MGT 325 Ch. 13 Concepts

Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and void or voidable contracts?

Allowing evidence that proves a contract is void or voidable violates the parol evidence rule.

Oral evidence used to clarify ambiguity is ______.

not believed to modify the contract but, rather, to clarify it

Which of the following is an accurate statement regarding the rights of third-party beneficiaries to sue to enforce contract obligations?

An intended beneficiary can sue to enforce a contract obligation, while an incidental beneficiary cannot sue to enforce a contract obligation.

True or false: The parol evidence rule prevents parties from introducing evidence proving the written agreement was conditioned on terms agreed to orally.

False

Which of the following is an incorrect statement regarding the subsequent modification of an existing, written contract?

If the contract's terms require modifications to be in writing, oral modifications are nevertheless admissible.

Parol evidence will be admitted to clarify a contract ______.

by filling in the missing parts while not substantially modifying the written agreement

Instead of the third party receiving something, as in an assignment, delegations require the ______ to fulfill the delegator's contractual obligation to the obligee.

delegatee

A(n) ______ occurs when a party to a contract transfers his or her duty to perform to a third party who is not part of the original contract.

delegation

A(n) ______ clause is a clause parties include in a written agreement within the statute of frauds stating that the written agreement accurately reflects the final, complete version of the agreement.

merger

Which of the following is not a recognized exception to the statute of frauds?

nonperformance

A(n) ______ is a party who agrees to do something under a contract.

obligor

Attorney Jack Highlander agrees to represent Charity Vance in a divorce proceeding next month. In this specific context, Highlander is a(n) ______ under the contract.

obligor

Contracts whose performance, based on the terms of the contract, cannot possibly occur within ______ fall within the statute of frauds and therefore must be in writing.

one year

Under ______ performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and has begun to improve the land permanently, the course will consider such actions proof of the contract.

partial

When an entire contract is conditioned on something occurring first, that first thing is known as a condition ______.

precedent

A ______ agreement is a contract entered into by two parties before marriage that clearly states the ownership rights each party enjoys in the other party's property.

prenuptial

Various exceptions to the statute of ______ include admission, partial performance, and promissory estoppel.

frauds

Which of the following is an accurate statement regarding the relationship between the parol evidence rule and void or voidable contracts?

Courts allow parol evidence to demonstrate that a contract is void or voidable.

Which of the following is an incorrect statement regarding the applicability of the parol evidence rule to a nonfinalized, partially written and partially oral, contract?

When a contract consists of both written and oral elements, judges tend to treat the agreement as finalized.

Contracts are typically private agreements, in the sense that the focus of the contract is the two parties involved and no one else. The two parties are said to be in ______ of contract.

privity

Which of the following is a correct statement regarding the relationship between the parol evidence rule and incomplete contracts?

When a contract is fundamentally flawed because it is missing critical information, courts can allow parol evidence to provide the missing information.

According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?

- An oral contract for customized goods. - An oral contract between merchants.

Which of the following is not a recognized exception to the parol evidence rule?

- contracts with a merger claus - contracts that are represented to be the full and final agreement of the parties

Which of the following is a specific type of contract that falls within the statute of frauds?

A contract related to an interest in land.

Which of the following is an accurate statement regarding the applicability of the parol evidence rule to evidence of a condition precedent?

Evidence of a condition precedent agreed to orally is admissible because the contract is not modified by such evidence.

Suppose Amanda contracts with Alex to clean his house. In return, Alex agrees to pay Amanda's credit card debt to her credit card company. In this third-party beneficiary contract, Amanda is the ______.

promisee

The ______ is the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary.

promisee

Suppose that Amanda contracts with Alex to clean his house. In return, Alex agrees to pay Amanda's credit card debt to her credit card company. In this third-party beneficiary contract, Alex is the ______.

promisor

The ______ in a third-party beneficiary contract is the party to the contract who made the promise that benefits the third party.

promisor

Uniform Commercial Code Section, ______ requires a contract for the sale of goods priced at $500 or more to be in writing to be enforceable.

2-201

Which of the following is not a specific type of contract that falls within the statute of frauds?

A contract for the sale of goods valued at less than $500.

Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts with serious and obvious typographical errors?

A written agreement is fundamentally altered by allowing parol evidence to correct a typo.

Under the statute of frauds, which of the following is not true of the contracts related to an interest in land?

Contracts transferring other interests in land are outside the statute of frauds.

Suppose an assignor transfers rights to an assignee under a contract stating "I assign all of my rights under the contract," but nothing is said specifically about a delegation of duties. What would a court likely conclude regarding the assignment of rights and the delegation of duties under such a contract?

Due to its ambiguous language, the contract involves both an assignment of rights and a delegation of duties.

Suppose an assignor transfers rights to an assignee under a contract stating "I assign the contract," but nothing is said specifically about a delegation of duties. What would a court likely conclude regarding the assignment of rights and the delegation of duties under such a contract?

Due to its ambiguous language, the contract involves both an assignment of rights and a delegation of duties.

The ______ Dignity Rule indicates that an agreement between a principal and agent to have the agent contract for the principal must be in writing to be enforceable.

Equal

Which of the following is an accurate statement regarding the relationship between the parol evidence rule and the subsequent modification of an existing, written contract?

Evidence of a written contract's subsequent modification is admissible if it was made after the contract and if it clearly indicates the modification.

Which of the following is an accurate statement regarding the enforceability of an antiassignment clause?

If worded improperly or ambiguously, an antiassignment clause does not effectively limit an assignment.

Which of the following is a distinct advantage of a merger clause?

It reduces the court's guesswork in determining whether the written agreement was in fact intended to be the final statement of an agreement.

Which of the following states does not adhere to the admission exception of the statute of frauds?

Louisiana

______ promises, ______ promises, and suretyship promises refer to agreements in which a third party agrees to pay the debt owed by another party if that other party fails to pay his or her debt.

Secondary; collateral

According to the Uniform Commercial Code (UCC), Section 2-201, which of the following is an incorrect statement about contracts for the sale of goods priced at $500 or more?

Terms other than quantity must be exact and included in the written contracts.

Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and evidence of prior dealings or usage of trade?

The parol evidence rule prohibits the admissibility of evidence of prior dealings or usage of trade.

Which of the following is not a writing element required by the statute of frauds?

The signature of both parties at the end of the contract.

Which of the following is not an element required for a writing to satisfy the statute of frauds?

The signature of the plaintiff suing to enforce the contract.

Under the statute of frauds, which of the following parts of a land is not considered real property?

The tractors used on the land.

Which of the following is an accurate statement regarding the enforceability of a prenuptial agreement?

To be enforceable, a prenuptial agreement must be in writing.

Which of the following is a recognized purpose of the statute of frauds?

To prevent parties from entering into contracts with which they do not agree.

Which of the following is not one of the main purposes of the statute of frauds?

To promote the notion that a person's word is his or her "bond."

True of false: Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the typo was a typo and to setforth the proper term.

True

According to the ______, parol evidence is admissible for the sake of clarification if the evidence addresses prior dealings between the parties or usages of trade in the same business as the parties' field.

Uniform Commercial Code

Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts containing ambiguous terms?

When a contract contains ambiguous terms, the court allows only written evidence to be introduced to clarify the ambiguous terms.

A(n) ______ is a statement made in court, under oath, 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.

admission

When parties include a(n) ______ clause in their contract, the parties are attempting to limit their ability to assign their rights under the contract.

antiassignment

Promissory ______ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.

estoppelContracts that are represented to be the full and final agreement of the parties.

Partial performance is an exception to the statute of ______ 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.

frauds

Promissory estoppel is an exception to the statute of ______.

frauds

A(n) ______ beneficiary is one who unintentionally gains a benefit from a contract between other parties.

incidental

A third-party beneficiary is a(n) ______ beneficiary of a contract between two other parties.

intended

Under the equal dignity rule, contracts that would normally fall under the statute of frauds and need a writing if negotiated by the ______ must be in writing even if negotiated by a(n) ______.

principal; agent

Parties not in ______ of contract usually do not have rights to a contract.

privity

The contracts involving promises to pay a debt that are within the statute of frauds are of a very limited kind. These promises are referred to as ______.

secondary promises, collateral promises, or suretyship promises

According to the statute of frauds, contracts whose performance cannot possibly occur within one year must be in writing. The one-year period begins to run ______.

the day after the contract is created

When a contract consists of both written and oral elements judges make the assumption that

the parties do not intend the written agreement to represent the entire agreement.