EXCEPT MC 3.1.16

Which of the following contracts is not required to be in writing under the Statute of Frauds? A) a contract to be performed in less than 1 year B) a contract made in consideration of a promise to marry C) a contract involving the sale of land D) a contract for the sale of goods of $500 or more E) a contract to pay someone else's debt if that person fails to

A) a contract to be performed in less than 1 year

The part performance exception for contracts involving the sale of an interest in land provides that which of the following is true? A) The parol evidence rule does not apply. B) The contract will be enforced despite the fact that it is not in writing. C) Where multiple parties share the performance obligations, the contract need not be in writing. D) Once a contract has been partially performed, it must be put in writing if that has not already happened. E) Contracts cannot be partly performed until they are put in writing.

B) The contract will be enforced despite the fact that it is not in writing.

In order for an offer to be valid, the following must be met EXCEPT for which of the following? A) There is an objective intent by the offeror to enter into a contract. B) The offer must be in writing and signed by the offeror. C) The offer must be communicated to the offeree. D) The offer must be certain enough that most people can figure out what is being offered.

B) The offer must be in writing and signed by the offeror.

The Statute of Frauds requires that certain types of contracts: A) be in writing in order to be valid B) be in writing in order to be enforceable C) contain a promise for an act D) have two or more attorneys present at the signing of a written contract

B) be in writing in order to be enforceable

The Statute of Frauds requires that the following types of contracts be in writing except: A) promises to make a will B) promises to marry C) contracts involving the sale of interests in land D) contracts impossible to perform within a year

B) promises to marry

Which of the following is not true about the Statute of Frauds? A) One purpose is to preserve evidence where there might be a question about the terms of a contract long after the contract is entered into. B) One purpose is to make parties think seriously about contracts that they might not otherwise seriously consider the potential consequences of. C) A promise to marry someone must be in writing in order to be enforceable. D) Prenuptial agreements must be in writing in order to be enforceable

C) A promise to marry someone must be in writing in order to be enforceable. consideration (legal value) to marry must be in writing.

A contract for the sale of land: A) must be in writing only if the value of the land exceeds $500 B) requires at least two promisors C) must be in writing in order to be enforceable D) is governed exclusively by the Uniform Commercial Code E) must be in writing or there is no contract

C) must be in writing in order to be enforceable

The Statute of Frauds: A) makes certain contracts illegal if they are not in writing B) makes contracts covered by it voidable C) is designed to protect minors from being taken advantage of D) makes certain contracts unenforceable if they are not in writing

D) makes certain contracts unenforceable if they are not in writing

If a contract is not enforced on the basis of the Statute of Frauds, the court has based its decision on the presence of which type of fraud: A) fraud in the inducement B) fraud in the inception C) fraud by concealment D) The decision could have been based on the presence of any of these three types of fraud. E) The decision could not have been based on the presence of any of these three types of fraud

E) The decision could not have been based on the presence of any of these three types of fraud

Two friends, Ann and Mary, are having margaritas at happy hour. There had been no discussion of who would pay for the drinks. After the third round of drinks, Ann said, "I will pay for everything tonight including your drinks." A couple of minutes later, Ann says, "I've changed my mind. I just remembered that they might be having layoffs at my job tomorrow." Mary wants to force Ann to perform on her promise and threatens to sue. In this circumstance, a court would: a. Not require Ann to follow through on the promise because it was a gratuitous promise. b. Require Ann to follow through on the promise under the doctrine of promissory estoppel. c. Require Ann to follow through on the promise if Mary had previously paid a comparable amount for food or drinks consumed by Ann. d. Require Ann to follow through on the promise if it would be a hardship for Mary to pay for her own drinks. e. Not require Ann to follow through on the promise because it would encourage Mary to drink. a. Not require Ann to follow through on the promise because it was a gratuitous promise.

a. Not require Ann to follow through on the promise because it was a gratuitous promise.

Consideration can best be described as: a. Something of legal value. b. What is received in a contract. c. A promise. d. A counteroffer. e. A signature on a contract.

a. Something of legal value.

What is the legal effect of an auction being with reserve? a. The seller has the right to reject all of the bids. b. Certain bidders have reserved bids of specified amounts in advance. c. The bidders must be given an opportunity to inspect the items prior to the bidding. d. Bidders must make a cash deposit in advance to show the financial ability to carry through with the purchase of any item for which they are the highest bidder.

a. The seller has the right to reject all of the bids.

Which of the following constitutes legal consideration? a. A promise to make a gift. b. A promise based upon a change in duties and payments. c. A promise based upon a moral obligation. d. A promise based upon past consideration. e. A promise based upon a preexisting duty.

b. A promise based upon a change in duties and payments.

In general, who can effectively accept an offer for a unilateral contract? a. Any person who performs the action requested in the offer, which can occur either before or after learning of the offer. b. Any person who performs the action requested in the offer, so long as the offer had been communicated to that person prior to the performance of the act. c. Any person who promises to perform the action requested in the offer, which can occur either before of after learning of the offer. d. Any person who promises to perform the action requested in the offer, so long as the offer had been communicated to that person prior to the making of the return promise.

b. Any person who performs the action requested in the offer, so long as the offer had been communicated to that person prior to the performance of the act.

In an auction when the highest bid has been made and no higher bids are forthcoming, the highest bid is treated as an acceptance in: a. Auctions with reserve, but not in auctions without reserve. b. Auctions without reserve, but not in auctions with reserve. c. In both of these kinds of auctions. d. In neither of these kinds of auctions.

b. Auctions without reserve, but not in auctions with reserve.

If Sam, a high school senior, promises to go to school every day in exchange for an "A" in his history class, his promise will most likely: a. Be considered illusory. b. Be found to lack consideration as he had a preexisting duty to attend school. c. Be considered de facto. d. Be upheld as entering into a unilateral contract.

b. Be found to lack consideration as he had a preexisting duty to attend school.

Advertisements are usually considered to be: a. Offers that can be accepted only by those who have seen the advertisement. b. Invitations to deal. c. Offers that can be accepted by anyone attempting to purchase the item whether or not that person has seen the actual advertisement. d. Counteroffers to any previous advertisements.

b. Invitations to deal.

Which of the following most likely constitutes legal consideration? a. A promise to make a gift. b. A promise to refrain from doing an illegal act. c. A promise to buy all that the promisor needs of an item with specifying a minimum quantity. d. A promise based upon past consideration. e. A promise based upon a preexisting duty.

c. A promise to buy all that the promisor needs of an item with specifying a minimum quantity.

When a seller promises a buyer to sell to he/she all of an item that it produces, this results in: a. An unenforceable illusory contract. b. An enforceable requirements contract. c. An enforceable output contract. d. An enforceable accord and satisfaction. e. An enforceable contract with an option to cancel.

c. An enforceable output contract.

In order for a contract to be valid, it must: a. Be made by a writing signed by adults. b. Be fully performed on both sides. c. Contain an offer, acceptance, and consideration. d. Be properly filed.

c. Contain an offer, acceptance, and consideration.

In a two-party contract, which is true about consideration? a. Only one party must suffer a legal detriment. b. Both parties must receive a benefit. c. Each party must suffer a legal detriment. d. Each party must either receive a benefit or suffer a legal detriment.

c. Each party must suffer a legal detriment.

An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is: a. a guaranty contract. b. Unenforceable under the Statute of Frauds because it cannot possibly be within one year. c. Enforceable under the Statute of Frauds. d. A and C only. e. A and B only.

c. Enforceable under the Statute of Frauds.

"Legal detriment" in the context of consideration means: a. Giving up an existing legal right. b. Taking on a new legal duty. c. Giving up an existing legal right or taking on a new legal duty. d. Being found guilty in a criminal case. e. Getting the short end of the deal in a contract.

c. Giving up an existing legal right or taking on a new legal duty.

A promise to deliver merchandise in the future: a. Is not consideration because the merchandise has not yet been delivered. b. Is not consideration because the person delivering the goods does not necessarily receive a benefit for doing so. c. Is consideration because it involves a new legal duty. d. Is consideration so long as the party to deliver the goods received payment before they were delivered.

c. Is consideration because it involves a new legal duty.

A promise to refrain from underage drinking in exchange for $10,000: a. Is just as enforceable as any other promise. b. Is enforceable under a promissory estoppel theory. c. Is not enforceable, as the consideration is illegal. d. May be enforceable if the recipient is a child.

c. Is not enforceable, as the consideration is illegal. promissory estoppel: is when the court order enforcement of a contract that lacks consideration

The requirement that consideration be bargained-for means that: a. The consideration in a contract must be exchanged simultaneously. b. The values of the consideration cannot be greatly different between parties. c. The inducement for each party to give consideration was the consideration of the other party. d. One party determines the consideration to be given by each party.

c. The inducement for each party to give consideration was the consideration of the other party. inducement: a thing that persuades or influences someone to do something.

If a judge rules that a party has lost its case because of the statute of Frauds, the judge has essentially stated that: a. The losing party purposely deceived the other party about a material fact. b. The losing party will not be allowed to introduce evidence to contradict a written agreement. c. The losing party cannot enforce an oral contract that should have been in writing. d. The losing party was founded by the court to have lied, and will therefore lose the case. e. The winning party has proven criminally fraudulent conduct on the part of the losing party

c. The losing party cannot enforce an oral contract that should have been in writing.

An agreement that is lacking consideration: a. Is void as against public policy. b. Is not enforceable, and thus cannot be performed. c. Is enforceable only if in writing. d. Will be enforced only against the party who gave consideration. e. Is not enforceable, but can be voluntarily performed.

e. Is not enforceable, but can be voluntarily performed.

The concept of objective intent with respect to contract law means that: a. When forming a contract, each party must expressly state an intent to be obligated under the terms of an agreement. b. The parties must each intend to be bound by the terms of an agreement based on each party's true intent, whether or not that intent is known by the other party. c. The parties' intent to be bound by the terms of a contract is based on whether an outsider observing the parties' words and conduct would reasonably conclude that the parties have the needed intent. d. So long as one party intends to be bound by the terms of an agreement, the objective intent requirement will be met.

c. The parties' intent to be bound by the terms of a contract is based on whether an outsider observing the parties' words and conduct would reasonably conclude that the parties have the needed intent.

In order to collect a reward, the person must: a. Perform the requested act. b. Have knowledge of the reward before performing the act. c. Have knowledge of the reward before collecting the reward. d. A and B only. e. A and C only.

d. A and B only.

To meet the contractual requirement, consideration must be: a. Fair and reasonable according to the reasonable person standard. b. Approximately equal in overall value. c. Such that each party receives a benefit. d. Bargained-for and involve a legal detriment to each party. e. Recorded in writing in the contract.

d. Bargained-for and involve a legal detriment to each party. Consideration consists of 2 elements: (1) legal value (2) bargained-for exchange. pg. 197 bargained-for exchange: exchange that parties engage in that leads to an enforceable contract. legal detriment: relinquishment of some legal right, which may be something so simple as the right to spend one's money on something else

An illusory promise is: a. Never sufficient to be consideration because it is considered fraudulent. b. Supported by consideration if the acceptance is also illusory. c. Usually considered to be sufficient consideration, although some states will consider it to not meet the consideration requirement if the amount and circumstances "shock the conscience" of the court. d. One that a party has to perform if he or she chooses to do so.

d. One that a party has to perform if he or she chooses to do so.

The objective theory of contracts is based on the premise that: a. Even offers made in obvious jest can be the basis of a contract. b. Every contract must have a central object to it. c. Every contract must have consideration given by both parties. d. Whether the intent is present is based on how a reasonable person would view the parties' actions rather than on the actual intentions of the parties. e. The intent to be bound is determined after the parties have had a chance to perform the contract.

d. Whether the intent is present is based on how a reasonable person would view the parties' actions rather than on the actual intentions of the parties.

The exception to the Statute of Frauds, which allows an oral contract for the transfer of land to be enforced, if the buyer has either paid for the land or taken possession of the land is called the ________ exception. a. parol evidence b. equal dignity c. promissory estoppel d. part performance e. novation

d. part performance part performance: allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice. pg. 239

For statute of frauds purposes, an interest in land includes: a Fixtures b. Mortgages, leases, easements, and life estates. c. Insurance contracts on interests in land. d. A and B only e. A, B, and C

e. A, B, and C

Which of the following can be considered consideration? a. A promise to perform a service in the future. b. Payment of cash. c. Actual performance of a service. d. B and C only. e. A, B, and C.

e. A, B, and C.

An agreement to settle an earlier contract that was in dispute is: a. An illusory promise. b. A putout contract. c. A novation. d. The exercise of an option to cancel. e. An accord and satisfaction.

e. An accord and satisfaction. suspends original contract until accord is performed. Satisfaction of accord discharges both original contract and accord. Aggrieved party may either enforce accord or the original.

If a contract omitted some terms, which of the following terms could be implied by the court? a. Quantity. b. Time for performance. c. Price, if a reasonable price can be determined. d. A, B, and C. e. B and C only.

e. B and C only.