Question 1

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by

Accepted Answer

Both parties, Dick's and REW, are bound by the terms of the oral contract if it can be proved. The manufacturer of the mixer and any third party with a material interest are not parties to the contract and therefore cannot enforce it.

Question 2

Ed orally agrees with Far East Restaurant to provide delivery service to its customers for six months. This contract is enforceable by

Accepted Answer

Since Ed and Far East have a mutual agreement, they both have the ability to enforce the contract. Third parties, such as Far East customers, do not have the standing to enforce the contract. Therefore, option A and C are incorrect. Option D is also incorrect as only Far East cannot solely enforce the contract as Ed also has an interest.

Question 3

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

Accepted Answer

The answer of Pumps, Inc., agrees to assume a debt...

Question 4

Marketing, Inc., and Nature's Foods Corporation (NFC) discuss a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Marketing begins to perform, but Nature's refuses to pay. Between Marketing and Nature's, the e-mails are

Accepted Answer

The "signed" e-mails that summarize the terms on which they agree constitute a written contract, even if they never physically signed a hard copy document. Therefore, Marketing has a valid contract claim against Nature's for breach of contract.

Question 5

Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if

Accepted Answer

The promise must be in writing if Nate promises to pay only if Polly does not pay, as it falls under the statute of frauds which requires certain promises to be in writing to be enforceable, particularly when it involves a promise to pay the debt of another.

Question 6

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by

Accepted Answer

Oral contracts for services that cannot be performed within one year must be in writing to be enforceable under the Statute of Frauds. Since the contract between ActioNOW and Becca is for eighteen months and is oral, it is not enforceable.

Question 7

Eleanor offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanor's son Glen. This promise is enforceable

Accepted Answer

The answer of Eleanor offers Flossy the amount of an...

Question 8

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide security services for Hedge's offices for as long as Hedge needs them. This contract may be enforceable by

Accepted Answer

The contract is enforceable by either party because it is an oral agreement for services that do not specify a duration exceeding one year, thus not falling under the Statute of Frauds.

Question 9

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of

Accepted Answer

Under the Statute of Frauds, a contract for the sale of goods over $500 requires a written agreement to be enforceable. Therefore, only the tablet, which costs $500, necessitates a writing.

Question 10

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

Accepted Answer

Since three boxes were already delivered and accepted, the contract can be enforced only to the extent of the three accepted boxes. The repudiation of the contract by Physicians Clinic after accepting the delivery of three boxes amounts to a breach of contract, and Quality Medical can seek damages for the remaining four boxes. However, since the order was placed by phone and there is no written evidence, enforcing the contract beyond what has been delivered and accepted may be difficult.

Question 11

Colin and Delta Water Company enter into an oral contract under which Delta agrees to provide Colin with lifetime employment. This contract may be enforceable by

Accepted Answer

Lifetime employment contracts, although oral, can be enforceable if there is sufficient evidence to prove the agreement's existence and terms. Both parties involved in the contract, Colin and Delta, could potentially enforce the contract if they can demonstrate that the agreement was indeed made.

Question 12

Fact Pattern 16-1
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 16-1. Between Grain and Hearty, this contract is most likely enforceable against​

Accepted Answer

Grain and Hearty can be held at least to the extent of the performance because Grain's fax to Hearty outlining the terms of the contract creates a written contract, even without a signature. However, if there were any terms not discussed in the fax, they may not be enforceable without further agreement or negotiation.

Question 13

Rough Canyon Adventures, Inc., and Sturdy Stuff Inc. enter into an oral contract for Sturdy's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by

Accepted Answer

An oral contract for the sale of goods for over $500 is not enforceable under the Statute of Frauds, which requires such contracts to be in writing. Therefore, the contract between Rough Canyon Adventures, Inc. and Sturdy Stuff Inc. is not enforceable by either party or any third party.

Question 14

Retail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify

Accepted Answer

The quantity is a necessary element of any sales contract, and all other terms (such as price and payment) depend on this important aspect. The source of payment and the terms of payment may also be included for clarity, but they are not essential for the contract's enforceability.

Question 15

Flo agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

Accepted Answer

Under the "main purpose" rule, a promise to assume the debt of another person must primarily benefit the person making the promise. In this case, Flo is assuming the debt owed by Guitars Inc., so it must primarily benefit Flo.

Question 16

Fact Pattern 16-1
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 16-1. The transaction between Grain and Hearty falls within the provision of the Statute of Frauds involving

Accepted Answer

The answer of Fact Pattern 16-1
Grain Co-op, LLC and Hearty...

Question 17

Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract

Accepted Answer

The promise to pay for another's debt must be in writing to be enforceable under the Statute of Frauds, as it is a collateral promise.

Question 18

Fact Pattern 16-1
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 16-1. Between Grain and Hearty, there is​

Accepted Answer

The faxed memo on Grain's letterhead summarizes the points on which they agreed, including a two-year term, which indicates a written contract.

Question 19

Hal's Hardware Inc. and Ideal Tools Corporation sign a written contract for a sale of goods. To be enforceable, this written contract must include

Accepted Answer

A quantity term is necessary to specify exactly what is being sold in the contract. A title, date, and the parties' contact information may be helpful but are not necessary for enforceability.

Question 20

Daredevil Rides Inc. owes debts to Equipment Repair Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by

Accepted Answer

The agreement between Equipment and Daredevil to assume the debt owed to Food Supplies is enforceable by all three parties involved: Daredevil, Equipment, and Food. The agreement allows Daredevil to avoid legal action from Food, and Equipment to potentially receive some benefit from assuming the debt. Therefore, all three parties have a stake in the enforceability of the agreement.

Quiz 16: The Writing Requirement in Our Digital World