Question 1

Most types of contracts are valid without being written.

Accepted Answer

Many contracts can be valid and enforceable even if they are not in writing, as long as they meet the basic requirements of a contract, such as offer, acceptance, and consideration. However, certain types of contracts, like those involving real estate, must be in writing to be enforceable under the Statute of Frauds.

Question 2

A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.

Accepted Answer

A usage of trade refers to a consistent and habitual practice or method that is commonly accepted and followed within a particular industry or locality.

Question 3

Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. If this promise is made orally, it is not enforceable.

Accepted Answer

The promise is not enforceable because it is a conditional promise based on a gift, not a contract with consideration from both parties.

Question 4

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Accepted Answer

A collateral promise is a secondary promise where the promisor agrees to pay the debt only if the principal debtor fails to do so.

Question 5

In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable.

Accepted Answer

The promise does not need to be in writing because it is possible for Arnold to complete his lifetime employment within one year, thus falling outside the Statute of Frauds requirement for written contracts.

Question 6

Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds. At the end of the letter, she types her name but does not sign her signature to it. If David wants to use the letter to satisfy the writing requirement, he may do so.

Accepted Answer

A signature is not required for a writing to satisfy the statute of frauds.

Question 7

A contract to pay for lawn care services costing $1,500 would have to be in writing or in proper electronic form to be enforceable.

Accepted Answer

A contract for services, regardless of the amount, does not need to be in writing to be enforceable unless it falls under specific exceptions like the Statute of Frauds, which typically applies to real estate, goods over a certain amount, or contracts that cannot be performed within a year.

Question 8

A number of courts have used the doctrine of promissory estoppel to displace the requirement of a writing by enforcing oral contracts within the statute of frauds.

Accepted Answer

Promissory estoppel can be used to enforce oral contracts that would otherwise fall under the statute of frauds, as it prevents a party from going back on a promise that the other party has relied upon to their detriment.

Question 9

The statute of frauds has to do with fraud in the inducement of a contract.

Accepted Answer

The statute of frauds is a legal concept that requires certain types of contracts to be in writing to be enforceable, not specifically related to fraud in the inducement.

Question 10

The UCC requires that all contracts for the sale of goods must be in writing or in proper electronic form.

Accepted Answer

The UCC requires that contracts for the sale of goods priced at $500 or more be in writing or in proper electronic form, not all contracts.

Question 11

Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get together and write a memorandum because it is a sale of goods for over $500.

Accepted Answer

A written memorandum is not required for the sale of goods under $500 according to the Statute of Frauds. However, since the sale is over $500, a written agreement is necessary, but it doesn't have to be a memorandum specifically.

Question 12

Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has not begun their manufacture.

Accepted Answer

Under the Uniform Commercial Code (UCC), an oral contract for specially manufactured goods is enforceable only if the seller has made a substantial beginning of their manufacture or commitments for their procurement.

Question 13

The word "parol" literally means release.

Accepted Answer

The word "parol" is derived from the French word "parole," which means "word" or "speech," and is often used in legal contexts to refer to verbal agreements or conditions of release, such as parole in the criminal justice system.

Question 14

In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the bottom and notarized.

Accepted Answer

The statute of frauds requires certain agreements to be in writing and signed by the party to be charged, but it does not require the signature to be at the bottom or the document to be notarized.

Question 15

The statute of frauds generally requires that both parties sign the writing.

Accepted Answer

The statute of frauds typically requires that the writing be signed by the party against whom enforcement is sought, not necessarily both parties.

Question 16

The purpose of the statute of frauds is to prevent the performance of oral contracts.

Accepted Answer

The statute of frauds is intended to prevent fraud and perjury by requiring certain types of contracts to be in writing to be enforceable, not to prevent the performance of oral contracts.

Question 17

The part performance exception to the land contract provision of the statute of frauds in many states requires both that the transferee has paid a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

Accepted Answer

The part performance exception allows enforcement of an oral contract for the sale of land if the buyer has taken significant steps, such as paying part of the price and taking possession or making improvements, indicating the existence of a contract.

Question 18

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

Accepted Answer

The passage states that the writing requirements under contract and sales law have been a significant impediment to e-commerce.

Question 19

The UCC statute of frauds requires that the writing include all agreed-upon terms.

Accepted Answer

The UCC statute of frauds requires that the writing include a sufficient indication that a contract has been made, but not necessarily all agreed-upon terms.

Question 20

Parol evidence refers only to any oral evidence that is outside an integrated written contract and not incorporated into it, either directly or by reference.

Accepted Answer

Parol evidence refers to both oral and written evidence that is outside an integrated written contract and not incorporated into it.

Quiz 15: Contracts in Writing