ACCT 324 Chapter 18
What is not a valid exception to the statute of frauds?
a contract that is unprofitable to all parties
Equal Dignity Rule
a rule requiring that contracts would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent
Admission
a statement made in court or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing
Integrated Contract
a written contract intended to be the complete and final representation of the parties' agreement
What is the common law rule that bars the admission of oral testimony to prove agreement to certain terms if there is a written contract between the parties after the oral testimony occurs?
parol evidence rule
The exception to the statute of frauds that is applicable when a buyer of land has paid a portion of the sales price to prove the existence of a contract is
partial performance
Which of the following are exceptions to the statute of frauds?
partial performance on a contract in an instance where promissory estoppel has been established admission by one party to a contract
What are the elements of a written agreement under the statute of frauds?
parties to a contract must be identified the subject matter of the agreement must be defined all pertinent terms must be listed
For compliance with the statute of frauds one-year rule, the one year is measured by the:
possibility of completing the contract
The title "statute of frauds" is misleading because
there is not one statute, but rather the statute of frauds is a general collection of concepts that has been incorporated at the state level
If a contract can possibly be performed within a year, even if such performance is highly ______, then the contract _______ be in writing to be enforceable.
unlikely does not need to
If a fully integrated agreement has been written, then what is the presumption?
The presumption is that no oral evidence can be admitted to change terms of contract.
The written requirement under the statute of frauds can be demonstrated by:
having several written documents as a part of a contractual agreement
Condition Precedent
in a contract, an event that must occur in order for a partys duty to arise
The origin for our statute of frauds was the English law, Act for the Prevention of Frauds and Perjuries, which was passed in:
1677
In contracts for the lease of goods or the sale of securities, the UCC indicates that if the contract is over ______, it must be writing
5000
Parol Evidence Rule
A common law rule which states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend to have the written agreement be the complete and final version of their agreement.
What constitutes a valid admission under the statute of frauds?
An admission is a statement under oath or as part of a legal process in which a party being sued admits the existence of a contract.
What are the reasons why a partial performance exception to the statute of frauds could be applied
Buyer has taken possession of a land interest as part of a contract Partial payment for a contract involving an interest in land
What kind of contract has an event or occurrence that must occur before the contract can be executed?
Condition precedent contract
Identify the circumstances in which the Statute of Frauds applies
Contracts related to an interest in land Contracts involving secondary suretyships
What are some of the exceptions to the parol evidence rule?
Contracts with ambiguous terms Contracts that have been subsequently modified
What are the elements of the statute of frauds exception for promissory estoppal?
One party detrimentally relied on an oral promise. The detrimental reliance of the injured party could have been foreseen by the other party.
What section of the UCC requires contracts in excess of $500 to be in writing?
Section 2-201
A(n) ______ is a statement made _______ or at some legal proceeding in which one party against whom charges have been brought admits to the existence of a contract.
admission under oath
If a written agreement has missing parts, the court will
admit parol evidence to fill in missing parts
If oral evidence is being offered to clarify an ambiguous term in a written contract, then the court will
admit the oral evidence
Under the statute of frauds, it is _______ that a document be signed by ______ parties.
all of the not required
When calculating the length of time it will take for performance on a contract to determine if the contract falls within the scope of the statute of frauds, the start date for calculating time will be the day
alter the contract is create
Prenuptial Agreement
an agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other parties property
Partial Performance
an exception to the statute of frauds in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties
Under the parol evidence rule, oral testimony is inadmissible to prove certain terms or agreement if it comes
at the same time as the execution of the written contract. before the existence of a written contract.
What states do not allow the admission exception as part of the statute of frauds?
california minnesota
A written agreement under the parol evidence rule is presumed to be
complete
______ is not legally required for a(n) _______ agreement, but courts tend to privilege agreements that include it.
consideration prenuptial
The partial performance exception to the statute of frauds deals with
contracts with a property interest
Primary Obligations
debt incurred in an initial contract
The parol evidence rule _______ parties from introducing evidence that a written agreement was conditioned on terms agreed to ______.
does not prevent orally
One of the main purposes of the statute of frauds is to prevent parties from
entering into contracts to which they do not agree
According to the ______ rule, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal, must also be in writing if negotiated by a(n) ______.
equal dignity agent
Promissory _______ is the legal enforcement of an otherwise unenforceable contract due to ______ reliance.
estoppel detrimental
The statute of frauds provides an exception to its writing requirement when one party ______ relied on an oral contract, and this reliance was _______ by the other party.
forseeable detrimentally
Under the statute of frauds, an individual can make a(n) ______ on a contract to indicate a signature, as long as that was the _______ of the party.
intent mark
In order to have promissory estoppel, the agreement
is not otherwise an enforceable contract
Since the statute of frauds requires a writing as evidence of the contract for sale of _______, a claim of an oral contract is _______ such a contract existed.
land not enough to prove
Mortgages and _______ fall within the statute of frauds because they are considered ______ interest in land.
leases transfers to an
_______ is the only state that does not allow the admission exception as part of the statute of frauds.
louisiana
What states have not passed legislation to incorporate a statute of frauds in their state code?
louisiana new mexico
One of the benefits of the statute of frauds is that it:
makes contractual negotiations easier by ensuring all the specific terms of a contract are written and aware to all parties
If one party promises something to another party as part of an offer of _______ then the contract must be ______.
marriage written
One way parties can create a(n) _______ contract is by having a(n) ______ clause in the contract.
merger integrated
Some states will treat _______ clauses as ______, not binding elements of the contract the court must enforce.
merger recommendations
Parol evidence regarding a contracts's subsequent ______ are an exception to the parol evidence rule and _______ in court.
modifications admissible
The following transfer in interests in land fall within the statute of frauds?
mortgage contracts lease contracts
If there is something in addition to a promise to marry as part of a marriage agreement, then the agreement:
must be in writing
There is ______ federal legislation entitled "statute of frauds", but rather the concept of the statute of frauds exist in _______ law.
no state
When an agreement consists of both written and oral elements, then judges tend to treat the _______ contract as ______.
not finalized written
If a merchant agrees to sell goods to _______, it will be enforceable under the UCC even if it is ______.
not in writing another merchant
_______ contracts for customized goods are ______, even if they would normally have to be in writing according to the UCC.
oral enforceable
The common law makes _____ evidence of an agreement _______ if it is made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement.
oral inadmissible
One of the purposes of the statute of frauds is to ______ unreliable _______ evidence from interfering with a contractual relationship.
oral prohibit
_______ contracts for _______ goods are enforceable even if they would normally have to be in writing.
oral specialized
By requiring that a contract be in writing, the statute precludes the admittance of _____ evidence denying the existence of a contract or claiming additional terms that would _______ alter the contract from its agreed-on written form.
oral substantially
Like the statute of frauds, the ______ evidence rule allows for seven ______ that would be admissible in court.
parol exceptions
Courts can allow ______ evidence to ______ the missing parts, while not modifying the written agreement in any substantial way.
parol oral fill in
A court will allow what type of evidence to prove a subsequent modification of a written contract?
parol evidence
When considering whether a contract falls within the scope of the statute of frauds, the issue is not whether the contract will be _______ within a year, but rather whether it is ______ the contract can be completed in a year.
possible completed
Evidence of the existence of a condition _______ agreed to orally is _______, because the contract is not modified by such evidence.
precedent admissible
One of the main purposes of the statute of frauds is to ______ parties from entering into a contract with which they do ______.
prevent not agree
A benefit of the statute of frauds to enforcement of a contract is that it
prevents unreliable oral evidence from interfering with a contractual relationship
______ obligations, or debts incurred in an initial contract, are not within the statute of frauds and therefore, _______ to be enforceable.
primary need not be in writing
Contracts that have terms that ______ possible performance within a year fall _______ the scope of the statute of frauds.
prohibit within
What are the types of contracts that fall within the scope of the statute of frauds?
promises made in consideration of marriage contracts related to an interest in real property
In an agreement for the sale of goods over $500, only the _____ needs to be stated.
quanity
A(n) _______ obligation occurs when a party ______ a primary agreement promises to fulfill one of the original party's debts or obligations.
secondary outside
______ obligations do require a written contract, unless the main purpose of the contract is to obtain a(n)_______
secondary personal benefit
Which of the following does not fall within the statute of frauds and as such, the contract does not have to be in writing?
secondary obligations where the main reason is to obtain a personal benefit primary obligations
Secondary obligations are also known as:
secondary promises collateral promises
The term "parol" means:
speech or words outside of the written contract
Statute of Frauds
state level legislation that addresses the enforceability of contracts that fail to meet the requirements set forth in the statute
If the main purpose for taking on a secondary obligation is personal benefit, then
the agreement does not fall under the statute of frauds and does not have to be in writing.
Which of the following are not elements of a written agreement under the statute of frauds?
the agreement must be signed by an agent, not the principal to the contract the agreement must be profitable for both parties
If there is a property interest attached to a marriage contract, then what is true about the contract?
the contract must be in writiting
For the contract for sale of goods to be enforceable, both the UCC and the statute of frauds require that only _______ must have signed the written document
the defendant the party against whom action is sought
Within the statute of frauds, the term "land" means:
the land and soil itself of a parcel of property anything attached to the parcel of property, such as tress and buildings
Promissory Estoppel
the legal enforcement of an otherwise enforceable contract due to a party's detrimental reliance on the contract
Parol evidence will be admitted to determine if a contract is ______ or ______.
voidable void
Secondary Obligations
when a party outside a primary agreement promises to fulfill one of the original partys obligation if the original party fails to fulfill it
The required elements of a(n) _______ agreement under the statute of frauds are ______ of parties, subject matter of the agreement, consideration, and any pertinent terms
written identification