BLaw Ch 15

b

Alfie is president and sole shareholder of EntertainME, Inc. EntertainME, Inc. wishes to borrow money, but to do so, the bank requires Alfie to orally agree to pay the debt of the corporation if EntertainME, Inc. cannot. Alfie's guarantee to repay is: a. unenforceable because it is a collateral promise. b. enforceable because of the leading object rule. c. enforceable under the parol evidence rule. d. enforceable because there is an insurable interest.

c

Ally Hockson has been trying to purchase Frank Cappel's antique desk for some time, but Frank has been reluctant to sell. One evening Frank said to Ally, "Okay, I'll sell the desk for $550." Ally replied, "Thank you, Frank. I accept." The agreement was not reduced to writing, but Frank and Ally did shake hands. Two days later, Ally sent Frank a letter outlining the terms of the agreement, and stating that she would deliver $550 cash according to the agreement within ten days. The letter was signed, "Best regards, Ally." Later, Ally had second thoughts, and refused to go through with the purchase. Nothing had been exchanged at this point. Frank: a. can enforce the contract because they shook hands on the agreement. b. cannot enforce the contract against Ally because he did not sign the letter. c. can enforce the contract against Ally because the statute of frauds is satisfied under this situation. d. cannot enforce the contract against Ally because her signature was inadequate without her last name under the statute of frauds

a

An oral contract may be enforceable, even without a written memorandum, if: a. All of these answers. b. the goods have been delivered or paid for. c. the seller is specially manufacturing the goods for the buyer. d. the defendant admits in court proceedings that there was a contract

a

Brad and Alvin, both merchants, orally agree to a contract for the sale of $5000 of accessories. Alvin, the buyer, sends to Brad, the seller, a written confirmation of the sale, which is sufficient against Alvin under the statute of frauds and which Alvin signs. Brad fails to perform the contract and does not ship out the goods. Alvin sues. This contract is: a. enforceable even without Brad's signature because both parties are merchants. b. enforceable, because Alvin sent the written confirmation of the sale, thereby partially performing the contract. c. unenforceable, because Brad did not sign any contract. d. unenforceable, because Alvin did not pay for the goods

c

Court agrees to transfer an easement right to Madison for $2,000. This contract is within the statute of frauds and therefore: a. is automatically binding. b. is illegal. c. needs to be in writing to be enforceable. d. is automatically void.

d

Damian agrees to lease his house to Irvin for nine months, the lease to begin six months from the signing of the contract. Under the statute of frauds: a. the lease is a collateral promise which must be in writing. b. the parol evidence rule renders the lease voidable. c. the lease is not required to be in writing. d. the lease is required to be in writing because of the one-year rule.

b

Deb, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Deb should: a. return the goods within two weeks of their delivery with a note attached saying she will not pay for the goods. b. object to the confirmation in writing within 10 days. c. ignore the confirmation. d. call the seller and object to the confirmation as soon as she gets back from her two-week vacation.

b

Devry, Inc. and Glascow Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Devry delivered the sweaters and Glascow accepted and paid for them. Since the contract is fully executed: a. None of these answers. b. it makes no difference that it was oral. c. both parties have committed fraud. d. it becomes void, because oral agreements are unenforceable.

d

Dirk and Allan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Dirk wrote the following on a napkin: " Allan agrees to purchase from Dirk a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2008." Allan signed the napkin. On May 1, 2008, Dirk was ready to close the deal and transfer title but Allan refused to pay the purchase price. If Dirk sues Allan for the price of the land, the most likely result will be: a. Dirk will win because the statute of frauds does not apply to this situation. b. Allan will win because Dirk did not sign the writing. c. Allan will win because the writing is not sufficient under the statute of frauds. d. Dirk will win because the writing is sufficient under the statute of frauds

b

Edith's Exercise World plans to order three weight machines from Patrick's Push, Pedal and Pull, Inc. for a total of $15,000. Patrick's demands that Edith's friend, Moneybags, a wealthy independent businesswoman (not connected with Edith's business in any way) promise to pay Patrick's for the three machines if Edith's Exercise World does not. Which of the promises in this problem must be in writing to be enforceable? a. None of the promises in this problem need to be in writing. b. Both Moneybag's promise and Edith's Exercise World's promise. c. The promise made by Edith's Exercise World to buy the weight machines. d. Moneybag's promise to pay if Edith's Exercise World doesn't.

b

Elliott, Human Resources Director for Spring Co., sent Lisa the following signed letter: "This letter confirms our offer to you. We will pay for your moving expenses, up to $1,500. Your starting date will be February 1, and you will become eligible for health care benefits as of May 1. You will receive a starting salary of $36,500 annually, with reviews and eligibility for increases at six months, 12 months, and annually thereafter. Vacation will be for two weeks a year after one year." Spring fired Lisa eight months after she started to work, and Lisa sued arguing the letter constituted a memorandum of an oral contract for employment for five years. Is the letter sufficient to satisfy the statute of frauds? a. No, the letter was not formal enough to satisfy the statute of frauds. b. No, to satisfy the statute of frauds, the memorandum must contain all essential terms of the contract. c. Yes, to satisfy the statute of frauds, a memorandum is sufficient if it evidences an oral contract between the parties and is signed by the defendant. d. Yes, the memorandum is signed by the defendant and states with reasonable certainty the subject matter and essential terms of the agreement.

a

For statute of frauds purposes, an interest in land includes: a. All of these answers. b. an easement. c. a house. d. a real estate mortgage

a

In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May, 2014. The deal is never put into writing. In January 2014, if he wanted to cancel the job, Eric _____________ be able to do so. If he does not cancel, and if the band shows up and plays at the party in May, 2014. Eric ______________ have to pay them. (a) will; will (b) will; will not (c) will not; will (d) will not; will not

d

In order to satisfy the statute of frauds, a writing must: a. All of these answers. b. be notarized. c. be a formal written document drafted by an attorney. d. be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises.

d

Jeremy is trying to introduce oral evidence in court to alter the terms of a written contract he had with David. David has raised the parol evidence rule as an objection to Jeremy's testimony. In which of the following circumstances will Jeremy not be able to introduce the oral evidence? a. Jeremy claims that he was defrauded into entering into the contract and wants to testify about the intentional misrepresentations of material facts. b. The oral evidence is introduced to clarify the meaning of an ambiguous term used in the written contract. c. There was a mutual mistake of a material fact when the contract was entered into. d. The contract has an integration clause in it and Jeremy's point of contention is covered in detail in the contract, although not to his favor

c

Jon is trying to introduce oral evidence in court to alter the terms of a written contract he had with Blythe. Blythe has raised the parol evidence rule as an objection to Jon's testimony. In which of the following circumstances will Jon not be able to introduce the oral evidence? a. Jon claims that he was defrauded into entering into the contract and wants to testify about the intentional misrepresentations of material facts. b. The oral evidence is introduced to clarify the meaning of an ambiguous term used in the written contract. c. The contract has an integration clause in it and Jon's point of contention is covered in detail in the contract, although not to his favor. d. There was a mutual mistake of a material fact when the contract was entered into.

c

Mandy verbally tells a motorcycle dealer that she will make her son's motorcycle payments if he falls behind on them. Will Mandy be legally required to live up to this agreement? (a) Yes, absolutely. (b) Yes, if her son is under 18. (c) Yes, if Mandy will be the primary driver of the motorcycle. (d) Yes, if the motorcycle is worth less than $500. (e) No, absolutely not.

b

Matteo and Fernando orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Matteo, is to have possession immediately. Matteo pays Fernando $25,000, takes possession of the land, and starts building a house. At the time of closing, Fernando has made a substantial beginning on the house. However, Fernando refuses to transfer the title, claiming the oral contract is not enforceable. This contract is: a. unenforceable, because the parol evidence rule applies. b. enforceable, because Matteo has partially performed the oral contract and made improvements on the land. c. enforceable, because the statute of frauds does not apply to this interest in land. d. unenforceable, because there is no writing signed by Fernando

land, over a year, marriage, goods over 500, promises of executor, and debt of another

Name the 6 types of contracts that must be in writing

c

Raul wants to plant a garden, and he agrees to buy a small piece of land for $300. Later, he agrees to buy a table for $300. Neither agreement is put in writing. The agreement to buy the land ____________ enforceable, and the agreement to buy the table ____________ enforceable. (a) is; is (b) is; is not (c) is not; is (d) is not; is not

d

Rick entered into an oral agreement to sell 50 jet skis to Seasonal Sports. Rick delivered 20 of the skis on May 1. On June 1, Seasonal Sports notified Rick that it will not honor the agreement. Which statement is correct? a. The contract is obsolete. b. The contract is enforceable for the 50 jet skis c. The contract is void since it was oral. d. The contract is enforceable for 20 jet skis

c

Steph entered into a written contract to buy a car from Hillside Motors. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." This is: a. an exculpatory clause. b. parol evidence. c. an integration clause. d. a statute of frauds clause.

c

Steph entered into a written contract to buy a car from Valley Motors. During the negotiations, the sales representative said that the car had a two-year full warranty. The written contract included a provision that stated, "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." The written contract did not include a warranty. Two months after Steph took delivery of the car, she discovered that the transmission needed to be replaced. Steph claimed that it was covered by the full warranty. Will Steph be able to present evidence as to the sales representative's statements concerning the warranty? a. Yes. The contract was fully executed. b. Yes. The evidence is needed because the contract is ambiguous. c. No. The parol evidence rule will most likely exclude any evidence of the discussion of the warranty. d. Yes. The leading object rule will allow evidence as to the discussion of the warranty.

d

Tabitha dies, and her good friend, Callie is appointed to administer Tabitha's estate. Tabitha's house was in poor condition, so Callie orally hired a contractor to make repairs. Callie also orally promised that if the estate could not pay the repair bill, he would pay it even though he does not live in the house and has no entitlement under Tabitha's estate. The estate does not pay the repair bill. Who can the contractor collect from, if anyone? a. The contractor must collect from the estate first, and then collect any deficiency from Callie. b. The contractor can collect from Callie only. c. The contractor can collect from either the estate or Callie. d. The contractor can collect from the estate only.

c

The Uniform Electronic Transmission Act (UETA): a. All of these answers. b. creates a safe cyberspace environment in which business communications cannot be intercepted or fraudulently altered. c. declares that a contract or signature may not be denied enforceability just because it is in electronic form. d. was passed by Congress in 2002.

b

The common law statute of frauds requires that to be "in writing" an agreement must be signed by.... (a) the plaintiff (b) the defendant (c) both A and B (d) none of the above.

d

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common law is that the: a. common law requires only the signature of the defendant and the quantity of goods being sold. b. common law requires only a verbal indication that the parties reached an agreement. c. UCC requires only the signature of both parties. d. UCC does not require all the terms of the agreement to be in writing.

b

Tony, a college student, places a telephone order for a new computer from CompWorld, Inc. The price of the computer is $1500. The clerk who takes the order and sends Tony a copy of the invoice. The next week, Tony calls back and tries to cancel his order. Which of the following is correct? a. Tony can now cancel the order but only if he does so in writing within ten days. b. Tony can cancel the order; the invoice is unenforceable against him, as he did not sign the invoice. c. Tony cannot cancel the order because CompWorld, Inc. accepted his order. d. Tony cannot cancel the order if he has received the invoice.

c

Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to: (a) Explain the meaning of an ambiguity in the written contract (b) Establish that fraud had been committed in the formation of the contract (c) Prove the existence of a contemporaneous oral agreement modifying the contract (d) Prove the existence of a subsequent oral agreement modifying the contract

b

Under a contract for the sale of land, the statute of frauds: a. requires that the purchase price be fair. b. requires the defendant to sign the agreement. c. does not apply if the purchase price for the land is less than $400. d. requires that the entire agreement be in one single document.

a

Under the UCC, which of the following contracts may be enforceable, even without a written memorandum? a. All of these answers. b. The seller has delivered the goods. c. The seller is specially manufacturing the goods for the buyer. d. The seller admits in court that there was a contract.

d

When a contract falls within the statute of frauds but is not reduced to a writing, the contract is: a. enforceable. b. void. c. illegal. d. unenforceable.

a

Which of the following agreements must be in writing? a. All of these answers. b. Agreements made in consideration of marriage. c. Agreements for any interest in land. d. Agreements that cannot be performed within a year.

a

Which of the following promises ordinarily must be in writing to be enforceable? a. All of these answers. b. The promise by an executor of an estate to pay a debt of the decedent. c. Promises made as a part of a prenuptial agreement. d. The agreement to sell a car for $1500.

a

Which of the following would suffice for a signature on a writing under the statute of frauds? a. Any of these answers would suffice. Judges define "signature" very broadly. b. A name keyed at the bottom of an e-mail. c. A stamped signature. d. A retinal scan.