Question 1

The statute of frauds applies to executory contracts only.

Accepted Answer

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

Question 2

The parol evidence rule applies to partially written agreements.

Accepted Answer

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

Question 3

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 4

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 5

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

This is known as the admission exception to the statute of frauds under UCC Section 2-201(3)(b). If a party admits to the existence of an oral agreement in court, it can be enforced against that party even without a written contract.

Question 6

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, or the Electronic Signatures in Global and National Commerce Act, was indeed enacted by Congress in 2000 and does make electronic records and signatures valid and enforceable for many types of transactions in or affecting interstate or foreign commerce.

Question 7

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 8

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 applies to cases where one party promises to perform the duty of another party to a third party. This is known as a collateral promise, and it must be in writing in order to be enforceable.

Question 9

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 accurately reflects the doctrine of promissory estoppel, which allows for the enforcement of certain oral contracts even if they do not comply with the traditional formalities of a written contract. If one party has relied on the oral contract to their detriment and enforcing the contract is necessary to prevent injustice, a court may enforce the contract despite the lack of a written agreement.

Question 10

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 "contra proferentem" rule or the rule of reasonable expectations. It is based on the idea that the party who did not draft the contract is less likely to have understood the pre-printed terms and, therefore, the negotiated terms should take precedence.

Question 11

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

According to the Statute of Frauds, promises to pay the debt of another person must be in writing or have an electronic record to be enforceable.

Question 12

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

Accepted Answer

The main purpose doctrine provides an exception to the suretyship provision, allowing a third party's guarantee of a contractual obligation to be treated as a separate contract if the third party's main purpose in making the guarantee was to further their own interests rather than to benefit the original obligor. This exception has been developed and recognized by courts.

Question 13

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 made a promise to Ace and thus created a contract between them. While oral contracts can sometimes be difficult to enforce, in this case, there is a specific promise and consideration (Ace providing materials) involved, making it enforceable.

Question 14

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 15

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 contracts that the parties have agreed to be the complete and final expression of their agreement.

Question 16

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 the contract can possibly be performed within one year, not whether the parties believe it cannot.

Question 17

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 prevents the introduction of extrinsic evidence to vary, contradict, or add to the terms of a fully integrated written agreement. However, evidence of fraud, duress, or undue influence is considered an exception to the rule and is admissible in court.

Question 18

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 19

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 of another must be in writing or have a sufficient electronic record in order to be enforceable. Mary's promise to pay for her son's car if he defaults on payments falls under this category.

Question 20

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.

Quiz 15: Contracts in Writing