performance; or (4) evidence of consistent additional terms, unless the writing was intended by the parties to be a complete and exclusive statement of their agreement.

To protect consumers, E-Sign provides that they must consent electronically to conducting transactions with electronic records after being informed of the types of hardware and software required. Prior to consent, consumers must also receive a "clear and conspicuous" statement informing consumers of their right to

(1) have the record provided on paper or in nonelectronic form; (2) after consenting to electronic records, receive paper copies of the electronic record; and (3) withdraw consent to receiving electronic records.

What are the transactions which E-Sign specifically excludes?

(1) wills, codicils, and testamentary trusts; (2) adoptions, divorces, and other matters of family law; and (3) the UCC other than sales and leases of goods.

What does the Land Contract Provision NOT include?

-Contracts to transfer an interest in personal property. -Short-term leases, which by statute in most states are those for one year or less; -Contracts to build a building on a piece of land -Contracts to do work on the land -Contracts to insure a building

What are some examples of unenforcable oral contracts?

-an oral promise to guarantee the additional duties of another, -an oral agreement to substitute different land for that described in the original contract, and -an oral agreement to extend an employee's contract for six months to a total of two years.

What does the note, memorandum, or record, must show in order to be sufficient?

-specify the parties to the contract, -specify with reasonable certainty the subject matter and the essential terms of the unperformed promises, and -be signed by the party to be charged or by her agent.

What are the requirements of Promissory Estoppel?

-the availability of other remedies; -the foreseeability, reasonableness, and substantiality of the reliance; -and the extent to which reliance corroborates evidence of the promise.

The statute of frauds has relation to types of fraud practiced in the making of contracts

False

See Figure 15-1 for Parol Evidence Rule. Very important and shows what applies and what doesn't apply.

Figure 15-1

Contracts Within the Statute of Frauds: Agreements not to be performed within one year. What are the Exceptions?

Full performance by one party Possibility of performance within one year

The statute of frauds requires that all contracts that cannot be fully performed within one year of the making of the contract be in writing or in proper electronic form.

True

When does the year begin? When the agreement is made or when the performance is to begin?

When the agreement is made

How many parties and contracts are involved in a suretyship? Also, explain each.

3 Parties 2 Contracts The primary contract, between the principal debtor and the creditor, creates the indebtedness. The collateral contract is made by the third person (surety) directly with the creditor, whereby the surety promises to pay the debt to the creditor in case the principal debtor fails to do so.

Which of the following promises does not have to be evidenced by writing in order to be enforceable? a. Mindy's agreement with Susan to buy her bike for $400. b. Jones' agreement with Smith to sell his condominium for $100,000. c. Stewart's promise to work for Austin for a two-year period. d. Dad's promise to the credit union that he will make payments on his son's truck.

How does E-Sign define an Electronic Agent?

A computer program or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part without review or action or response.

What are the situations that the Parol Evidence Rule does not appy to?

A contract that is partly written and partly oral—that is, a contract in which the parties do not intend the writing to be their entire agreement. A clerical or typographical error that obviously does not represent the agreement of the parties. Where, for example, a written contract for the services of a skilled mining engineer provides that his rate of compensation is to be $8.00 per day, a court of equity would permit reformation (correction) of the contract to correct the mistake if both parties intended the rate to be $800 per day. The lack of contractual capacity of one of the parties through, for instance, minority, intoxication, or mental incompetency. Such evidence would not tend to vary, change, or alter any of the terms of the written agreement but rather would show that the written agreement was voidable or void. A defense of fraud, misrepresentation, duress, undue influence, mistake, illegality, lack of consideration, or other invalidating cause. Evidence establishing any of these defenses would not purport to vary, change, or alter any of the terms of the written agreement but rather would show such agreement to be voidable, void, or unenforceable. A condition precedent to which the parties agreed orally at the time of the execution of the written agreement and to which the entire agreement was made subject. Such evidence does not tend to vary, alter, or change any of the terms of the agreement; rather, it shows whether the entire unchanged written agreement ever became effective. A subsequent mutual rescission or modification of the written contract. Parol evidence of a later agreement does not tend to show that the integrated writing did not represent the contract between the parties at the time the writing was made. Parol evidence is admissible to explain ambiguous terms in the contract. To enforce a contract, it is necessary to understand its intended meaning. Nevertheless, such interpretation is not to alter, change, or vary the terms of the contract. A separate contract; the rule does not prevent a party from proving the existence of a separate, distinct contract between the same parties.

Which of the following is a collateral promise? a. A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will." b. Andrew promises Donald that if Donald cannot pay his bills, Andrew will. c. A father tells a merchant to deliver a computer to his daughter and says, "Send me the bill. I'll pay for it." d. All of the above.

A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."

Define a Executor (Similar to an Administrator)

A person appointed by a testator to carry out the directions and requests in his will and to dispose of the property according to his testamentary provisions after his decease. The female designation is executrix. A person appointed by the court in an intestacy situation is called the administrator(rix).

Define a Administrator (Similar to an Executor)

A person appointed by the court to manage the assets and liabilities of an intestate (a person dying without a will). A person named in the will of a testator (a person dying with a will) is called the executor. Female designations are administratrix and executrix.

Define Course of Dealing

A sequence of previous acts and conduct between the parties to a particular transaction which is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.

General contract law states that contracts that have to be in writing must: a. specify the parties to the contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or by his/her agent. d. All of the above.

All of the above

In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing? a. The goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture. b. A party admits in an answer to a complaint in a lawsuit that the contract was made. c. Delivery and acceptance of the goods has been made. d. All of the above.

All of the above

Which of the following would NOT meet the signature requirement for a writing to satisfy the Article 2 statute of frauds provision? a. A typewritten name. b. Handwritten initials. c. A printed name. d. All of the above meet the signature requirement.

All of the above meet the signature requirement.

E-Sign specifically excludes: a. wills, codicils, and testamentary trusts. b. divorces. c. UCC transactions other than sales and leases of goods. d. All of the above.

All of the above.

The parol evidence rule does NOT apply to: a. a typographical error that obviously does not represent the agreement of the parties. b. evidence showing one of the parties to the contract lacks contractual capacity. c. All of the above. d. None of the above.

All of the above.

What does the Land Contract Provision include?

All promises to: -To transfer -To Buy -To pay for an interest in land (Including ownership interests, leases, mortgages, options, and easements)

What is the only contract that the Parol Evidence Rule applies?

An Integrated Contract

Define Electronic Signatures in Global and National Commerce (E-Sign)

An act very similar to UETA, which makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Define Restitution

An equitable remedy under which a person who has rendered services to another seeks to be reimbursed for the costs of his acts (but not his profits) even though there was never a contract between the parties.

Define Usage of Trade

Any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question.

Define an Interest In Land

Any right, privilege, power, or immunity in real property.

Define Promissory Estoppel

Arises where there is a promise which promisor should reasonably expect to induce action or forbearance on part of promisee and which does induce such action or forbearance, and where injustice can be avoided only by enforcement of the promise.

How does the Code define Goods?

As moveable personal property.

Contracts for the sale of goods priced (starting) at _____ or more must ordinarily be in writing under UCC Section 2-201. a. $50 b. $500 c. $1500 d. $1,000

In which of the following cases would an oral contract be enforceable without a written memorandum? Choose the best answer. a. Ron, who is 6 feet tall and weighs 185 pounds, orders three custom-made suits. b. Michelle calls an employment agency in Paris to arrange for maid service for her three-month Parisian vacation. c. Anna orders a top-of-the-line computer over the phone. d. Catherine calls Lucky Dude Ranch to purchase the championship race horse it has advertised in the paper.

Which of the following is not true with regard to the interpretation of contracts? a. Handwritten or typed terms are given greater weight than printed terms. b. All writings that are part of the same transaction are interpreted together. c. The person who drafts the contract has the right, supported by case law, to interpret the contract against the other party. d. Technical terms will always be given technical meaning even where one party to the contract is ignorant of the technical meaning.

Define Integrated Contact

Complete and total agreement. one contained in a certain writing or writings to which the parties have assented as being the statement of the complete and exclusive agreement or contract between them.

Define Course of Performance

Conduct between the parties concerning performance of the particular contract. refers to the manner in which and the extent to which the respective parties to a contract have accepted without objection successive tenders of performance by the other party.

Parol evidence is admissible to show: a. fraud. b. duress. c. mistake. d. All of these are correct.

Suppose that a supply company has refused to furnish materials on the credit of a building contractor. Faced with a possible slowdown in the construction of his building, the owner of the land promises the supplier that if the supplier will extend credit to the contractor, the owner will pay if the contractor does not. Here, the purpose of the promisor was to serve an economic interest of his own, even though the performance of the promise would discharge the duty of another. The intent to benefit the contractor was at most incidental, and courts will........

Enforce oral promises of this type.

D owes a debt to C. S promises D to pay D's debt. Because the promise of S was made to the debtor (D), not the creditor (C), the promise is ________ even if it is oral

Enforceable

an oral agreement to modify an employee's contract from two years to six months at a higher salary is not within the statute of frauds and is _____________

Enforceable

an oral modification of a prior contract is ____________ if the new contract is not within the statute of frauds.

Enforceable

Liz orally agrees to buy one thousand watches from David for $15,000. David delivers three hundred watches to Liz, who receives and accepts the watches. The oral contract is ___________.

Enforceable to the extent of three hundred watches ($4,500)—those received and accepted but is unenforceable to the extent of seven hundred watches ($10,500).

Jane borrows $4,800 from Tom. Jane orally promises to pay Tom $4,800 in three annual installments of $1,600. Jane's promise is ___________.

Enforceable. Jane's promise is enforceable, despite the one-year provision, because Tom has fully performed by making the loan.

An oral contract for the transfer of an interest in land may be ________ if the party seeking enforcement has so changed his position in reasonable reliance on the contract that a court can prevent injustice only by enforcing the contract.

Enforced (Quasi Contract, Double Check) In applying this part performance exception, many states require that the transferee has paid a portion or all of the purchase price and either has taken possession of the real estate or has started to make valuable improvements on the land. Payment of part or all of the price is not sufficient in itself to make the contract enforceable under this exception

Define the Executor-Administrator Provision

Executor-administrator provision applies to promises to answer personally for a duty of the decedent It applies to the promises of an executor of a decedent's will, or to those of the administrator of the estate if there is no will, to answer personally for a duty of the decedent.

In determining the meaning of a contract under the UCC, which of the following will have first priority? a. Course of performance. b. Course of dealing. c. Usage of trade. d. Express terms.

Express terms.

An oral contract modifying a previously existing contract is enforceable even if the resulting contract is within the statute of frauds. True False

False

If a law requires a signature, it must be handwritten and not an electronic form of signature. True False

False

Many more types of contracts are subject to the statute of frauds than are not subject to it. True False

False

The marriage provision of the statute of frauds applies to mutual promises of marriage as well as promises in consideration of marriage. True False

False

The parol evidence rule allows for the inclusion of prior oral or written negotiations or agreements that may vary or change an integrated written contract. True False

False

The phrase "usage of trade" applies to supplemental evidence of previous conduct between the parties. True False

False

Does the executor-administrator provision apply to promises to pay debts of the deceased out of assets of the estate.

NO. The executor-administrator provision is thus a specific application of the suretyship provision. Accordingly, the exceptions to the suretyship provision also apply to this provision.

Does the Suretyship Provision include promises made to a debtor?

NO. The suretyship provision has been interpreted not to include promises made to a debtor.

Can an oral contract to employ another person for thirteen months be enforceable (Under the Statute of Frauds)?

NO. This contract could not possibly be performed within a year and is therefore unenforceable.

Does a contract for the sale of securities need to be in writing to be enforceable. ie does it apply to Statute of Frauds.

No, UCC Revised Article 8, which all states have adopted, provides that the Stature of Frauds does not apply to contracts for the sale of securities.

Contracts Within the Statute of Frauds: Agreements for the transfer of an interest in land. What are the Exceptions?

Part performance plus detrimental reliance Seller conveys property

Define Original Promise. Does it apply to the Statute of Frauds?

Promise to become primarily liable. If the promisor makes an original promise by undertaking to become primarily liable, then the statute of frauds does not apply.

Define Statute of Frauds

Requires that certain designated types of contracts be evidenced by a writing to be enforceable. A celebrated English statute, passed in 1677, which has been adopted, in a more or less modified form, in nearly all of the United States. Its chief characteristic is the provision that no action shall be brought on certain contracts unless there be a note or memorandum thereof in writing, signed by the party to be charged or by his authorized agent.

A party may implicitly admit the existence of a contract. Some courts now apply this exception to other statute of frauds provisions.

True

After all the promises of an oral contract have been performed by all the parties, the statute of frauds no longer applies. neither party may ask the court to rescind the executed oral contract on the basis that it did not meet the statute's requirements. Thus, the statute applies to executory contracts only.

True

All promises to transfer, buy, or pay for an interest in land, including ownership interests, leases, mortgages, options, and easements, are within the Land Contract Provision

True

An executor or administrator is a person appointed by a court to carry out, subject to order of court, the administration of the estate of a deceased person.

True

An oral promise by a purchaser is also enforceable if the seller fully performs by conveying the property to the purchaser.

True

An oral rescission is effective and discharges all unperformed duties under the original contract.

True

As with general contracts, several related documents may satisfy the writing requirement. Moreover, the "signature" may be by initials or even typewritten or printed, so long as the party intended to authenticate the writing or record.

True

Brown Co. and ANM Industries enter into an oral contract that provides that ANM will deliver twelve thousand shirts to Brown at $6.00 per shirt. Brown sends a letter to ANM acknowledging the agreement. The letter is signed by Brown's president, contains the quantity term but not the price, and is mailed to ANM's vice president for sales. Brown is bound by the contract once its authorized agent signs the letter, while ANM cannot raise the defense of the statute of frauds ten days after receiving the letter if it does not object within that time.

True

E-Sign does not generally preempy UETA.

True

Even a contract within the statute of frauds will be enforced if it is contained in a writing, memorandum, or record sufficient to satisfy the statute's requirements. As long as the writing or record meets those requirements, it need not be in any specific form, nor be an attempt by the parties to enter into a binding contract, nor represent their entire agreement.

True

If an executor or administrator promises to answer personally for a duty of the decedent, the promise is unenforceable unless it is in writing or in proper electronic form.

True

If the will of a decedent nominates a certain person as executor, the court usually appoints that person.

True

Jones and Brown enter into a written contract of employment for a two-year term. Later they orally agree to rescind the contract. The oral agreement is effective, and the written contract is rescinded. Where land has been transferred, however, an agreement to rescind the transaction is a contract to retransfer the land and is within the statute of frauds.

True

Lenny enters into an oral contract to sell land to Elaine, and Elaine pays a portion of the price as a down payment. Lenny subsequently repudiates the oral contract. Elaine may recover in restitution the portion of the price she paid.

True

Matthew makes an oral contract to furnish services to Rachel that are not to be performed within a year and Rachel discharges Matthew after three months, Matthew may recover in restitution the value of the services rendered during the three months.

True

Most oral contracts, as previously indicated, are as enforceable and valid as written contracts.

True

Oral contracts modifying previously existing contracts are unenforceable if the resulting contract is within the statute of frauds.

True

The Code permits an oral contract for the sale of goods to be enforced against a party who, in his pleading, testimony, or otherwise, admits in court that a contract was made; but the Code limits enforcement to the quantity of goods he admits.

True

The Code permits enforcement of an oral contract for goods specially manufactured for a buyer, but only if evidence indicates that the goods were made for the buyer and the seller can show that he has made a substantial beginning of their manufacture before receiving any notice of repudiation. If the goods, although manufactured on special order, may be readily resold in the ordinary course of the seller's business, this exception does not apply.

True

The English statute of frauds, which applied to contracts for the sale of goods, has been used as a prototype for the UCC, Article 2, statute of frauds provision.

True

The Restatement and the Code permit supplemental consistent evidence to be introduced into a court proceeding. Such evidence, however, is admissible only if it does not contradict a term or terms of the original agreement and probably would not have been included in the original contract.

True

The Restatement defines interpretation as the ascertainment of the meaning of a promise or agreement or of a term of the promise or agreement.

True

The memorandum may be such that the parties themselves view it as having no legal significance whatever.

True

The parol evidence rule, in spite of its name, is not an exclusionary rule of evidence; nor is it a rule of construction or interpretation. Rather, it is a rule of substantive law that defines the limits of a contract.

True

The various provisions of the statute of frauds apply independently. Accordingly, a contract for the sale of an interest in land also may be a contract in consideration of marriage, a contract not to be performed in one year, and a contract for the sale of goods.

True

The year runs from the time the agreement is made, not from the time when the performance is to begin.

True

To determine whether a contract falls within the one-year provision, the courts ask whether it is possible for the performance of the contract to be completed within a year. Under the majority rule, the possibility test does not ask whether the agreement is likely to be performed within one year from the date it was formed; nor does it ask whether the parties think that performance will occur within the year. The enforceability of the contract depends not on probabilities or on actual subsequent events but on whether the terms of the contract make it possible for performance to occur within one year.

True

Under both the statute of frauds and the Code, the basic legal effect is the same: a contracting party has a defense to an action by the other party for enforcement of an unenforceable oral contract—that is, an oral contract that falls within the statute and does not comply with its requirements.

True

Under the Code, delivery and acceptance of part of the goods, or payment and acceptance of part of the price, validate the contract, but only for the goods that have been accepted or for which payment has been accepted.

True

We may observe that through the application of the parol evidence rule (where properly applicable) and the previous rules of interpretation and construction, the law not only enforces a contract but also, in so doing, exercises great care both that the contract being enforced is the one the parties made and that the sense and meaning of the parties' intentions are carefully ascertained and given effect.

True

When the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the parol evidence rule excludes prior oral or written negotiations or agreements of the parties or their contemporaneous oral agreements that vary or change an integrated written contract.

True

Where a contract has been fully performed by one party, most courts hold that the promise of the other party is enforceable even though by its terms its performance was not possible within one year.

True

a written agreement cannot be contradicted by evidence of a prior agreement or of a contemporaneous agreement, under the Restatement and the Code

True

an oral modification of a prior contract is enforceable if the new contract is not within the statute of frauds.

True

between merchants, if one party, within a reasonable time after entering into the oral contract, sends a written confirmation of the contract for a sale of goods to the other party and the written confirmation is sufficient against the sender, it is also sufficient against the recipient of the confirmation unless the recipient gives written notice of his objection within ten days after receiving the confirmation. This means that if these requirements have been met, the recipient of the writing or record is in the same position he would have assumed by signing it, and the confirmation, therefore, is enforceable against him.

True

A party to a contract that is unenforceable because of the statute of frauds may have, nonetheless, acted in reliance upon the contract. In such a case, the party may recover in restitution the benefits he conferred upon the other in relying upon the unenforceable contract.

True. However, Most courts require that the party seeking restitution not be in default.

Define a Collateral Promise?

Undertaking to be secondarily liable, that is, liable if the principal debtor does not perform. The factual situation can be reduced to the simple idea that "If X doesn't pay, I will. (in that the promisor is not primarily liable)

Oral contracts modifying previously existing contracts are __________if the resulting contract is within the statute of frauds.

Unenforceable

if Kirkland, a painter, and Riggsbee, a homeowner, make an oral contract under which Riggsbee is to give Kirkland a certain tract of land in return for the painting of Riggsbee's house, the contract is ____________ under the statute of frauds

Unenforceable It is a contract for the sale of an interest in land. Either party can repudiate and has a defense to an action by the other to enforce the contract.

The sale of goods for the price of $500 or more is ___________

Unenforceable unless there is some writing or record sufficient to indicate that a contract for sale has been made between the parties

If a contract for a year's performance that is to begin three days after the date of the making of the contract it is __________

Within the statute and, if oral, is unenforceable.

To perform its function of interpreting and construing written contracts and documents, the court adopts rules of interpretation to apply a legal standard to the words contained in the agreement. These are among the rules that aid interpretation:

Words and other conduct are interpreted in the light of all the circumstances, and if the principal purpose of the parties is ascertainable, it is given great weight. A writing is interpreted as a whole, and all writings that are part of the same transaction are interpreted together. Unless the parties manifest a different intention, language that has a commonly accepted meaning is interpreted in accordance with that meaning. Unless a different intention is manifested, technical terms and words of art are given their technical meanings. Wherever reasonable, the parties' manifestations of intention regarding a promise or agreement are interpreted as consistent with each other and with any relevant course of performance, course of dealing, or usage of trade. An interpretation that gives a reasonable, lawful, and effective meaning to all the terms is preferred over an interpretation that leaves a part unreasonable, unlawful, or of no effect. Specific and exact terms are given greater weight than general language. Separately negotiated or added terms are given greater weight than standardized terms or other terms not separately negotiated. Express terms, course of performance, course of dealing, and usage of trade are weighted in that order. Where a term or promise has several possible meanings, it will be interpreted against the party who supplied the contract or the term. Where written provisions are inconsistent with typed or printed provisions, the written provision is given preference. Likewise, typed provisions are given preference to printed provisions. If the amount payable is set forth in both figures and words and the amounts differ, the words control the figures.

Can the memorandum consist of several papers or documents even if none would be sufficient by itself?

YES, The papers must however satisfy the latter requirements. The latter requirement can be satisfied if (1) the writings are physically connected, (2) the writings refer to each other, or (3) an examination of the writings shows them to be in reference to each other.

Adams's promise to convey title to a certain farm to Barnes if Barnes accepts Adams's proposal of marriage. Is this provision cover the Marriage Provision?

YES.

Can a Original Promise be made oral?

Yes

Can a personal letter between the parties serve as a memorandum?

Yes

Can an advertisement serve as a memorandum?

Yes

Can interdepartmental communication serve as a memorandum?

Yes

Can the record books of a business serve as a memorandum?

Yes

Does a contract for the sale of other personal property for more than $5,000 need to be in writing to be enforceable. ie does it apply to Statute of Frauds.

Yes, Article 1 of the UCC requires that contracts for the sale of other personal property for more than $5,000 be in writing.

Can a Contract be formed by the interaction of electronic agents of the parties, even if no individual was aware of or reviewed the electronic agents?

Yes, Section 14 of UETA further validates contracts formed by machines functioning as electronic agents for parties to a transaction. HOWEVER, The Act excludes from its coverage wills, codicils, and testamentary trusts as well as all Articles of the UCC except Articles 2 and 2A.

Does UETA and E-Sign ensure that Internet and e-mail agreements will not be unenforceable because of the statute of frauds? If so, how?

Yes, by providing that 1. a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and 2. a contract relating to such transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation.

or a sale of goods, the Code requires...

a writing or record (1) sufficient to indicate that a contract has been made between the parties, (2) signed by the party against whom enforcement is sought or by her authorized agent or broker, and (3) specifying the quantity of goods or securities to be sold. The writing or record is sufficient even if it omits or incorrectly states an agreed-upon term; however, if the quantity term is misstated, the contract can be enforced only to the extent of the quantity stated in the writing or record.

What does the term Parol Evidence refer to?

any evidence, whether oral or in writing, that is outside the written contract and not incorporated into it either directly or by reference.

How does E-Sign define an electronic record?

as "a contract or other record created, generated, sent, communicated, received, or stored by electronic means."

How does E-Sign define an electronic signature?

as "an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record."

9. Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection. a. course of dealing b. usage of trade c. course of performance d. integrated document

c. course of performance

What is the reason for the Parol Evidence Rule?

is that the parties, by reducing their entire agreement to writing, are regarded as having intended the writing that they signed to include the whole of their agreement. The terms and provisions contained in the writing are there because the parties intended them to be in their contract. Conversely, the courts regard the parties as having omitted intentionally any provision not in the writing. The rule, by excluding evidence that would tend to change, alter, vary, or modify the terms of the written agreement, safeguards the contract as made by the parties.

Under the UCC, a(n) __________ is a practice or method of dealing regularly observed and followed in a place or vocation or trade. a. course of dealing b. usage of trade c. course of performance d. integrated document

Blaw Chapter 15, Business Law Chapter 15 3

Kaugnay na mga set ng pag-aaral

AP European History review: Chapter 8

Chapter 5 - Share Capital and Retained Earnings

MGMT 5320 Ch 10 Summary

67%.CISA Second Pass Quiz.Protection of Information Assets

General Life Insurance Concept and Principles

Pharm Chapter 14: Nutritional Support

Chapter 4

Ch. 24 - Debt Financing

algebra 2a - unit 6: radical equations

ALC Book 7 Lesson 1

Biology Chapter 4

psych practice quiz chapter 9 learning

Article 210 ( branch circuits)

Microeconomics chapter 6-12 test review

MGA Exam 3 Part 2

cs dsa

History

APCSP Mock Exam Flash Cards

Hull

Ch.17 Test