Business Law Chapter 13 Statue of Frauds
assignment-in-time
The first-______ rule states that the first party granted the assignment is the party correctly entitled to the contractual right.
Prenuptial Agreement
An agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property. To be enforceable, the agreement must be in writing.
assignor; assignee
An assignment occurs when a party to a contract, the ______, transfers his or her rights to the contract to a third party, the ______.
Partial Performance
An exception to the statue 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.
admission
A(n) ______ is a statement made in court, under oath, 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.
Merger
A(n) ______ clause is a clause parties include in a written agreement within the statute of frauds stating that the written agreement accurately reflects the final, complete version of the agreement.
Uniform Commercial Code
According to the ______, parol evidence is admissible for the sake of clarification if the evidence addresses prior dealings between the parties or usages of trade in the same business as the parties' field.
the day after the contract is created.
According to the statute of frauds, contracts whose performance cannot possibly occur within one year must be in writing. The one-year period begins to run...
esstopel
Promissory ______ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
Intended beneficiary
A third party to a contract whom the contracting parties intended to benefit directly from their contract.
Integrated Contract
A written contract intended to be the complete and final representation of the parties' agreement.
one year
Contracts whose performance, based on the terms of the contract, cannot possibly occur within ______ fall within the statute of frauds and therefore must be in writing.
Rights for a bank to sell a mortgage instrument to another bank.
Contractual rights that cannot be assigned include all but which of the following?
Rights to receive money
Contractual rights that cannot be assigned include all but which of the following?
Condition Precedent
In a contract, an event that must occur for a party's duty to arise.
secondary
A(n) ______ obligation arises when a party outside a primary agreement promises to fulfill the primary debtor's obligations if the primary debtor fails to fulfill his or her obligation.
Admission
A statement made in court, under oath, 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.
Terms other than quantity must be exact and included in the written contracts.
According to the Uniform Commercial Code (UCC), Section 2-201, which of the following is an incorrect statement about contracts for the sale of goods priced at $500 or more?
An oral contract for customized goods
According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?
an oral contract between merchants.
According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?
Which of the following is NOT a specific type of contract that falls within the statute of frauds?
a contract for the sale of goods valued at less than $500
Delegation
A contracting party's transfer of his or her duty to perform to a third party who is not part of the original contract.
Assignment
A contracting party's transfer of his or her rights to a contract to a third party.
Obligor
A contractual party who agreed to do something for the other party.
Obligee
A contractual party who agreed to receive something from the other party.
Delegator
A party in contract who transfers his or her duties to perform to a third party who is not apart of the original contract.
Equal dignity rule
A rule requiring that contracts that would normally fall under the statue of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.
English Rule
A rule that states that the first assignee to give notice of assignment to the obligator is the party with rights to the contract.
First-assignment-in-time rule
A rule that states that the first party granted the assignment is the party correctly entitled to the contractual right.
precedent
When an entire contract is conditioned on something occurring first, that first thing is known as a condition...
privity
Contracts are typically private agreements, in the sense that the focus of the contract is the two parties involved and no one else. The two parties are said to be in ______ of contract.
obligor
Attorney Jack Highlander agrees to represent Charity Vance in a divorce proceeding next month. In this specific context, Highlander is a(n) ______ under the contract.
Which of the following is an accurate statement regarding primary obligations and the statute of frauds?
Primary obligations are not within the statute of frauds and therefore need not be in writing to be enforceable.
Statue of Frauds
State-level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statue; serves to protect promisors from poorly considered oral contracts by requiring certain contracts to be in writing.
antiassignment
When parties include a(n) ______ clause in their contract, the parties are attempting to limit their ability to assign their rights under the contract.
Laws do not currently recognize any exceptions to the enforceability of an antiassignment clause in a contract.
Which of the following is an incorrect statement regarding whether an assignment can be made despite an antiassignment clause in a contract?
contracts that are represented to be the full and final agreement of the parties
Which of the following is not a recognized exception to the parol evidence rule?
contracts with a merger clause
Which of the following is not a recognized exception to the parol evidence rule?
contracts with a merger clause.
Which of the following is not a recognized exception to the parol evidence rule?
Nonperformance
Which of the following is not a recognized exception to the statute of frauds?
nonperformance
Which of the following is not a recognized exception to the statute of frauds?
The United States Constitution expressly protects and preserves the ability to assign a right to payment.
Which of the following is not a recognized reason why, even when a contract has an antiassignment clause, either party may still assign his or her right to receive payment?
the signature of both parties at the end of the contract.
Which of the following is not a writing element required by the statute of frauds?
primary
______ obligations are debts entered into in an initial contract.
Which of the following is NOT one of the main purposes of the statute of frauds?
to promote the notion that a person's word is his or her "bond"
prenuptial
A ______ agreement is a contract entered into by two parties before marriage that clearly states the ownership rights each party enjoys in the other party's property.
Merger Clause
A clause in a written agreement within the statue of frauds that states that the written agreement accurately reflects the final, complete version of the agreement.
Parol Evidence Rule
A common law rule that states that oral evidence of an agreement made prior to or comtemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
Third-Party beneficiary contract
A contract created when two parties enter into a contract agreement with the intended purpose of benefiting a third party.
Donne Beneficiary
A third party who benefits from a contract in which a promisor agrees to give a gift to the third party.
Creditor Beneficiary
A third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.
Delegatee
A third party who is not a part of the original contract but to whom duties to perform are transferred by one of the contracting parties.
Assignee
In a contract, the party who receives the rights of another party to collect what was contractually agreed on in the original contract.
Assignor
In a contract, the party who transfers his or her rights to a contract to a third party.
Promisor
In a third party beneficiary contract, the party to the contract who made the promise that benefits the third party.
Promisee
In a third party beneficiary contract, the party to the contract who owes something in exchange for the promise made to the third party.
Incidental Beneficiary
One who unintentionally gains a benefit from a contract between other parties.
secondary promises, collateral promises, or suretyship promises.
The contracts involving promises to pay a debt that are within the statute of frauds are of a very limited kind. These promises are referred to as...
Promissory Estoppel
The legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
Vest
To mature, as in the, maturation of rights that allow a party to act legally on the rights.
partial
Under ______ performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and has begun to improve the land permanently, the course will consider such actions proof of the contract.
equal dignity rule
Under the ______, contracts that 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.
the tractors used on the land.
Under the statute of frauds, which of the following parts of a land is not considered real property?
2-201
Uniform Commercial Code Section, ______ requires a contract for the sale of goods priced at $500 or more to be in writing to be enforceable.
frauds
Various exceptions to the statute of ______ include admission, partial performance, and promissory estoppel.
When a contract is fundamentally flawed in missing critical information, courts can allow parol evidence to provide the missing information.
Which of the following is a correct statement regarding the relationship between the parol evidence rule and incomplete contracts?
It reduces the court's guesswork in determining whether the written agreement was in fact intended to be the final statement of an agreement.
Which of the following is a distinct advantage of a merger clause?
to prevent parties from entering into contracts with which they do not agree.
Which of the following is a recognized purpose of the statute of frauds?
a contract related to an interest in land.
Which of the following is a specific type of contract that falls within the statute of frauds?
A secondary obligation is within the statute of frauds and therefore must be in writing to be enforceable.
Which of the following is an accurate statement regarding secondary obligations and the statute of frauds?
Evidence of a condition precedent agreed to orally is admissible because the contract is not modified by such evidence.
Which of the following is an accurate statement regarding the applicability of the parol evidence rule to evidence of a condition precedent?
To be enforceable, a prenuptial agreement must be in writing.
Which of the following is an accurate statement regarding the enforceability of a prenuptial agreement?
If worded improperly or ambiguously, an antiassignment clause does not effectively limit an assignment.
Which of the following is an accurate statement regarding the enforceability of an antiassignment clause?
Evidence of a written contract's subsequent modification is admissible if it was made after the contract and if it clearly indicates the modification.
Which of the following is an accurate statement regarding the relationship between the parol evidence rule and the subsequent modification of an existing, written contract?
Courts allow parol evidence to demonstrate that a contract is void or voidable.
Which of the following is an accurate statement regarding the relationship between the parol evidence rule and void or voidable contracts?
When a contract consists of both written and oral elements, judges tend to treat the agreement as finalized.
Which of the following is an incorrect statement regarding the applicability of the parol evidence rule to a nonfinalized, partially written and partially oral, contract?
When a contract contains ambiguous terms, the court allows only written evidence to be introduced to clarify the ambiguous terms.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts containing ambiguous terms?
A written agreement is fundamentally altered by allowing parol evidence to correct a typo.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts with serious and obvious typographical errors?
The parol evidence rule prohibits the admissibility of evidence of prior dealings or usage of trade.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and evidence of prior dealings or usage of trade?
Allowing evidence that proves a contract is void or voidable violates the parol evidence rule.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and void or voidable contracts?
If the contract's terms require modifications to be in writing, oral modifications are nevertheless admissible.
Which of the following is an incorrect statement regarding the subsequent modification of an existing, written contract?
Louisiana
Which of the following states does not adhere to the admission exception of the statute of frauds?
Secondary; collateral
______ promises, ______ promises, and suretyship promises refer to agreements in which a third party agrees to pay the debt owed by another party if that other party fails to pay his or her debt.
According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?
an oral contract between merchants.
