Business Law Ch 17 & 18

Select all that apply: Which of the following are exceptions to the statute of frauds?

Admission by one party to a contract Partial performance on a contract In an instance where promissory estoppel has been established

Select all that apply Which of the following is considered a false assertion of fact?

An act of concealment A nondisclosure An incorrect assertion

________ refers to the active hiding of the truth about a material fact.

Concealment

__________ refers to the active hiding of the truth about a material fact.

Concealment

What must be done in relation to contracts involving an interest in land?

Contracts involving an interest in land are covered by the statute of frauds, and as such, must be in writing.

Identify a true statement about contracts with unilateral mistakes.

Courts are hesitant to void them.

Promissory estoppel requires what major element in order to exist?

Detrimental reliance by the injured party

In which of the following situations is parol evidence contradictory to the final terms admissible?

If the oral agreement was made subsequent to the creation of the contract

Select all that apply: In the context of misrepresentation, when can a consumer take legal action against a company?

If the product benefits are misrepresented on labels If the product benefits are exaggerated in advertisements If the product benefits are misrepresented on the packaging

Select all that apply In the context of misrepresentation, when can a consumer take legal action against a company?

If the product benefits are misrepresented on the packaging If the product benefits are misrepresented on labels If the product benefits are exaggerated in advertisements

Select all that apply: Which of the following statements is true of mistake of fact?

It is an affirmative defense. It consists of unconscious ignorance of a past or present material event.

Which of the following statements is true of the parol evidence rule?

It prevents evidence that substantially contradicts the agreement in its written form.

Select all that apply: What states do not allow the admission exception as part of the statute of frauds?

Louisiana California

Select all that apply: Identify the major obstacles to legal assent

Misrepresentation Duress

Select All that Apply: Which of the following are major obstacles to legal assent?

Mistake Unconscionability Undue influence

Select all that apply Which of the following conditions would permit a court to invalidate a contract on grounds of unilateral mistake?

One party made a mistake about a material fact, and the other party knew about the mistake. The mistake was caused by an accidental clerical error.

Which of the following would allow a court to invalidate a contract on the grounds of unilateral mistake? (Check ALL that apply)

One party made a mistake about a material fact, and the other party knew or had reason to know about the mistake. The mistake was caused by a clerical error that was accidental and did not result from gross negligence. The mistake was so serious that the contract is unconscionable, that is, so unreasonable that it is outrageous.

Select all that apply: What are the reasons why a partial performance exception to the statute of frauds could be applied?

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

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

Primary obligations Secondary obligations where the main reason is to obtain a personal benefit

Select all that apply: What are the types of contracts that fall within the scope of the statute of frauds?

Promises made in consideration of marriage Contracts related to an interest in real property

Select all that apply: Before a contract can be voided for a mutual mistake, which of the following conditions must be met?

The enforcement of the contract will have an adverse effect on the party who did not agree to bear the risk of the mistake at the time of the agreement. The mistake must have a material effect on the agreement. The mistake must be about a basic assumption that affects the subject matter of the contract.

Identify an exception to the need to have the secondary obligation in writing.

The main-purpose rule

Select all that apply: Which of the following is true of a contract that has innocent misrepresentation?

The misled party can rescind the contract. The misled party cannot sue for damages.

Which of the following conditions would permit a court to invalidate a contract on grounds of unilateral mistake?

The mistake was caused by an accidental clerical error. One party made a mistake about a material fact, and the other party knew about the mistake.

Select all that apply In order for the courts to find a nondisclosure of a material fact to be equated with and have the same legal effect as a false assertion, the following elements must be present

There is a failure to correct assertions of fact that are no longer true. There is a statute that requires disclosure. A relationship of trust exists between the parties to the contract.

Select all that apply: Identify a true statement about integrated contracts.

They are in written form. They are considered complete.

Identify a purpose of the statute of fraud.

To ease contractual negotiations by requiring sufficiently reliable evidence to prove the existence and specific terms of a contract

In the context of exceptions under UCC, which of the following contracts is enforceable even if it is an oral contract?

When a merchant sells goods to another merchant

Select all that apply: Under the parol evidence rule, oral testimony is inadmissible to prove certain terms or agreement if it comes

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

For a contract to be enforceable under the statute of frauds, the signature

can be an initial as long as it is intended as a signature

If the written contract has ambiguous terms, the court allows oral evidence for the purpose of ______

clarifying the contract

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

complete

Under exceptions under the UCC, oral contracts for ______ are enforceable even if they would normally have to be in writing.

customized goods

According to the statute of ______, if a contract can possibly be performed within one year, the contract does not need to be in writing in order to be enforceable.

frauds

Intent to deceive occurs when the party making the false statement ____

implies having personal knowledge of its accuracy.

The partial performance exception to the statute of frauds covers contracts:

involving property interest

In order to have promissory estoppel, the agreement:

is not otherwise an enforceable contract

Gabe and Nelson entered into a contract where Gabe agreed to buy a sword owned by Nelson for $300. Gabe thought he was buying the Japanese sword owned by Nelson, but Nelson intended to sell the French rapier. Obviously, the two parties committed a mistake of fact which results in a(n):

lack of assent

If there is a misrepresentation in a contract, the court allows the parties to rescind the contract because the contract lacks __

legal assent

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

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

If a mistake has occurred in the contract, then there is no:

meeting of the minds

The parties to a contract typically have a particular understanding as to the good or service they are giving or receiving. If one or both parties are under the wrong impression of that good or service, we say that a(n)

mistake has occurred

A court was asked to void a contract based on mutual mistake. The parties had entered into an agreement where the seller of goods believed that he was to deliver the goods on the truck which was designated as Route 1. However, the buyer thought he was contracting for the truck designated as Route 2. The only difference between the two trucks was the delivery date -- the Route 1 shipment would be delivered one day sooner than goods shipped on Route 2. The later delivery did not really affect the buyer in any negative way. The buyer was so furious about the late delivery that he wished to teach the trucking company a lesson and requested the court to void the contract. The court will

not void the contract, since at least one of the elements of mutual mistake is missing

A court ordered that a contract was voidable due to the lack of legal assent. The court also ordered that both parties must return what the other party had given to them. This scenario exemplifies the

rescission of a contract

An injured party has no justifiable claim of fraud after relying on assertions whose falsity

should have been obvious

Select all that apply: Secondary obligations are also known as:__

suretyship promises collateral promises

When a contract consists of both written and oral elements, judges tend to _

treat it as nonfinalized contract

An error by one party about a material fact, that is, a fact that is important in the context of the particular contract is called a(n)

unilateral mistake

Select all that apply: Parol evidence is admitted to determine whether a contract is

voidable void

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

written

In the context of the statute of frauds, contracts in which one party promise(s) something in exchange for another's promise to marry must be ______ to be enforceable.

written