Ch 16 Mindtap

The sale of the building only.

1. Assume at the end of the meeting between Jack and Hal and Sophia, they orally agree to enter into three separate contracts. One 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 in for $250,000. The third is for the original sign that was outside the restaurant that Jack had in his garage for $400. Which of these agreements violates the Statute of Frauds? a. The sale of the building only. b. The sale of the building and the intellectual property. c. The sale of the intellectual property and the sign. d. All of the agreements violate the Statute of Frauds.

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

2. Assume that Jack and Hal and Sophia enter into a written contract for the sale of the restaurant, the building and all of its contents. Jack orally tells Hal and Sophia he wants to keep a certain 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 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. c. Jack could likely rescind the entire contract if Hal and Sophia do not turn over the fish. d. The parol evidence rule would not apply since it is an integrated contract.

True

A collateral promise and a secondary obligation are the same.

b. phone conversation

A writing can consist of anything in the following list EXCEPT a(n): a. check. b. phone conversation. c. fax. d. invoice. e. order confirmation. f. e-mail.

Enforceable; goods 1. Customized 2. Admissions 3. Partial 4. confirmed

Business Contracts that Must be in Writing to be ________ . --> Contracts for the sale of _______ priced at $500 or more. --> Exceptions: (4) 1. __________ goods 2. __________ (quantity) 3. __________ performance 4. Merchants ______ in writing .

price clarity

Contracts for the sale of land often are required to indicate the_____ and describe the property with sufficient _______ to allow them to be determined without reference to outside sources.

b. does not need to be in writing.

Dillon hires Rhonda to tutor him. They discuss Rhonda's fee and hours and agree that the arrangement will last for the entire school year. Under the Statute of Frauds, this contract: a. must be in writing under the Uniform Commercial Code (UCC). b. does not need to be in writing. c. must be in writing based on the one-year rule.

a. does not need to be in writing.

Dillon struggles with his algebra class and, in August, decides that he needs to get a tutor for the next school year. He persuades Vonda to tutor him beginning in September. They discuss Vonda's fee and hours, and agree that the arrangement will last for the entire school year. Under the Statute of Frauds, this contract a. does not need to be in writing. b. must be in writing under the Uniform Commercial Code (UCC). c. must be in writing based on the one-year rule. d. must be in writing because it is collateral.

True

If a contract is partially integrated, evidence of consistent additional terms is admissible to supplement the written agreement.

False

If a party against whom enforcement of an oral contract admits that a contract for the sale was made, the contract will still be unenforceable.

c. promissory estoppel.

James tells Jennie that if she can find him an original painting by G. Harvey signed with a No. 1, he will reimburse her up to $2,500. If Jennie finds such a print, presents it to James, and he refuses, to pay, she can recover under the doctrine of a. partial performance. b. admission. c. promissory estoppel. d. parol evidence.

Statute of Frauds

Note, though, that oral modifications may not be enforceable under the ______

c. If the buyer paid part of the price, taken possession, and made permanent improvements to the land.

Oral contracts for the sale of land fall under the Statute of Frauds, but under what circumstance might a court enforce such a contract? a. If the buyer is a minor. b. If the buyer promised to make payment on the contract next year. c. If the buyer paid part of the price, taken possession, and made permanent improvements to the land.

True

Prenuptial agreements must be in writing to be enforceable.

Reasonable reliance

Promissory estoppel and the doctrine of partial performance both require

b. No, under the main purpose rule.

Sandy guarantees to pay Lester any debts Albert incurs with Lester. Sandy makes this guarantee because she knows that if she does not, Albert will run up a large debt with Lester and be forced to declare bankruptcy. Albert would then most likely be unable to pay Sandy what he owes her. Does this contract have to be in writing? a. No, under the nuptial rule. b. No, under the main purpose rule. c. Yes, under the evidentiary rule. d. Yes, under the first-definer rule.

True

Sometimes courts enforce oral contracts that should be in writing when partial performance is an unmistakable indication that one party believes that there is a contract.

Innocent parties

The primary purpose of the writing requirement is to prevent harm to ________ by requiring written evidence of agreements concerning important transactions.

c. the parties' memory of their contract terms is not reliable for longer than a year.

The reasoning behind the one-year rule under the Statute of Frauds is that: a. because of the Statute of Frauds, there is no objective theory of contracts. b. most contracts are invalid if they last for more than a year. c. the parties' memory of their contract terms is not reliable for longer than a year.

parties subject matter consideration essential

Under most state laws, the writing must also name the _____ and identify the _______ , the _________, and the ______ terms with reasonable certainty.

prior dealing

Under the Uniform Commercial Code (UCC), evidence of _______ can be used as evidence for interpreting an otherwise valid written contract.

True

Under the Uniform Commercial Code, courts allow the introduction of practices and customs generally allowed in a particular industry to shed light on the meaning of certain contract provisions.

Parol Evidence Rule

a substantive rule of contracts under which a court will not receive into evidence the parties' prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract

voluntarily

A memorandum evidencing an oral contract must give some indication that the parties _______ agreed to the terms.

False

A primary obligation and a collateral promise are the same.

Integrated Contract

A written contract that constitutes the final expression of the parties' agreement. Evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible

True

A collateral promise is one made by a third party to assume the debts or obligations of a primary party to a contract if the primary party does not perform.

no enforceable contract

After a night of drinking, Bob tells his neighbor, Steve, that he can have a right-away to drive across Bob's land to get to a fishing pond. A month later, while Steve is driving across Bob's land, he hears Bob yell, "Get off my property, you trespasser!" Steve has _______

True

An exchange of e-mails that evidences the parties' agreement usually is sufficient to satisfy the writing requirement.

a guarantor's main purpose in incurring a secondary obligation is to secure a personal benefit

An oral promise to answer for the debt of another is covered by the Statute of Frauds unless:

b. has repealed all of the statute except the provisions relating to collateral promises and land transfers.

England, the nation that created the original Statute of Frauds in 1677: a. repealed the statute entirely. b. has repealed all of the statute except the provisions relating to collateral promises and land transfers. c. has repealed all of the statutes except the provisions relating to the one-year rule. Hide Feedback Correct

True

Every state has a statute specifying what types of contracts must be in writing and we refer to such a statute as the Statute of Frauds.

modification

Evidence of any subsequent ________ (oral or written) of a written contract can be introduced in court.

b. the legal description written on a separate piece of paper and mailed separate from the contract.

If Juan is buying a tract of land from Ken, which of the following would NOT constitute a contract containing the legal description? a. the legal description written on a separate piece of paper not attached to the contract, but in the same envelope. b. the legal description written on a separate piece of paper and mailed separate from the contract. c. the legal description written on a separate piece of paper, attached to the contract with a paperclip. d. the legal description written in the contract itself.

One year from the Day after the Date of Contract Formation

If performance cannot possibly be completed within a year, the contract must be in writing to be enforceable

Date of Contract formation

If the contract can possibly be performed within a year, the contract does not have to be in writing to be enforceable

a. evidence from outside the contract is excluded.

Many contracts contain an integration clause, which means that: a. evidence from outside the contract is excluded. b. only the buyer can dispute the contract. c. only prior dealings can be used to supplement the written contract.

1. A promise to work for an employer for the rest of your life 2. Yes 3. Contracts involving land 4. Yes 5. the price of the goods 6. Yes 7. Yes 8. the person who the contract is being enforced against 9. the landlord 10. a typed name 11. the broker 12. Yes 13. would not be enforceable 14. would not

Newmark & Co. Real Estate, Inc., contacted 2615 East 17 Street Realty, LLC, to lease certain real property on behalf of a client. Newmark e-mailed the landlord a separate agreement for the payment of Newmark's commission. The landlord e-mailed it back with a separate demand to pay the commission in installments. Newmark revised the agreement and e-mailed a final copy to the landlord. Does the agreement qualify as a writing under the Statute of Frauds? The statute of frauds requires certain types of contracts need to be in writing. 1. All of these contracts must be in writing except which one? 2. Does the real estate broker's separate agreement for payment of commission fall under the statute of frauds? 3. Under which category? 4. Does an e-mail satisfy the writing requirements for the statute of frauds? 5. All of these are the essential terms needed in a writing, except which one? 6. Are these essential terms in the e-mail exchange? 7. Does the writing satisfy the essential terms requirement? 8. Who must sign the writing? 9. Who signed the e-mails? 10. What type of signature must be on an e-mail in order to enforce an electronic record? 11. Who is enforcing the commission agreement? 12. Is it likely a court would find the e-mails satisfy the statue of frauds and therefore order the landlord to pay the commission? 13. What if the landlord had not replied demanding the commission be paid in installments? The commission ... 14. Why? The landlord ______ have signed the agreement by returning it

void

Oral evidence can be introduced in all cases to show that the contract was voidable or _____

typographical

Parol evidence is admissible to correct an obvious ______ error.

d. They can offer parol evidence to clarify the clerical error.

Susan agrees to work for Dominic for one year in his law office. Dominic writes an employment contract stating that Susan will earn $20 per hour and will work 40 hours per week. Dominic terminates Susan's employment after six months. Susan sues to recover what she claims are her losses. At trial, both parties discover that the contract says that Susan's hourly wage is $0.20 per hour. What can Susan and Dominic do about the error? a. They can ask the court to rewrite the contract. b. They are bound by the writing under the Statute of Frauds. c. They can offer evidence of the consideration that supported their contract. d. They can offer parol evidence to clarify the clerical error.

False

The Convention on Contracts for the International Sale of Goods (CISG) incorporates the original Statute of Frauds provisions. a. True b. False

c. a new college textbook

The Statute of Frauds covers all of the following EXCEPT contracts for the sale of: a. a new car. b. land. c. a new college textbook.

True

The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.

Interests performed Collateral consideration $500

The Types of Contracts Generally Required to Be in Writing: 1. Contracts involving _____ in land. 2. Contracts that cannot by their terms be _________ within one year from the day after the date of formation. 3. ________, or secondary, contracts, such as promises to answer for the debt or duty of another. 4. Promises made in _______of marriage. 5. Under the Uniform Commercial Code, contracts for the sale of goods priced at _____ or more.

True

The written contract need not consist of a single document in order to constitute an enforceable contract.

True

Under the Uniform Commercial Code, oral contracts for customized goods may be enforced in certain circumstances.

essential terms

Under the common law, a memorandum evidencing an oral contract must include

b. additional evidence is admissible to show the meaning of the terms.

Under the parol evidence rule, when the terms of a written contract are ambiguous, a. the court will conclude that the contract is legally defective. b. additional evidence is admissible to show the meaning of the terms. c. additional evidence is not admissible to show the meaning of the terms.

The UCC

What act requires that a contract for the sale of goods priced at $500 or more must be in writing to be enforceable?

interpretation

When the terms of a written contract are ambiguous and require _______ ,evidence is admissible to show the meaning of the terms.

essential

When the written contract is incomplete in that it lacks one or more of the______ terms, the courts allow additional evidence to "fill in the gaps."

a. The potential damages must be less than $500.

Which of the following conditions does NOT have to exist for the doctrine of promissory estoppel to preclude the need for a writing? a. The potential damages must be less than $500. b. The reliance must have been foreseeable to the person making the promise. c. The promisee must have justifiably relied on the promise to his or her detriment. d. There must be no way to avoid injustice except to enforce the promise.

Fully Integrated --> Parol Evidence Inadmissible

Written Contract: ________: Intended to be a complete and final embodiment of the terms of the parties' agreement --->________ For example, evidence of a prior negotiations that contradicts a term of the written contract would not be admitted

Not Fully Integrated --> Parol Evidence Admissible

Written Contract: _________: omits an agreed-on term that is consistent with the parties' agreement --> ________ : For example, if the contract is incomplete and lacks 1 or more of essential terms, parol evidence may be admitted

Yes, b/c it is a collateral promise

You ask your friend to loan you $2,000 for the down payment on a new car. He agrees only if he is repaid in six months and your father agrees to pay him back if you fail to do so. Does this arrangement have to be in writing to be enforceable?

True

Your uncle says to your boyfriend that he will pay him $30,000 if he marries you. Such a promise must be in writing to be enforceable.