Bus 5 Ch 16

The original English Statute of Frauds of _______ required a writing for contracts for the sale of goods for a price of _________.

10 pounds sterling or more

What RULE (law) did the court follow in the Yung-Kai Lu v. Univ. of Utah case?

An integrated agreement is a writing that constitutes the final expression of one or more terms of an agreement. An agreement reduced to writing is "conclusively presumed" to contain the whole of the agreement between the parties.

Contracts that are within the statute of frauds include the following: _________.

Bilateral contracts that cannot be performed within a year from the date of their formation Collateral contracts in which a person promises to perform the obligation of another person Contracts for the sale of an interest in real estate

The following types of contracts are within the scope of the statute of frauds:___________.

Contracts in which an executor or administrator promises to be personally liable for the debt of an estate Contracts in which marriage is a consideration Contracts for the sale of goods for a price of $500 or more

What RULE (law) did the court use in the Browning v Poirier case?

Contracts of uncertain duration are excluded - the provision only covers those contracts whose performance cannot possibly be completed within a year The general rule is that the statute of frauds bars enforcement of oral contracts which by their terms are not to be performed within a year.

What was the court's ANALYSIS (legal reasoning) in the Dynegy v Yates case?

Cracraft orally promised that Dynegy would be paying Olis's fees through trial, and the agreement was never reduced to writing. Yates agreed to defend Olis, and both agreed in exchange that fees were due when billed unless other arrangements were made. Dynegy orally promised to pay attorney's fees associated with Olis's defense that, under the fee agreement, were Olis's obligation

What is the main ISSUE (legal question) the court wants to answer in the Dynegy v Yates case?

Does the statute of frauds "main purpose" doctrine prevent Dynegy from answering for the debt of Olis?

In 17th century, ________ prohibited parties to a lawsuit from testifying in their own cases.

England

What was the court's CONCLUSION (decision, holding) in the Green Garden Packaging Co., v. Schoenmann Produce case?

For Schoenmann. The contract is for sale of goods over $500, but without a writing or exception, is unenforceable under the statute of frauds.

What was the main ISSUE (legal question) in the Green Garden Packaging Co., v. Schoenmann Produce case?

If the nonwritten agreement is a sale of goods over $500 is there an exception to the writing requirement? Is the agreement a sale of goods over $500 UCC § 2-201(a), and if so does it require a writing to be enforceable?

According to § 139 of the Restatement (Second) of Contracts, the requirements for a promise that induces action or forbearance to be enforceable notwithstanding the statute of frauds would be the following: _________.

If the reliance was foreseeable to the person making the promise If injustice can be avoided only by enforcing the promise

What was the court's ANALYSIS (legal reasoning) in the Yung-Kai Lu v. Univ. of Utah case?

Lu argues that the language in the contract for three-year teaching assistant appointments is barred by the statute of frauds The language in the agreement Lu relies on is not a three year agreement, but rather allows for renewal up to three years

Crayonin Inc. (Customer)has an oral contract with Peterson (Calendar maker) for the sale of $2,500 worth of calendars imprinted with Crayonin Inc.'s name and address. Crayonin Inc. repudiates the contract before Peterson has made a substantial beginning in manufacturing the calendars. If Crayonin sues Peterson, who wins and why?

Peterson because the contract will be unenforceable under the statute of frauds

In an attempt to stop the widespread criminal deceptions and perjury, the Parliament of England enacted the _______ in 1677.

Statute of Frauds

What RULE (law) did the court use in the Dynegy v Yates case?

The burden is on the opposing party to establish an exception (main purpose) that would take the verbal contract out of the statute of frauds. The statute of frauds' suretyship provision states an oral promise by one person to answer for the debt of another person is generally unenforceable.

What was the court's ANALYSIS (legal reasoning) in the Green Garden Packaging Co., v. Schoenmann Produce case?

The contract was for the sale of goods over $500 but was no writing evidencing the alleged agreement between Green Garden and Schoenmann Green Garden did not specially manufacture any food items, nor has Schoenmann admitted a contract for sale of these food items was made There is no evidence that any payments were made or accepted by Schoenmann or that any food items were received or accepted by Schoenmann

What was the main ISSUE (legal question) in the Browning v Poirier case?

The issue was whether Browning's action for breach of contract was barred by the statute of frauds

The guarantor

The one who agrees to pay the debt of another person who carries a debt or obligation

The obligee

The person to whom a debt is owed who needs the repayment

The Principal debtor

The person who carries the debt of obligation

Which of the following would be a true statement about oral contracts?

They are more easily misunderstood than written contracts tend to be.

The two situations in which parol evidence can be used in the context of a business contract are: ________.

To show that a contract was illegal or was induced by fraud, misrepresentation, undue influence, or mistake To explain an ambiguity in a written contract

What was the main ISSUE (legal question) in the Yung-Kai Lu v. Univ. of Utah case?

Was the written contract between Lu and University of Utah a final integreated contract between the parties? Does the parol evidence rule apply to a written contract between Lu and University of Utah?

Assume Derek and Jay have a signed written contract that provides Derek will buy Jay's truck, but Jay has two trucks. The parties offer evidence of negotiations, statements, and other circumstances preceding the creation of the written contract to identify the truck to which the writing refers. Does the parol evidence rule apply?

Yes, the parol evidence rule helps the court interpret the contract.

When a contract is ________ integrated, the parties are permitted to use _________ evidence to prove the _________ terms of their agreement.

additional parol partially

A true statement about the marriage provision of the statute of frauds is that it _________.

applies to a contract in which one party's promise is given in exchange for marriage.

An oral contract within the statute of frauds can be enforced without a writing in situations involving the sale of specially manufactured goods only if the nature of the specially manufactured goods is such that they __________.

are not suitable for sale in the ordinary course of the seller's business

If _________, the UCC permits a confirmatory memorandum to satisfy the statute of frauds.

both of the parties to a contract are merchants

According to the marriage provision of the statute of frauds, if Ronald promises to deed his ranch to Stella in exchange for Stella's agreement to marry Ronald's son, then Stella __________.

cannot enforce Ronald's promise without written evidence of the promise.

A(n) _______ contract is one where a person agrees to pay the debt or obligation that a second person (debtor) owes to a third person if the principal debtor fails to perform.

collateral

A true statement about a memorandum in a business contract is that it must _________.

contain the identity of the parties in the contract.

The first step taken by courts in the interpretation process of a business contract is to ________.

determine the parties' principal objective

Completely _________ oral contracts are __________ under the section involving specially manufactured goods if they are not suitable for sale in the ordinary course of business.

executory not enforceable

The statute of frauds applies only to __________.

executory contracts

Situations such as a promise that is not in writing is denied enforcement are controlled by a type of statute called the statute of ________.

frauds

The standard for determining the sufficiency of the contents of a memorandum is more flexible in contracts concerning the sale of __________.

goods

A merger clause is also known as a(n) ________.

integration clause

An oral contract for the sale of land that has been completely performed by a vendor or seller _________.

is enforceable without a writing.

Assume Joel and Jonathan enter into an oral contract for the sale of Joel's farm at an agreed-on price and Joel delivers a deed to the farm to Jonathan. Assuming this scenario, Joel has fully performed the contract and the contract _________.

is enforceable without a writing.

If a bilateral, executory contract is for an indefinite period of time, it _________.

is not within the statute of frauds

A written form of a contract is still very useful because _________.

it increases the chances of being able to depend on the enforcement of one's contracts

The two main requirements for a confirmatory memorandum between merchants to satisfy the statute of frauds are that the __________.

memo must be sent within a reasonable time after the contract is made. memo must indicate that a contract was made, state a quantity, and be signed by the sender.

A(n) ________ is very common in form contracts and commercial contracts that contains complete integration of the parties' agreement.

merger clause

When an executor acts in his representative capacity and agrees to pay the decedent's debts, ____________

no writing is required when funds of the decedent's estate are used

The idea behind § 139 of the Restatement (Second) of Contracts and the cases employing promissory estoppel is that the statute of frauds should __________.

not be allowed to work an injustice

§ 2-201 of the Uniform Commercial Code provides that contracts for the sale of goods for the price of $500 or more are ________.

not enforceable without a writing or other specified evidence that a contract was made

In the context of a business contract, the parol evidence rule applies _________.

only in cases in which the parties have expressed their agreement in a written contract.

The _____ rule provides that, when parties enter into a written contract that they intend as a complete integration, a court will not permit the use of evidence of prior or contemporaneous statements to add to, alter, or contradict the terms of the written contract.

parol evidence

The term _________ means written or spoken statements that are not contained in the written contract.

parol evidence

An executor will _______.

pay the debts owed by a decedent if he or she dies leaving a will.

When faced with interpretation of a contract, a court will first attempt to determine the parties' _________.

principal objective

In contract law, there are certain situations in which a promise that is not in writing can be denied enforcement according to the _________.

statute of frauds

A contract that cannot be performed within one year from the day on which it comes into existence requires a writing because the ________.

terms of the contract make it impossible for the contract to be completed within one year

The parol evidence rule is relevant only in cases in which _________.

the parties have expressed their agreement in a written contract

What RULE (law) did the court use in the Green Garden Packaging Co., v. Schoenmann Produce case? UCC Section 2-201 provides several statutory exceptions to the writing requirement for the sale of goods under the statute of frauds: _______. (Check ALL that apply)

the party against whom enforcement is sought admits there is a contract for the sale of goods payment was made and accepted for the goods in question the goods are specially manufactured for the buyer and not suitable for sale to others

A contract that fails to comply with the statute of frauds is _________.

unenforceable.