Question 1

An easement is a form of real property security given by a borrower to a lender.

Accepted Answer

An easement is a right to use or access someone else's property for a specific purpose, and is not a form of security given by a borrower to a lender. Real property security given by a borrower to a lender includes mortgages and deeds of trust.

Question 2

In a guarantee situation, the guarantor's liability is secondary.

Accepted Answer

In a guarantee situation, the guarantor's liability is secondary to that of the borrower. The borrower is primarily responsible for the debt, and the guarantor is only called upon to pay if the borrower cannot fulfill their obligation.

Question 3

In most states, contracts for the sale of goods for $900 do not require to be in writing.

Accepted Answer

Under the Uniform Commercial Code (UCC), contracts for the sale of goods priced at $500 or more generally require a written agreement to be enforceable. This threshold has been updated in some jurisdictions to $5,000, but $900 would still fall under the requirement for a written contract in most places.

Question 4

In most states, contracts for the lease of goods with payments of $2000 require to be in writing.

Accepted Answer

The Statute of Frauds in most states requires contracts for the lease of goods with payments of $2000 or more to be in writing.

Question 5

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Accepted Answer

Once an oral contract has been executed (meaning both parties have performed their obligations under the contract), the requirement for a written contract under the Statute of Frauds no longer applies. As a result, neither party can use the lack of a written contract as a basis for seeking to rescind the contract.

Question 6

Trees, crops, minerals, and timber are barred from being included in contracts involving interests in real property.

Accepted Answer

Trees, crops, minerals, and timber are considered part of the real property and can therefore be included in contracts involving interests in real property.

Question 7

A life estate will be transferred to another party in the event of the holder's death.

Accepted Answer

A life estate is transferred to another party, called the remainderman, upon the death of the holder (known as the life tenant). The remainderman then becomes the full owner of the property.

Question 8

In a guaranty situation, there is only one contract among three parties.

Accepted Answer

In a guaranty situation, there are two contracts - one between the borrower and the lender, and another between the guarantor and the lender. There are three parties involved - the borrower, the lender, and the guarantor.

Question 9

The primary contract in a guarantee situation is between the debtor and the creditor.

Accepted Answer

In a guarantee situation, the primary contract is indeed between the debtor (the person who owes the money) and the creditor (the person to whom the money is owed), establishing the obligation to pay the debt.

Question 10

The main purpose exception to the Statute of Frauds allows oral collateral contracts to be enforced if there is a monetary benefit to the guarantor.

Accepted Answer

The main purpose exception to the Statute of Frauds allows oral collateral contracts to be enforced if there is a monetary benefit to the guarantor.

Question 11

The transfer of the right to use real property for a specified period of time is known as a lease.

Accepted Answer

A lease is a legal contract that allows one party to use property owned by another party for a designated period of time in exchange for rent payments. The lessee (the person or entity renting the property) has the right to possess and use the property during the lease term, while the lessor (the property owner) retains ownership and control of the property.

Question 12

A guaranty contract between people with no bad credit history can be oral.

Accepted Answer

The answer of A guaranty contract between people with no...

Question 13

Under the Statute of Frauds, any contract that transfers an ownership interest in real property must be in writing to be enforceable.

Accepted Answer

This is a requirement under the statute of frauds for real estate contracts.

Question 14

A lease is an interest in real property given to a lender as security for the repayment of a loan.

Accepted Answer

A lease is not given as security for a loan. It is a contract granting the right to use and occupy real property in exchange for rent payments.

Question 15

Statute of Frauds is a state statute that requires certain types of contracts to be in writing.

Accepted Answer

The statement is correct. The Statute of Frauds exists in many states and requires certain types of contracts, such as contracts for the sale of real property or contracts that cannot be performed within one year, to be in writing in order to be legally enforceable.

Question 16

An easement contract occurs when one person agrees to answer for the debts or duties of another person.

Accepted Answer

An easement contract is not related to the concept of answering for someone else's debts or duties. It is a legal agreement that grants someone the right to use another person's property for a specific purpose, such as access to a road or installation of utilities.

Question 17

Built-in cabinets in a house would be considered as permanent parts of the real property.

Accepted Answer

Built-in cabinets are typically affixed to the walls and floors of a house, making them a permanent fixture of the property. As a result, they are generally considered part of the real property, rather than personal property that can be easily moved or removed.

Question 18

According to the Statute of Frauds, an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

Accepted Answer

The Statute of Frauds requires certain types of contracts, including ones that cannot be performed within one year, to be in writing to be enforceable.

Question 19

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Accepted Answer

The Equal Dignity Rule requires that, if an agent is required to sign a contract to sell property that is covered by the Statute of Frauds, the agent's contract must also be in writing to ensure enforceability.

Question 20

Section 2-201(1)of the Uniform Commercial Code states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.

Accepted Answer

Section 2-201(1) of the Uniform Commercial Code deals with the sale of goods and the requirement for a contract for the sale of goods priced at $500 or more to be in writing. It does not address promises to marry.

Quiz 14: Statute of Frauds and Equitable Exceptions

An easement is a form of real property security given by a borrower to a lender.

In a guarantee situation, the guarantor's liability is secondary.

In most states, contracts for the sale of goods for $900 do not require to be in writing.

In most states, contracts for the lease of goods with payments of $2000 require to be in writing.

If an oral contract that should have been in writing under the Statute of Frauds is already executed, neither party can seek to rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Trees, crops, minerals, and timber are barred from being included in contracts involving interests in real property.

A life estate will be transferred to another party in the event of the holder's death.

In a guaranty situation, there is only one contract among three parties.

The primary contract in a guarantee situation is between the debtor and the creditor.

The main purpose exception to the Statute of Frauds allows oral collateral contracts to be enforced if there is a monetary benefit to the guarantor.

The transfer of the right to use real property for a specified period of time is known as a lease.

A guaranty contract between people with no bad credit history can be oral.

Under the Statute of Frauds, any contract that transfers an ownership interest in real property must be in writing to be enforceable.

A lease is an interest in real property given to a lender as security for the repayment of a loan.

Statute of Frauds is a state statute that requires certain types of contracts to be in writing.

An easement contract occurs when one person agrees to answer for the debts or duties of another person.

Built-in cabinets in a house would be considered as permanent parts of the real property.

According to the Statute of Frauds, an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

Equal dignity rule says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Section 2-201(1)of the Uniform Commercial Code states that a unilateral promise to pay money or property in consideration for a promise to marry must be in writing.