BLAW 3201 Chapter 15

If an executor or administrator promises to pay personally a debt of the decedent, how would this promise be enforceable?

If it was written

The primary contract, between the principal debtor and the creditor, creates the _________.

Indebtedness

What provision covers promises to transfer "any interest in land," which includes any right, privilege, power, or immunity in real property?

Land Contract Provision

What is an exception to the suretyship provision?

Main Purpose Doctrine

What does the Esign Act do?

Makes electronic records and signatures valid across the US for transactions involving interstate or foreign commerce.

What is a provision which applies to a contractual promise by a surety to a creditor to perform the duties or obligations of a third person if the principal debtor does not perform?

Suretyship Provision

What is said of a contract that is subject to the statute of frauds?

The contract is within the statute

What is the purpose of the statute of frauds?

to prevent perjured testimony in court from creating fraud in the proof of certain oral contracts

What kind of contracts are governed by the Statute of Frauds?

1. Promises to answer for the duty of another 2. Promises of an executor or administrator to answer personally for a duty of the decedent whose funds he is administering 3. Agreements upon consideration of marriage 4. Agreements for the transfer of an interest in land 5. Agreements not to be performed within one year

The suretyship provision has been interpreted not to include promises made to a _______.

Debtor

What does the Uniform Electronic Transactions Act do?

Gives full effect to electronic contracts, promotes their use, and implements a uniform legal framework

Angelo borrows $2,000 from Maria. Maria electronically transfers Angelo the $2,000. Angelo promises to pay Maria the full amount in four $500 yearly installments of $500. Is such an agreement enforceable? a. Yes, because Maria has fully performed by making the loan. b. No, because the contract exceeds the one-year provision of the statute of frauds. c. No, because this involves the sale of goods. d. None of these answers are correct.

A

Jayden, a U.S. citizen, contracts with a Canadian life insurance company for $100,000 dollars of coverage. The insurance company sends Jayden an e-mail, which Jayden signs, scans, and returns. Will a court entertain parol evidence on whether the parties intended for the policy to be valued in Canadian dollars or U.S. dollars? a. Yes, because the intent of the parties is uncertain. b. No, the court will look to the document to determine the parties' intent. c. No, because the parties should have been more specific about the currency issue and are stuck with what they have signed. d. Yes, because of the Foreign Corrupt Practices Act.

A

Sherry owns an apartment building. Sherry and Robert orally agree that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. After one year, Robert seeks to rescind the rental agreement with Sherry on grounds that it did not comply with the Statute of Frauds. Will Robert be successful? a. No, both parties have fully performed under the oral contract. b. No, unless Robert invoked the proper provision of the statute of frauds. c. Yes, because this contract involved interest in land. d. None of these answers are correct.

A

Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC is the same. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may not recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

A

Which of the following promises does have to be evidenced by a writing in order to be enforceable? a. Jack's agreement with Steve to sell his condominium for $150,000. b. Sarah's promise to work for Angie for ten months. c. Sam and Alicia decide to get married. d. Karen's agreement with Sandy to buy her sewing machine for $200.

A

Assume that Jack, Hal, and Sophia enter into a written contract for the sale of the restaurant, including the building and all of its contents. Jack orally tells Hal and Sophia that he wants to keep a certain a 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 cannot bring in the evidence of the oral agreement because of the parol evidence rule. B. Jack could likely rescind the entire contract if Hal and Sophia do not turn over the fish. C. Jack will automatically win the case based on the parol evidence rule. D. Jack can bring in the evidence of the oral agreement because of the parol evidence rule

A In an integrated contract, parol evidence, such as oral statements made that contradict the written agreement, are not admissible in contract disputes. Even if it were allowed, a court would not likely invalidate the entire contract, but would just determine the meaning of the clause in question.

How does Esign define an electronic record?

A contract or record created, generated, sent, communicated, received, or stored by electronic means

Amy is Tina's sister and executor of Tina's will. In administering Tina's estate, Amy recognizes that Tina's estate will not have enough funds to pay all of Tina's debts. Amy orally promises to pay Seth, one of Tina's creditors, that she will personally pay all of Tina's debts in full. Is such a promise enforceable? a. Yes, unless Tina promised to pay Seth before her death. b. No, such promises of an executor of a decedent's will falls under the statute of frauds. c. Yes, because Seth is one of Tina's creditors and deserves to be rightfully paid. d. None of these answers are correct.

B

Contracts for the sale of goods priced (starting) at _____ or more must ordinarily be in writing under UCC Section 2-201. a. $50 b. $500 c. $1500 d. $1,000

B

Examples of an enforceable oral contract is/are: a. an oral promise by an executor to guarantee payment of a decedent's debt. b. an oral agreement to substitute the place of closing a land contract. c. an oral agreement to extend an employee's contract for six months to a total of two years. d. All of these are correct.

B

On July 8, 2015, Mural, Inc. entered into a contract with Walls-R-Us Company. Under the contract, Mural, Inc. will provide technical support to Walls-R-Us from August 1, 2015 until August 31, 2018. Under the statute of frauds, this contract: a. does not require a writing because the agreement is for services, not goods. b. requires a writing because the contract cannot be performed within one year from July 8, 2015. c. requires a writing because the contract cannot be performed within one year from August 1, 2015. d. does not require a writing because the term of the contract is one year.

B

One issue before the court in Kalas v. Cook case was: a. whether this transaction fell under the laws of the UCC. b. whether an oral contract for sale of specially manufactured goods was sufficient under the UCC. c. whether Kalas should have sold the books to mitigate the amount owed in this case. d. whether $24,599.38 was a reasonable sum of money to charge for the books and pamphlets in question.

B

The customs and __________ or commercial activity to which the contract relates may be used to interpret the terms of a contract. a. course of dealing b. usage of trade c. course of performance d. extrinsic set of evidence

B

When the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the __________ excludes prior oral or written negotiations or agreements of the parties? a. promissory estoppel rule b. parol evidence rule c. statute of frauds d. the possibility test

B

In Dahan v. Weiss, what did the court hold was insufficient to establish a complete agreement in this case? a. A failure to establish the sale of goods. b. A failure to show a writing. c. A failure between the parties to express their full intentions of the agreement. d. A failure to establish a signature.

C

In the Jenkins v. Eckerd Corporation case, the court ruled that: a. the lower court should not have ruled that the lease was unambiguous. b. the existence of a merger or integration clause establishes per se that parol evidence will not be allowed. c. parol evidence was not admissible when a lease was an integrated agreement and complete in all essential terms. d. parol evidence was admissible even though the lease was clear and complete.

C

Sherry owns an apartment building. Sherry and Robert agree in writing that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. Outside of the written contract, Sherry orally promised Robert that the apartment would have wooden floors and not carpet. Shortly after moving in, Robert discovers that only the front entrance to the apartment has wooden floors, and the remainder of the apartment contains carpet. If Robert seeks to void the rental agreement with Sherry on the grounds that Sherry committed misrepresentation by telling him that the entire apartment had wooden floors. If Sherry invokes the parol evidence rule, will she be successful? a. Yes, the rental agreement was in writing and no parol evidence regarding wooden floors may be admitted. b. Yes, Robert should have requested the wooden floors in writing. c. No, because Robert is alleging misrepresentation. d. None of these answers are correct.

C

When the __________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable. a. promisory estoppel b. probability c. main purpose d. parol evidence

C

Which of the following is not a collateral promise? a. A mother tells the gas station to extend $1,000 worth of credit to her son over the school year and says, "If he doesn't pay, I will." b. Brett promises Denny's bank that if Denny cannot pay his bills, Brett will. c. A father tells Best Computer to deliver a laptop to his son and says, "Send me the bill. I'll pay for it." d. All of these are correct.

C

Assume that Jack, Hal, and Sophia orally agree on the sale of the restaurant for $1,000,000. The written contract incorrectly has the price term as $100,000. The contract contains an integration clause. Hal and Sophia pay $100,000, arguing that is what the contract states. Jack sues for $900,000. Which of the following is correct? A. Jack will be able to bring in parol evidence of the oral terms because this is a fully integrated contract. B. Jack will not be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because of the typographical error. C. Jack will be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because of the typographical error. D. Jack will be able to bring in parol evidence of the oral terms even though this is a fully integrated contract because the price term is ambiguous.

C In an integrated contract, parol evidence such as oral statements made that contradict the written agreement generally are not admissible in contract disputes; however, there are exceptions to this rule, including allowing evidence of gross clerical or typographical errors. Parol evidence also may be admissible for ambiguous terms, but the price term here is not ambiguous, as it could only have one meaning.

Assume at the end of the meeting between Jack, Hal, and Sophia, they orally agree to enter into three separate contracts. One contract 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 located in for $250,000. The third contract is for the original sign that was outside the restaurant that Jack currently has in his garage, for $400. Which of these agreements violates the Statute of Frauds? A. The sale of the intellectual property and the sale of the sign. B. The sale of the building and the sale of the intellectual property. C. The sale of the building only. D. All of the agreements violate the Statute of Frauds.

C The only one of the contracts that would need to be in writing to be valid would be the contract for the sale of the building, since it is an interest in land. The intellectual property is not a good and the sign is not worth more than $500, so the Statute of Frauds does not apply to either sale.

What means secondarily liable; liable only if the party with primary liability does not perform.

Collateral

What is any entity having a claim against the debtor?

Creditor

Carlos orally agrees to sell his house to Andy for $50,000. Can Andy enforce this agreement in court? a. Andy can enforce the agreement to sell the house because they did not use a realtor. b. Carlos must sell the real estate to Andy because of Andy's right to specific performance applicable to sales of real estate. c. Carlos can enforce the sale of the land against Andy, but Andy cannot enforce the contract. d. Andy cannot enforce the agreement without a written contract signed by Carlos.

D

General contract provisions of a writing must: a. specify the parties to a contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or his agent. d. All of these are correct.

D

In determining the meaning of an ambiguous contract the court will: a. ignore the issue of who drafted the contract. b. treat the parties equally in terms of strict interpretation. c. interpret the contract strictly against the person who failed to draft it. d. interpret the contract strictly against the person who drafted it.

D

Jan and Cindy enter into a contract unquestionably governed by the statute of frauds. The only evidence of the agreement is a letter Jan sent to Cindy confirming the deal. Which of the following may be a sufficient "signature" if Jan denies the enforceability of the contract in court? a. Jan's own, handwritten signature. b. Jan's stamped signature. c. Jan's initials. d. All of the above.

D

On March 1, Jimmy, a student, received a telephone call from Peterson, Inc. offering him a job for one year beginning on May 15, after completion of the school year. According to the personnel manager, he will have to move to Texas and be ready to start work at 9:00 a.m. on May 15. Should Jimmy ask for a letter confirming the telephone conversation if he accepts the offer immediately? a. Yes, because the job offer is a collateral promise. b. Yes, because the job offer is covered by the parol evidence rule. c. No, because the job offer is for one year from May 15. d. Yes, because the job offer is for longer than one year from March 1

D

Parol evidence is admissible to show: a. fraud. b. duress. c. mistake. d. All of these are correct.

D

Sherry owns an apartment building. Sherry and Robert agree that Robert will rent one of Sherry's apartments, beginning immediately, for a period of six months. Under the statute of frauds rule, does this lease need to be in writing to be enforceable? a. No, because it does not involve an interest in land. b. Yes, because it involves a promise to pay the debt of another. c. Yes, because it involves an interest in land. d. No, because it is a short-term lease of less than one year.

D

Which of the following would meet the signature requirement for a writing to satisfy the statute of frauds? a. Initials of both parties. b. An electronic signature. c. A printed name. d. All of these are correct.

D

What is a person appointed by a testator to carry out the directions and requests in his will and to dispose of the property according to his testamentary provisions after his decease

Executor

What is a promise to become primarily liable?

Original Promise

Who is the person whose debt is being supported by a surety?

Principal Debtor

What statute requires certain contracts to be evidenced by writing?

Statute of Frauds

What is a guarantee of debts of another?

Suretyship

When does the Uniform Electronic Transactions Act apply?

When parties have agreed to conduct transactions by electronic means

What does the Main Purpose Doctrine say?

Where the object or purpose of the promisor is to obtain an economic benefit for himself, the promise is not within the statute

What transactions does Esign exclude?

wills, codicils, and testamentary trusts, adoptions, divorces, and other matters of family law, and the UCC other than sales and leases of goods