chapter 16

Which of the following are situations in which the court will probably admit parol evidence?

1. duress 2. misrepresentation 3. fraud

Which of the following are types of contracts that must be made in writing to be enforceable?

1. for the sale of goods of $500 or more 2. made in consideration of marriage 3. to pay the debt of another 4. for any interest in land 5. made by an executor of an estate to pay the debt of the estate 6. that cannot be performed within one year

Which of the following documents are not valid in most states if signed with an electronic signature?

1. notice of foreclosure 2. will 3. court order

Which of the following phrases constitute parol evidence?

1. something the plaintiff did before the contract was signed 2. something the defendant said as he signed the agreement

Which of the following does the UCC requires in a contract?

1. the signature of the defendant 2. the quantity of goods being sold

Under the merchants' exception rule of the UCC, within a reasonable time of making an oral contract, if a merchant sends a written confirmation to another, and if the confirmation is definite enough to bind the sender herself, then the merchant who receives the confirmation will also be bound by it unless he objects in writing within

10 days

Mast Industries orally offered to sell certain textiles to Bazak International for $103,000. After a few days, Bazak sent a memorandum, signed by a Bazak officer, to Mast confirming the agreement, describing the goods, and specifying their quantity and the price. Mast received the memo but never responded. When Mast failed to deliver the goods, Bazak sued. Who will win?

Bazak

Lauren verbally agrees to sell Dante 500 Bietigheimer apple trees, which are currently too small to be transported. Lauren and Dante agree that Lauren will have the trees delivered when they reach maturity in 18 months, and Dante will pay in full when he receives them. Dante then buys a 10 acre parcel of land that has soil suitable for Bietigheimer apple trees, and he pays a farmer to clear the land and begin preparing it for the arrival of the apple trees next year. Lauren then calls Dante and tells him that she is selling the trees to someone who offered her more money. Dante sues. What result?

Dante will win under promissory estoppel

Derek and Abyan 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, Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek 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, 2011." Abyan signed the napkin. On May 1, 2011, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:

Derek will win because the writing is sufficient under the statute of frauds

Which of the following agreements satisfies the UCC's requirements and may be enforced against Myla?

Geri will sell Myla 2,000 blueberry muffins tomorrow under their usual terms [signed] Myla

Terrance, a recent college graduate, moves to New York City to open the second branch of his mother's business. He plans to work from his apartment full-time. The landlord of the apartment that Terrance applies for is not convinced that Terrance will be able to afford the rent. So Terrance's mother Gloria (who is extremely rich) speaks with the landlord and tells the landlord that if Terrance fails to pay his rent, Gloria will pay it for him. When Terrance fails to pay his rent, the landlord requests the money from Gloria who refuses. What result?

Gloria will not be responsible for Terrance's debt unless the landlord can prove that Gloria made the promise out of self-interest

When Griffiths sold his house to Hippen, Griffiths orally agreed to buy the house back at the selling price if Hippen should happen to move within the next three years. Two years later, Hippen was transferred to Miami and tried to sell the house back to Griffiths, but Griffiths refused. Hippen sued for breach of contract, but Griffiths claimed there was never an enforceable contract. Who wins?

Griffiths wins. The purchase - or repurchase - of a house is a classic interest in land, and any such promise must be written to be enforceable

Iggy verbally agreed to sell frozen hotdogs to Hachiro. He sent a signed memorandum to Hachiro, which read, "Pursuant to our conversation, this is to confirm your order of 100,000 frozen hotdogs for $0.15 each, which you will pick up at my manufacturing plant on November 1 of this year." Upon receiving the memorandum, Hachiro called Iggy and told him the deal was off. On November 1, Hachiro did not collect any hotdogs. If Iggy sues what will be the result?

Hachiro is bound by the memorandum because he never objected to it in writing

Lorna and Igor make a verbal agreement that Lorna will buy a house Igor owns. They agree on the price and a closing date in sixty days. Before closing, Lorna moves into the house with her mother, remodels one of the bathrooms, and paints the kitchen. A week later Igor tells Lorna he does not want to go through with the deal. May Lorna force Igor to sell her the house?

Lorna cannot enforce the deal because her actions were not sufficient to be considered part performance

Daquan designs and manufactures ReaderWranglers, which are beaded, nylon cords that attach to reading glasses and sunglasses, to help prevent people from losing them. Daquan calls Magnus, the CEO of several assisted living facilities for senior citizens, and they agree that Magnus will buy 10,000 ReaderWranglers for $3 each and that Daquan will deliver them to Magnus at Mount Olympus Seniors (MOS) in one month. Daquan arrives at MOS on the specified date with 8,000 ReaderWranglers and Magnus refuses to accept the delivery. Daquan sues. What result?

Magnus must pay for 8,000 ReaderWranglers

an interest in land

NEEDs to be in writing examples: a mortgage, an easement

Lewis hires Ricky to make some repairs to his sailboat. Repairs of this nature generally take eight months, but Ricky has a difficult time finding two pieces of equipment necessary for the job and it ends up taking him just over a year to finish the job. When Ricky is done, Lewis refuses to pay him saying that the contract is not enforceable. Is Lewis correct?

NO, because it is possible to complete the contract within a year

Arabella sells Ann all of her bowling equipment for $1,100. The next day Arabella regrets the deal and tries to rescind the contract. Arabella argues that the agreement is invalid because it should have been in writing, and therefore she has to refund Ann the money, and Ann has to return the bowling equipment to Arabella. Is Arabella correct?

NO, because the contract is fully executed

Norv and Wanda agree verbally that Wanda will buy Norv's house, and that Norv will also sell her his living room furniture for $1,000. They agree on a total price, and that the deal will close in thirty days. Norv prepares his house for Wanda, taking out all his possessions, and leaving the living room furniture. Two weeks later, Wanda tells Norv she does not want to go through with the deal. Can Norv enforce his agreement with Wanda?

Norv cannot enforce the deal because it was not in writing

Doreen calls Peruvian Pastimes (PP) and orders three sweaters customized with the initials of her grandchildren. A week after PP starts knitting the sweaters, Doreen sends a letter cancelling her order. PP sues. What result?

PP will win if it cannot sell the sweaters elsewhere

Sabrina tells her boyfriend Alexander that if they get married, she will give him 50 percent ownership of her tech startup company. Alexander quits his job as a teacher and begins working at Sabrina's company. The two get married but divorce ten months later. Alexander claims that Sabrina owes him 50 percent of her company. Please rule.

Sabrina owes Alexander nothing because the agreement was not in writing

The main difference between the UCC requirement for a writing for a contract for the sale of goods and the common-law rule is that the

UCC does not require all the terms of the agreement to be in writing

Piper is suing Dimitri for breach of contract. Her lawyer admits into evidence a fully integrated contract signed by Piper and Dimitri stating that Dimitri will sell Piper his beach house for $250,000. Will Dimitri be allowed to testify that he only signed the contract because Piper had a gun to his head?

Yes. The court will admit evidence that Dimitri signed under duress

When one person agrees to pay the debt of another as a favor to that debtor, it is called

a collateral promise

Which of the following promises ordinarily must be fully executed in writing to be enforceable?

a promise made by an executor of an estate to pay a debt of the estate

For the purposes of the statute of frauds, an interest in land includes

all of the above: a real estate mortgage an easement a long-term lease on an apartment

The parol evidence rule: When two parties make ________, neither party may use _________ to contradict, vary, or add to its terms.

an integrated contract parol evidence

E-signatures

are valid in all 50 states

In order to satisfy the statute of frauds, a writing must

be signed by the defendant and contain the name of each party, the subject matter of the agreement, and the essential terms and promises

Jamila dies, leaving her best friend Anna as the executor of her estate. Luxury Motors Corp. (LMC) demands $22,000 that is it owed by Jamila, but her estate does not have the money to cover the debt. Anna promises LMC that she will use her own money to cover Jamila's debt, but then fails to do so. Why will LMC not be able enforce Jamila's promise?

because the promise was not in writing and Anna is the executor of the estate

The Statute of Frauds was drafted originally __________, who later repealed it. Today, __________ entirely repealed its Statute of Frauds.

by Parliament no state has

An employment contract that does not specify the duration of the employment

can be terminated at any time by either party

When one person promises to pay the debt of another as a favor to that debtor, it is called a(n) ______ and it generally ________ need to be in writing to be enforceable. When the promisor makes the promise primarily out of self-interest, the agreement ________ need to be in writing, under the _______ rule.

collateral promise does does not leading object

not an interest in land

does NOT need to be in writing examples: a short-term lease, your cattle that graze on your property

Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is

enforceable because of the leading object rule

Able orally agreed to pay Carr $800 to restore Able's antique car within 18 months, even though it was possible for him to complete the restoration in 10 months. The agreement is:

enforceable because the work could be completed within one year

Willis and Leslie 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, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is

enforceable, because Willis has partially performed the oral contract and made improvements on the land

The Statute of Frauds prevents the enforcement of a(n) ________ contract, which is a contract in which the parties have not ________. These contracts are ________.

executory fulfilled their obligations not illegal

A promise made in consideration of marriage is never enforceable.

false

Any contract involving a sale of goods of $100 or more must be in writing.

false

Courts are skeptical of email contracts because they want to prevent parties from entering into contracts unintentionally.

false

Hannah orally agrees to sell her house to Brett for $175,000. If she delivers the deed to Brett with the expectation of payment in two weeks and he fails to pay, most courts will not enforce the contract since it was not in writing.

false

If a defendant did not sign his full name on a contract, the contract will not satisfy the Statute of Frauds.

false

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

false

Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

false

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

false

The Statute of Frauds was written to prevent fraud in criminal suits.

false

leading object rule

if a promise to guarantee another's debt is made primarily for the promisor's own benefit, then the statute of frauds does not apply and the promise does not have to be in writing

Informal contracts often fail to satisfy the Statute of Frauds because they are _________ or _________.

incomplete vague

A(n) __________ is a writing that the parties intend as the final, complete expression of their agreement.

integrated contract

Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?

integrated contracts

Compared to the common law,

it is easier to form a valid contract under the UCC

Alfred orally promised to pay Robert a salary of $30,000 per year for five years and his moving expenses up to $10,000 if Robert would quit his job and come to work for him at his manufacturing plant. Robert agreed to do so, but requested a written contract. Alfred assured him that the company attorney would prepare such a contract as soon as possible, but Alfred needed Robert to start at once. Accordingly, Robert sold his house, moved his family, and commenced to work for Alfred. He was fired without cause two months later. No written contract was ever executed. Can Robert enforce Alfred's oral promise?

maybe. Robert should go to court under the theory of promissory estoppel. Alfred made an oral promise that Robert relied upon, and the way to avoid injustice is to enforce the promise

Mariko wants to buy one of Clare's rowboats so the two draft a contract for its sale. The contract reads: "Binding Agreement: Mariko will buy one of Clare's small rowboats in February. Mariko will pay cash, and Clare will deliver the rowboat to Mariko." If both parties signed the agreement, will it satisfy the Statute of Frauds?

no, because it is too vague

Can a defendant who is being sued for breach of contract escape liability by arguing that the contract was void because it lacked the plaintiff's signature?

no, if the defendant signed the contract the agreement is valid

Renita, a merchant, has received a signed, written confirmation from Merchants, Inc. referring to goods she had not ordered. Renita should

object to the confirmation in writing within 10 days

statute of frauds

refers to the requirement that certain kinds of contracts be memorialized in a writing, signed by the party to be charged, with sufficient content to evidence the contract

In Mayo v. North Carolina State University, the court

refused to admit parol evidence because the parties intended the employment agreement to be a full integration, and because the documents were unambiguous

To provide juries with more __________ about whether or not a contract existed, Parliament passed the ________. It required that in several types of cases, contracts had to be ________. One category was contracts involving interests in ________.

reliable evidence Statute of Frauds in writing land

Parliament _________ the Statute of Frauds because it concluded the statute was ________.

repealed helping people commit fraud

In 1677, the British legal system was structured in a way

that made it susceptible to witnesses lying on the stand

The key difference between the common law Statute of Frauds and its UCC counterpart is that ________ does not require _________ terms of the agreement to be in writing. The Code _________.

the Code all of the specific looks for an indication that the parties reached an agreement

Brahma entered into an oral agreement to sell 50 jet skis to Summer Sports. Brahma delivered 20 of the skis on May 1. On June 1, Summer Sports notified Brahma that it will not honor the agreement. Which statement is correct?

the contract is enforceable for 20 jet skis

Abby hires a contractor to make repairs on her house. Before the repairs are finished, Abby dies. Her good friend, Clay is appointed executor of Abby's estate. Clay 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 Abby's estate. If the contractor's bill does not get paid, who can the contractor collect from, if anyone?

the contractor can collect from the estate only

Claude 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

the lease is required to be in writing because of the one-year rule

The UCC requires a writing for _________.

the sale of goods priced $500 or more

Landlord owned a clothing store and agreed in writing to lease the store's basement to another retailer. Both parties signed a written lease that (1) described the premises exactly, (2) identified the parties, and (3) stated the monthly rent clearly. However, a trial court held that the lease did not satisfy the Statute of Frauds. Why not?

the writing needs to state the effective dates of the lease

A contract for the sale of goods for $750 is unenforceable if it is not in writing.

true

A contract may consist of several documents that were written at different times.

true

A court will admit parol evidence if it determines that a contract is ambiguous.

true

Bry, Inc. and Gangl Co. entered into an oral agreement for the sale of 3,000 sweaters. Both parties performed as required under the contract. Bry delivered the sweaters and Gangl accepted and paid for them. Since the contract is fully executed, it makes no difference that it was an oral agreement.

true

Carlos has filed suit against Aiden, alleging that they had a binding agreement. When Aiden is cross examined by Carlos's lawyer at trial, Aiden admits that he and Carlos had agreed to the terms verbally. Aiden's statement means the contract may be enforceable.

true

If a court determines that a contract is incomplete, it will admit parol evidence.

true

Parol evidence refers to anything (other than the written contract itself) that was said, done, or written before or as the parties signed the contract.

true

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.

true

The Uniform Commercial Code provides that, under certain circumstances, a merchant may be liable on a written contract, even though that merchant has NOT signed it.

true

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

true

The Statute of Frauds allows a party to cancel future obligations but not _________, so once a contract is ________ it makes no difference that it was unwritten.

undo past actions fully executed

Lisa assigns a contract to buy a used Chevy "as is" from Alejandro. Shortly after, the car's alternator needs to be replaced and Lisa sues Alejandro. Will Lisa be able to admit evidence that Alejandro told her the car had a brand new alternator?

yes, even if the contract is fully integrated Lisa can probably testify regarding Alejandro's fraudulent statements