Deck 13: Contracts in Writing and Third-Party Contracts

Question 1

When a court deems a contract integrated,parol evidence is generally inadmissible.

Answer 1

True
Explanation: An integrated contract is a written contract intended to be the complete and final representation of the parties' agreement.When a court deems a contract integrated,unless an exception applies,parol evidence is inadmissible.

Question 2

The statute of frauds serves to protect promisors from poorly written contracts.

Answer 2

False
Explanation: The statute of frauds serves to protect promisors from poorly considered oral contracts by requiring certain contracts to be in writing.

Question 3

Primary obligations to pay a debt must be in writing to be enforceable.

Answer 3

False
Explanation: Primary obligations to pay a debt are not within the statute of frauds and,therefore,need not be in writing to be enforceable.Secondary obligations,however,are within the statute of frauds and need to be in writing.A secondary obligation arises when a party outside a primary agreement promises to fulfill one of the original party's (the primary debtor's)obligations if the original party (the primary debtor)fails to fulfill his or her obligation.

Question 4

Whenever a written agreement under the statute of frauds contains a serious and obvious typographical error,parol evidence is inadmissible to correct the error.

Question 5

When an assignor transfers her rights to an assignee,the assignor legally retains all rights she has to collect on the contract.

Question 6

A prenuptial agreement is an agreement two parties enter into before the marriage that states the date certain on which the marriage relationship will effectively terminate.

Question 7

Subrogation refers to an agreement 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.

Question 8

There is no federal statute of frauds.

Question 9

The Uniform Commercial Code requires that contracts for the sale of goods for $500 or more must be in writing in order to be enforceable.

Question 10

Partial performance can override the statute of fraud's requirement for a written agreement.

Question 11

The statute of frauds relates to fraudulent contracts.

Question 12

A delegation occurs when a party to a contract transfers her rights to a contract to a third party.

Question 13

In the context of the parol evidence rule,the word "parol" means the release of a prisoner temporarily for a special purpose or permanently before the completion of a sentence,on the promise of good behavior.

Question 14

The parol evidence rule is a common law rule that specifically addresses the admissibility of written evidence as it relates to oral contracts.

Question 15

Although a mutual promise to marry falls within the statute of frauds,prenuptial agreements do not.

Question 16

If the buyer in an alleged contract for the sale of land has paid any portion of the sales price and either has begun to permanently improve the land or has taken possession of the land,the courts will consider the contract partially performed,and this partial performance will amount to proof of the contract.

Question 17

Under the respondeat superior rule,contracts that 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.

Question 18

The party who receives the rights of another party in a contract is called a delegatee.

Question 19

Mortgages and leases need not be in writing in order to be enforceable.

Question 20

The statute of frauds requires that both contracting parties sign the written agreement.

Question 21

Which of the following is an incorrect statement regarding the assignment of claims in Russia?

A)The assignment of rights,or "assignment of claims," in Russia is highly regulated by the Russian court of equity.
B)Russian law does not address the assignment of a contract in the same manner as the United States.
C)Economic or monetary rights of the assignor may be transferred to another person.
D)Alimony rights may not be assigned to another person.
E)Assignments must be in writing.

Question 22

The Uniform Commercial Code requires assignments to be in writing when the amount being assigned is less than $500.

Question 23

Which of the following is an incorrect statement regarding the statute of frauds and promises made in consideration of marriage?

A)Agreements regarding marriage in which one party is gaining something other than a return on his or her promise to marry are within the statute of frauds and must be in writing.
B)Mutual promises to marry fall within the statute of frauds.
C)Prenuptial agreements fall within the statute of frauds.
D)A prenuptial agreement is not automatically enforceable just because it is in writing.
E)Both that mutual promises to marry fall within the statute of frauds and that a prenuptial agreement is not automatically enforceable just because it is in writing.

Question 24

A donee beneficiary is a type of incidental beneficiary.

Question 25

Which of the following types of contracts does not fall within the statute of frauds?

A)Contracts not performed within six months
B)Promises made in consideration of marriage
C)Contracts for one party to pay the debt of another party if the initial party fails to pay
D)Agreements related to an interest in land
E)Contracts for the sale of goods totaling more than $500

Question 26

The statute of frauds is intended to prevent unreliable ________ evidence from interfering with a contractual relationship.

A)hearsay
B)oral
C)documentary
D)relevant
E)written

Question 27

Both assignments and delegations transfer rights to a contract.

Question 28

The statute of frauds imposes on parties the need to carefully consider the terms,agree to them,write them down,and ________.

A)meet with a lawyer to discuss the terms
B)continue to negotiate the contract
C)orally agree to the terms
D)sign the agreement
E)file the agreement with the court

Question 29

In ________,the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

A)1555
B)1677
C)1770
D)1776
E)1865

Question 30

Which of the following was the result on appeal in Heritage Constructors,Inc.v.Chrietzberg Electric,Inc.and Richard Marc Chrietzberg,the case in the textbook involving a wastewater treatment plant improvement project in which the project's electrical work involved the use of a subcontractor,with the general contractor suing the subcontractor for withdrawing its bid?

A)That the agreement between the contractor and the subcontractor fell within the statute of frauds and satisfied it; that the subcontractor was not liable for promissory estoppel damages; and that the subcontractor was not responsible for negligent misrepresentation damages.
B)That the agreement between the contractor and the subcontractor fell within the statute of frauds and satisfied it; that the subcontractor was liable for promissory estoppel damages; and that the subcontractor was not responsible for negligent misrepresentation damages.
C)That the agreement between the contractor and the subcontractor fell within the statute of frauds and satisfied it; that the subcontractor was liable for promissory estoppel damages; and that the subcontractor was responsible for negligent misrepresentation damages.
D)That the agreement between the contractor and the subcontractor fell within the statute of frauds but failed to satisfy it; that the subcontractor was liable for promissory estoppel damages; and that the subcontractor was responsible for negligent misrepresentation damages.
E)That the agreement between the contractor and the subcontractor fell within the statute of frauds but failed to satisfy it; that the subcontractor was not liable for promissory estoppel damages; and that the subcontractor was not responsible for negligent misrepresentation damages.

Question 31

With regard to the statute of frauds and contracts whose terms prevent possible performance within one year,which of the following is an incorrect statement?

A)The one-year period begins to run the day after the contract is created.
B)A contract does not come within the statute of frauds if it could be completed within one year,even if it is highly unlikely that a contract will be completed within one year.
C)A contract for lifetime employment does not have to be in writing in order to be enforceable.
D)Contracts whose performance,based on the terms of the contract,could not possibly occur within one year fall within the statute of frauds.
E)The one-year period begins to run the day the contract is scheduled to begin.

Question 32

An incidental beneficiary is one who intentionally gains a benefit from a contract between other parties.

Question 33

In order for an assignment to be valid,an assignee must agree to accept the assigned rights.

Question 34

Which of the following is an incorrect statement regarding the statute of frauds?

A)It relates to fraudulent contracts.
B)It does not address illegal contracts.
C)It does not exist at the federal level.
D)The statute requires that certain contracts be in writing.
E)Some states have statutes of frauds created by judicial decision rather than legislation.

Question 35

Which of the following is an incorrect statement regarding written contracts?

A)Disputes are easier to settle when contractual terms are solidified in writing.
B)The moment of writing allows both parties to reconsider terms and ensure what they desire.
C)In general,written contracts aid in the conduct of smooth business contracts.
D)The idea of requiring a writing comes from the English Act for the Prevention of Frauds and Perjuries
E)All contracts must be in writing in order to be enforced.

Question 36

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.

Question 37

An agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property is known as a(n)________.

A)preliminary agreement
B)planned contract
C)separation agreement
D)prenuptial agreement
E)arranged marriage

Question 38

Pursuant to the equitable theory of post hoc ergo propter hoc,an intended beneficiary can enforce her rights to a contract before the rights vest.

Question 39

A donee beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.

Question 40

Under the Uniform Commercial Code,contracts for the sale of goods totaling ________ or more must be in writing.

A)$100
B)$200
C)$500
D)$250
E)$20

Question 41

Oral contracts for ________ goods are enforceable even if they normally would have to be in writing.

A)retail
B)wholesale
C)collateral
D)consumer
E)customized

Question 42

________ are debts incurred in an initial contract.

A)Secondary obligations
B)Primary obligations
C)Novation agreements
D)Collateral promises
E)Suretyship promises

Question 43

Which of the following may constitute a writing under the Uniform Commercial Code?

A)Faxes and e-mails,but not invoices or bills of lading
B)Faxes and e-mails,but not sales slips or checks
C)Invoices and bills of lading,but not sales slips or checks
D)Sales slips and checks,but not invoices or bills of lading
E)Faxes,e-mails,invoices,bills of lading,sales slips,and checks

Question 44

Which of the following parties must sign a document coming within the statute of frauds?

A)The party against whom action is sought
B)The offeror only
C)The offeree only
D)Only a person who has agreed to pay the debt of another
E)Any party to the contract

Question 45

Which of the following are recognized exceptions to the statute of frauds?

A)Admission,preliminary performance,and promissory estoppel
B)Denial,preliminary performance,and promissory estoppel
C)Denial,partial performance,and beneficial reliance
D)Admission,partial performance,and promissory estoppel
E)Admission,partial performance,and beneficial reliance

Question 46

Which of the following was the result on appeal in the Shelby's,Inc.v.Sierra Bravo,Inc.case referenced in the textbook involving the issue of whether an agreement to deposit debris and soil on land comes within the statute of frauds?

A)The court ruled that the agreement did not involve an interest in land and did not come within the statute of frauds.
B)The court ruled that the agreement did involve an interest in land,that it therefore came within the statute of frauds,and that an oral agreement was not sufficient.
C)The court ruled that the agreement did not involve an interest in land but,nevertheless,applied the statute of frauds in order to prevent injustice.
D)The court ruled that the agreement was within the statute of frauds but that an oral agreement was sufficient.
E)The court ruled that based on longstanding judicial precedent within the state of Missouri,including a recent decision by the Missouri Supreme Court,the statute of frauds does not apply to contracts for the sale of land.

Question 47

Which of the following is a false statement regarding the main-purpose rule as it relates to a promise to pay someone else's debt?

A)The main-purpose rule is an exception to the general rule that a promise to pay someone else's debt needs to be in writing.
B)If the main purpose for incurring a secondary obligation is to obtain a personal benefit,the promise does not need to be in writing.
C)If the main purpose for incurring a primary obligation is to obtain a personal benefit,the promise does not fall within the statute of frauds and must be in writing.
D)The main-purpose rule assumes that a party attempting to achieve a personal benefit will not back out of the agreement; thus,there is no need for a written record of the agreement.
E)The court's job is to use the context surrounding the agreement to determine the third party's main purpose for entering the agreement.

Question 48

Which of the following is a false statement regarding the statute of frauds and an interest in land?

A)The statute is intended to prevent oral claims to the existence of a contract for the sale of land.
B)The statute requires a writing as evidence of a contract to sell land.
C)Anything attached to land,such as trees or buildings,is considered real property under the statute of frauds.
D)Mortgages of land are within the statute of frauds.
E)Leases of land are not within the statute of frauds.

Question 49

Which of the following is true regarding a signature on a document falling within the statute of frauds?

A)There is no requirement of any signature of either party to satisfy the statute of frauds.
B)Any party required to sign must sign at the beginning of the document.
C)Any party required to sign must sign at the end of the document.
D)Any party required to sign must sign both at the beginning and at the end of the document.
E)So long as it is meant as a signature,a party required to sign may sign at any place on the document.

Question 50

Which of the following are considered an interest in land within the statute of frauds?

A)Promises to sell crops annually.
B)Agreements between parties for profit sharing from the sale of real property.
C)Boundary disputes that have been settled through the use of land.
D)Promises to sell crops annually,agreements between parties for profit sharing from the sale of real property,and boundary disputes that have been settled through the use of land.
E)None of these.

Question 51

Which of the following sections of the Uniform Commercial Code addresses the requirement of a writing when the total price for a sale of goods is $500 or more?

A)2-201
B)1-101
C)3-102
D)2-305
E)4-203

Question 52

A statement made in court,under oath,or at some stage during a legal proceeding in which a party against whom a lawsuit has been brought admits that an oral contract existed,even though the contract was required to be in writing,is called a(n)________.

A)admission
B)submission
C)deposition
D)interrogatory
E)confirmation

Question 53

Under the ________ rule,a contract that 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.

A)suretyship
B)equal dignity
C)assignment
D)delegation
E)substantial performance

Question 54

If the buyer in an oral contract for the sale of land has paid any portion of the sale price,has begun to permanently improve the land,or has taken possession of the land,the courts will consider the contract partially performed under the theory of ________.

A)substantial performance
B)partial performance
C)sales substantiation
D)legal admission
E)action against interest

Question 55

Within the statute of frauds,"land" encompasses not only the land and soil itself but anything ________ to the land.

A)relating
B)adjacent
C)contracted
D)attached
E)pertinent

Question 56

All states except ________ adhere to the admission exception to the statute of frauds.

A)Hawaii and Alaska
B)Louisiana and New York
C)Louisiana and California
D)Kentucky and Florida
E)North Carolina and Montana

Question 57

Which of the following is a term for contracts within the statute of frauds involving promises to pay the debt of another if the other party fails to pay?

A)Secondary promises
B)Primary promises
C)Novation agreements
D)Third-party debts
E)Pecuniary assignments

Question 58

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

A)Promissory estoppel
B)Substantial estoppel
C)Substantial performance
D)Frustration of purpose
E)Commercial impracticability

Question 59

In contracts other than those governed by the Uniform Commercial Code,which of the following are required elements for a writing to be considered sufficient under the statute of frauds?

A)Identification of the parties to the contract.
B)Identification of the subject of the agreement.
C)Identification of the law applicable to the contract.
D)Identification of the parties to the contract,identification of the subject of the agreement,and identification of the law applicable to the contract.
E)Identification of the parties to the contract and the subject of the agreement,but not the law applicable to the contract.

Question 60

Which of the following is needed in order to satisfy the Uniform Commercial Code's requirement for a written document?

A)The contract or memorandum needs only to state the price of the goods.
B)The contract or memorandum needs only to state the quality of the goods.
C)The contract or memorandum needs only to state the quantity of goods to be sold.
D)The contract or memorandum needs to state the price of the goods and the quality of the goods,but not the quantity to be sold.
E)The contract or memorandum needs to state the price of the goods,the quality of the goods,and the quantity of goods to be sold.

Question 61

Which of the following statements is false regarding the rights of assignees and assignors?

A)Assignees essentially fill in for the assignor as the legal recipient of contractual duties.
B)Assignees acquire the same rights as those of the assignor.
C)Assignees are entitled to greater contractual protections than those afforded assignors.
D)The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor.
E)When an assignor transfers rights to an assignee,the assignor legally gives up all rights she previously had to collect on the contract.

Question 62

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

A)adhesion
B)addendum
C)parol
D)merger
E)consolidation

Question 63

Sally agrees to mow Paul's yard for $300 for the summer.Paul wishes to assign the contract to his grandmother.Sally objects because Paul's yard is very small while the grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Sally and Paul?

A)Sally will win because Paul's attempted assignment would increase the duties to which she agreed.
B)Sally will win because all assignments are invalid without the obligor's consent.
C)Sally will win unless Paul paid her the $300 in advance.
D)Paul will win because he may validly assign the contract without Sally's consent.
E)Paul will win so long as he tells Sally about the assignment prior to the time she begins performance.

Question 64

What is a purpose of the parol evidence rule?

A)To restrict oral evidence from being admitted that supports an agreement in its written form.
B)To restrict written evidence from being admitted that supports an agreement in its written form.
C)To restrict oral and written evidence from being admitted that supports an agreement in its written form.
D)To restrict hearsay from being admitted that supports or contradicts an agreement in its written form.
E)To restrict evidence from being admitted that substantially contradicts an agreement in its written form.

Question 65

What is the term for the third party who receives an assignment of contract rights?

A)Principal
B)Incidental beneficiary
C)Delegatee
D)Assignor
E)Assignee

Question 66

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement?

A)When a court determines that a written agreement represents a complete and final version of the agreement.
B)When a court determines that a written agreement does not represent a complete and final version of the agreement.
C)When a court determines that there is disagreement between the parties over performance of the agreement.
D)When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable.
E)When a court determines that neither party failed to obtain counsel to determine if signing the agreement was advisable.

Question 67

What is the term for a party to a contract who transfers her rights under the contract to a third party?

A)Donor beneficiary
B)Debtor beneficiary
C)Delegator
D)Assignor
E)Assignee

Question 68

Which of the following is a contractual party who agrees to receive something from the other party?

A)Obligor
B)Obligee
C)Assignor
D)Assignee
E)Delegatee

Question 69

Which of the following is a false statement regarding the parol evidence rule?

A)It is not limited to spoken words.
B)It is a rule of evidence.
C)It relates to substantive legal issues.
D)It is an amalgamation of different rules and conditions.
E)It applies to writings created at the same time as the written agreement.

Question 70

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

A)Contracts that have been subsequently modified
B)Contracts conditioned on orally agreed-on terms
C)Contracts that are not final as they are part written and part oral
D)Contracts with ambiguous terms
E)Contracts that are complete

Question 71

Which of the following is an accurate description of the parol evidence rule?

A)The parol evidence rule states that oral evidence of an agreement made after a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
B)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is admissible when the parties intend the written agreement to be the complete and final version of their agreement.
C)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
D)The parol evidence rule states that oral evidence of an agreement made prior to,but not contemporaneously with,a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
E)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties did not intend the written agreement to be the complete and final version of their agreement.

Question 72

Which of the following is a correct statement regarding form requirements for a valid assignment?

A)In order for an assignment to be valid,a UCC 2-301 compliance statement is required.
B)In order for an assignment to be valid,a UCC 4-305 perfection statement is required.
C)In order for an assignment to be valid,a Business Form 2-547 must be executed by the assignor.
D)In order for an assignment to be valid,a Business Form 4-298 must be executed by the obligor (the other party to the original contract who owes a duty to the assignee).
E)No form is required for an assignment to be valid.

Question 73

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

A)Assignment
B)Rescission
C)Delegation
D)Novation
E)Accord and satisfaction

Question 74

Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?

A)When the only part of the contract left to be fulfilled is the payment.
B)When the sale of goods is involved.
C)When no more than one-half of the contractual duties have been performed.
D)When no more than three-fourths of the contractual duties have been performed.
E)When at least one-third of the contractual duties have been performed.

Question 75

Which of the following is a false statement regarding a condition precedent?

A)When an entire contract is conditioned on something occurring first,that first thing is known as a condition precedent.
B)The parol evidence rule does not apply to evidence of a condition precedent.
C)Evidence of the existence of a condition precedent agreed to orally is inadmissible.
D)A contract is not modified by evidence of the existence of a condition precedent.
E)A contract's enforceability is called into question by evidence of the existence of a condition precedent.

Question 76

Which of the following is a contractual party who agrees to do something for the other party?

A)Obligor
B)Obligee
C)Assignor
D)Assignee
E)Delegator

Question 77

Which of the following is true regarding oral assignments?

A)Assignments may not be made orally.
B)The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $5,000.
C)Assignments are not covered by the statute of frauds.
D)The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $500.
E)The Uniform Commercial Code requires that an assignment of a right to receive goods be in writing when the value of the goods is $500 or more,and that an assignment of a right to receive a service be in writing when the value of the service is $1,000 or more.

Question 78

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.

A)admission against interest
B)statute of frauds
C)parol evidence
D)admission under oath
E)admission under oath or affirmation

Question 79

One way parties can indicate their desire to create an integrated contract is through the use of a(n)________ clause.

A)executory
B)merger
C)adhesion
D)condition subsequent
E)addendum

Question 80

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?

A)Parol evidence agreements
B)Integrated contracts
C)Adhesion contracts
D)Bilateral contracts
E)Invitations to negotiate