Question 1

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 2

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 statement reflects the principle of "part performance," where courts may enforce an oral contract for the transfer of an interest in land if the party seeking enforcement has made significant changes to their position based on the contract. This is an exception to the Statute of Frauds, which generally requires contracts for the transfer of an interest in land to be in writing. The enforcement is allowed to prevent unjust enrichment of one party at the expense of the other.

Question 3

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 4

The statute of frauds applies to executory contracts only.

Accepted Answer

The statute of frauds requires certain types of executory contracts (contracts not yet fully performed) to be in writing to be enforceable.

Question 5

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 6

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 statement is correct. The parol evidence rule only applies to integrated contracts where the parties have agreed that the written contract is the complete agreement between them.

Question 7

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...

Question 8

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 that contradicts or varies the terms of a written contract. Evidence of fraud, duress, or undue influence is admissible under common law principles and is not barred by the parol evidence rule.

Question 9

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

Under the Uniform Commercial Code (UCC) Section 2-201(3)(b), an oral contract for the sale of goods can be enforceable if the party against whom enforcement is sought admits in court that a contract for sale was made, even though it does not meet the statute of frauds requirement for a written agreement.

Question 10

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 default of another must be in writing or have a sufficient electronic record to be enforceable. Therefore, Mary's promise to pay for her son's car if he defaults on his payments must be in writing or have sufficient electronic evidence to be enforceable.

Question 11

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 12

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 situation falls under the Statute of Frauds, which requires certain types of contracts, including promises to pay another person's debt, to be in writing or have a sufficient electronic record to be enforceable.

Question 13

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 within the statute of frauds requires that promises made by one party to answer for the debt, default, or miscarriage of another party must be in writing to be enforceable, typically involving a third party to whom the promise is made.

Question 14

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

Accepted Answer

This principle is commonly known as the "contra proferentem rule" and is often applied in contract law. It means that in case of a dispute over the interpretation of a contract, the negotiated terms between the parties will be given more weight than the standard pre-printed terms that are typically included in standardized contracts. This is because the negotiated terms reflect the actual intentions and agreement of the parties, while the pre-printed terms are often included as a general template without taking into account the specific needs and preferences of the parties involved.

Question 15

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

The Electronic Signatures in Global and National Commerce Act (E-Sign Act) was indeed enacted by Congress in 2000, and it does make electronic records and signatures as legally valid and enforceable as their paper counterparts for many types of transactions affecting interstate or foreign commerce.

Question 16

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 17

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 18

The parol evidence rule applies to partially written agreements.

Accepted Answer

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

Question 19

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

The test under the one-year provision of the statute of frauds is whether the contract, by its terms, is capable of being completed within one year from the day after the contract is made, regardless of the parties' beliefs or intentions.

Question 20

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

Accepted Answer

The main purpose doctrine is indeed a court-developed exception to the suretyship provision requirement that a promise to answer for the debt of another must be in writing to be enforceable. This doctrine applies when the main purpose or leading object of the promisor is to obtain an economic benefit for themselves, thus allowing an oral promise to serve as a surety.

Quiz 15: Contracts in Writing