Question 1

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company,I will."

Accepted Answer

The answer of An example of language creating a suretyship...

Question 2

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court,even though the statute of frauds requires the agreement in writing.

Accepted Answer

According to UCC Section 2-201(3), an oral agreement for the sale of goods can be enforceable against a party who admits to the contract in court, even if the agreement was not in writing as required by the statute of frauds.

Question 3

Tom's bank is threatening to repossess his car.Tom's mother notifies the bank that she promises to pay the bank if Tom defaults on the loan.This promise must be in writing or have a sufficient electronic record to be enforceable.

Accepted Answer

This statement is true according to the Statute of Frauds, which requires certain contracts to be in writing or have an electronic record in order to be enforced in court.

Question 4

In order to induce a car dealer to sell her son a car on credit,Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership.Mary's promise must be in writing or have a sufficient electronic record.

Accepted Answer

According to the statute of frauds, promises to answer for the debt or obligation of another person must be in writing or have a sufficient electronic record to be enforceable. Mary's promise to pay for her son's car in case of default falls under this category.

Question 5

The suretyship provision rule within the statute of frauds applies to cases involving one party promising to perform the duty of another party to yet a third party.

Accepted Answer

The suretyship provision rule within the statute of frauds does apply to cases where one party promises to perform the duty of another party to a third party. This means that the promise of the surety must be in writing in order to be enforceable.

Question 6

Abco Corp.is building a new office tower.Ace Plumbing Supplies refuses to provide plumbing materials on credit to the plumbing subcontractor on the building.Abco promises Ace that it will pay for the materials if the subcontractor does not.Abco's oral promise is enforceable.

Accepted Answer

Abco's oral promise is enforceable under the "main purpose rule" or "leading object rule," which states that if the main purpose of the guarantor (in this case, Abco) in making the guarantee is to secure a personal benefit, the promise does not need to be in writing to be enforceable.

Question 7

Under the majority rule,the test under the one-year provision of the statute of frauds is whether it is likely that the contract will be completed within one year.

Accepted Answer

The test under the one-year provision of the statute of frauds is whether the contract is capable of being completed within one year from the day after the contract is made, not whether it is likely to be completed within that timeframe.

Question 8

In interpreting a contract,terms which have been separately negotiated are given priority over standardized pre-printed terms.

Accepted Answer

This is known as the principle of contra proferentem, which states that any ambiguity or inconsistency in a contract should be interpreted against the party who drafted the contract (usually the party providing the pre-printed standardized terms) and in favor of the party who did not draft it (usually the other contracting party who negotiated specific terms). This principle helps ensure that both parties' intentions are reflected in the contract and prevents the party with more bargaining power from taking advantage of the other party.

Question 9

E-Sign was enacted by Congress in 2000 and makes electronic records and signatures valid and enforceable across the United States for many types of transactions in or affecting interstate or foreign commerce.

Accepted Answer

E-Sign was indeed enacted by Congress in 2000 and established the legal framework for accepting electronic signatures under federal law.

Question 10

On March 20,Alan orally agrees to work for Trower,Inc.for a period of one year commencing on June 1.No writing is necessary here,because the contract can be performed within one year.

Accepted Answer

The answer of On March 20,Alan orally agrees to work...

Question 11

An employment contract that is in any way capable of being performed within one year from the date of the agreement falls within the requirements of the statute of frauds.

Accepted Answer

The statute of frauds requires certain types of contracts to be in writing to be enforceable, but it generally exempts contracts that can be fully performed within one year from the date of the agreement.

Question 12

Under the majority rule,the test under the one-year provision of the statute of frauds is whether the parties believe that the contract cannot be performed within one year.

Accepted Answer

Under the majority rule, the test under the one-year provision of the statute of frauds is whether it is possible to perform the contract within one year, not whether the parties believe it cannot be performed within one year.

Question 13

The parol evidence rule applies to partially written agreements.

Accepted Answer

The answer of The parol evidence rule applies to partially...

Question 14

The main purpose doctrine is a court-developed exception to the suretyship provision.

Accepted Answer

The main purpose doctrine is a court-developed exception to the suretyship provision, making the statement true.

Question 15

The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense of fraud,duress,or undue influence.

Accepted Answer

The parol evidence rule only applies to evidence of prior or contemporaneous oral or written agreements that would contradict, vary, or add to the terms of a written contract. It does not apply to evidence of fraud, duress, or undue influence, which can be used to establish a defense to the enforcement of a contract.

Question 16

The statute of frauds applies to executory contracts only.

Accepted Answer

The answer of The statute of frauds applies to executory...

Question 17

Under the UCC parol evidence rule,usage of trade will take priority over specific provisions in a written contract.

Accepted Answer

The UCC parol evidence rule generally prohibits the use of prior or contemporaneous external evidence (such as usage of trade) to contradict or modify the terms of a written contract, meaning specific provisions in the contract take priority.

Question 18

An oral contract for the transfer of an interest in land may be enforced if the party seeking enforcement has so changed his position in reasonable reliance on the contract that a court can prevent injustice only by enforcing the contract.

Accepted Answer

This is known as the doctrine of equitable estoppel, which allows for enforcement of a contract based on the principle of fairness and preventing injustice. However, it is important to note that most jurisdictions require contracts for the transfer of an interest in land to be in writing to be enforceable under the Statute of Frauds.

Question 19

The Uniform Electronic Transactions Act,which has been adopted by all of the states and the District of Columbia,gives full effect to electronic contracts and develops a uniform legal framework for their implementation.

Accepted Answer

While the Uniform Electronic Transactions Act (UETA) has been adopted by the majority of states to give legal effect to electronic contracts and create a uniform framework for their use, it has not been adopted by all states. For example, New York and Illinois have not adopted UETA, opting instead for their own laws governing electronic transactions.

Question 20

The parol evidence rule applies only to integrated contracts,meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Accepted Answer

The parol evidence rule only applies to integrated contracts, which are agreements in which the parties have agreed to the written agreement as the complete statement of their agreement. This means that any prior or contemporaneous oral or written agreements or negotiations are generally not admissible to contradict or supplement the terms of the written contract.

Quiz 15: Contracts in Writing