Ch 17 t/f
A father's oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding when made in the course of a serious discussion.
false
A note or memorandum does not have to contain all the essential terms of the contract to be valid.
false
A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.
false
A promise to grant a mortgage on real property does not require written proof because it is not a transfer of land.
false
A promise to pay an attorney a fee owed by a third person can be enforced without a writing.
false
Customs and trade usage can override the express provisions of a contract.
false
Parol evidence is not admissible to show fraud, duress or mistake.
false
Provisions of a contract will be considered separately and not as a whole.
false
The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.
false
Through incorporation by deference, a contract can consist of both the original document and the detailed statement that is incorporated in it.
false
Under the statute of frauds, an oral contract must be completed within one year after performance begins.
false
When a contract falls within the statute of frauds, the signatures of both parties must be shown to the court.
false
A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.
true
A writing required by the statute of frauds may be a signed note or memorandum.
true
An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was not binding because it was not properly signed.
true
An oral agreement to supply a line of credit for two (2) years cannot be enforced because of the statute of frauds.
true
Because many oral contracts are legally enforceable, it is a good business practice in the preliminary stages of discussions to stipulate that no binding agreement is intended to be formed until a written contract is prepared and signed by the parties.
true
Details of performance of a contract not expressly stated in a contract will often be implied by the court.
true
If a contract is unclear, it will be interpreted against the party who drafted it.
true
If words and numbers contradict each other in a contract, the rule of construction favors the words.
true
In the absence of a statute requiring a writing, a contract may be oral or written.
true
No writing is required for a service contract that can be performed within one year after the date of the agreement.
true
The parol evidence rule does not apply to changes made after the signing of the contract.
true
The parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.
true
The parol evidence rule generally precludes testimony that would contradict a complete written contract.
true
The parol evidence rule is based on the theory that any oral agreement was abandoned when the contact was written.
true
The past performance of the parties under a continuing contract is important in determining what the contract means.
true
Under the majority view, a contract that does not satisfy the statute of frauds is not enforceable.
true
When persons enter into an agreement, it is presumed that they intent the agreement to have some effect.
true
When the main purpose of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.
true
