Question 1

Section 2-201(1) of the Uniform Commercial Code (UCC) is the basic Statute of Frauds provision for ________.
A) sales contracts
B) lease contracts
C) all contracts involving interests in real property
D) mortgage contracts

Accepted Answer

Section 2-201(1) of the UCC deals specifically with sales contracts and requires that any contract for the sale of goods for $500 or more must be in writing to be enforceable. This provision does not apply to leases, contracts involving interests in real property, or mortgage contracts.

Question 2

Santos told his friend Ernesto that he would sell Ernesto his car for $5,000. However, on the day of the sale, Santos refused to sell the car for the agreed-upon price and demanded more money. Which of the following statements is true in this scenario?
A) Ernesto can sue Santos as their oral sales contract was binding.
B) Santos has violated Section 2-201(1) of the Uniform Commercial Code (UCC).
C) The oral contract to trade a car for $5,000 is not binding, according to the Uniform Commercial Code (UCC).
D) Santos has violated Section 2A-201(1) of the Uniform Commercial Code (UCC).

Accepted Answer

The oral contract to trade a car for $5,000 is not binding, according to the Uniform Commercial Code (UCC).

Question 3

Section 2A-201(1) of the Uniform Commercial Code (UCC) states which of the following?
A) All lease contracts must be in writing.
B) Lease contracts involving payments of $1,000 or more must be in writing.
C) All sales contracts must be in writing.
D) Sales contracts involving payments of $500 or more must be in writing.

Accepted Answer

Section 2A-201(1) of the Uniform Commercial Code (UCC) specifically addresses lease contracts, stating that lease contracts involving payments of $1,000 or more must be in writing to be enforceable. This is part of the UCC's statutes that regulate commercial transactions, including leases and sales of goods.

Question 4

If Johnny made an oral contract to sell Peter his truck for $15,000, this contract must be enforced.

Accepted Answer

While oral contracts are generally considered legally binding, the sale of a vehicle for $15,000 typically requires a written contract according to the Statute of Frauds. Without a written contract, it may be difficult to enforce the terms of the agreement.

Question 5

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 direct economic benefit to the guarantor, not necessarily just a monetary benefit. This exception is based on the notion that the guarantor's primary motivation for entering into the agreement was to benefit themselves, rather than simply to aid the primary obligor. Therefore, if the guarantor receives some sort of benefit from the transaction beyond just moral obligation or good faith, the oral collateral contract may be enforceable.

Question 6

Section 2-201(1) of the Uniform Commercial Code (UCC) 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 (UCC) is actually the Statute of Frauds provision that requires certain contracts to be in writing to be enforceable, primarily focusing on the sale of goods over $500, not promises in consideration for marriage.

Question 7

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.
A) Promissory estoppel
B) Merger clause
C) Main purpose exception
D) Leading object exception

Accepted Answer

Promissory estoppel is a legal principle that allows for the enforcement of certain promises, even when they are not part of a formal contract, to prevent injustice. It can apply to situations where oral agreements should have been in writing, especially when one party has relied on the promise to their detriment.

Question 8

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30,000? Suggest an alternative and explain how it is beneficial to an oral contract.

Accepted Answer

The answer of Why is it a bad idea for...

Question 9

The doctrine of part performance is an exception to the Statute of Frauds' writing requirement that courts can apply in order to achieve justice in situations where it is not possible to return the parties to their status quo.

Accepted Answer

The doctrine of part performance is indeed an exception to the Statute of Frauds' writing requirement that courts can use to resolve situations where it is not feasible to restore the parties to their original state.

Question 10

Which of the following statements is true of signature on a written contract?
A) The contract should be signed by the party who seeks enforcement.
B) The signature of the person who is enforcing the contract is not necessary.
C) The signature must appear at the end of the writing.
D) A person's nickname or initials are not binding legal signatures.

Accepted Answer

A contract is typically enforceable if it is signed by the party against whom enforcement is sought, not necessarily by the person enforcing it.

Question 11

Tom and Jerry agreed orally that Tom would sell his condominium to Jerry. It was agreed that Jerry would pay Tom $1,000 per month for 8 years as well as paying property taxes and maintenance costs for the condominium. Four years into the arrangement, the condominium had increased in value significantly, and Tom wanted to rescind the oral agreement. What doctrine could be applied by a court to reach justice? Explain the doctrine.

Accepted Answer

The answer of Tom and Jerry agreed orally that Tom...

Question 12

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

Accepted Answer

The doctrine of part performance does allow the court to order specific performance of an oral contract for the sale of land or transfer of another interest in real property if it is necessary to avoid injustice.

Question 13

If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable.

Accepted Answer

According to the Statute of Frauds, any modification of a lease contract that increases the lease payment to $1,000 or more must be in writing to be legally binding.

Question 14

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 is a doctrine of contract law that requires that an agent who enters into a contract to sell property covered by the Statute of Frauds (such as real estate) must do so in writing in order for the contract to be enforceable. This means that agents cannot enter into such contracts verbally or through other means, and must adhere to the requirements of written agreements.

Question 15

The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.
A) part performance
B) undue performance
C) equitable performance
D) promissory estoppel

Accepted Answer

The doctrine of part performance allows the court to enforce an oral contract for the sale of land or transfer of another interest in real property if there has been partial performance and enforcing the contract is necessary to prevent injustice. This means that if a party has already partially performed on the agreement, such as by making improvements to the property, then the court may order the contract to be specifically performed.

Question 16

Jim's landlord insists on a written agreement to lease his apartment for $25,000 in order to comply with ________ of the Uniform Commercial Code (UCC).
A) Section 2-201(1)
B) Section 2A-201(1)
C) the merger clause
D) the equal dignity rule

Accepted Answer

Section 2A-201(1) of the Uniform Commercial Code (UCC) pertains to the lease of goods and requires a written agreement for leases that exceed a specified value, which aligns with the scenario described.

Question 17

Section 2-201(1) of the Uniform Commercial Code (UCC) states that ________.
A) all lease contracts must be in writing
B) lease contracts involving payments of $1,000 or more must be in writing
C) all sales contracts must be in writing
D) sales contracts involving payments of $500 or more must be in writing

Accepted Answer

Section 2-201(1) of the Uniform Commercial Code (UCC) states that sales contracts involving payments of $500 or more must be in writing.

Question 18

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 19

Explain the creation and working of guaranty contracts.

Accepted Answer

The answer of Explain the creation and working of guaranty...

Question 20

Section 2A-201(1) of the Uniform Commercial Code (UCC) states that lease contracts involving payments of $1,000 or more must be in writing.

Accepted Answer

Section 2A-201(1) of the Uniform Commercial Code (UCC) requires lease contracts involving payments of $1,000 or more to be in writing.

Quiz 14: Statute of Frauds and Equitable Exceptions

Section 2-201(1) of the Uniform Commercial Code (UCC) is the basic Statute of Frauds provision for ________.

Santos told his friend Ernesto that he would sell Ernesto his car for $5,000. However, on the day of the sale, Santos refused to sell the car for the agreed-upon price and demanded more money. Which of the following statements is true in this scenario?

Section 2A-201(1) of the Uniform Commercial Code (UCC) states which of the following?

If Johnny made an oral contract to sell Peter his truck for $15,000, this contract must be enforced.

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.

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

________ is an equitable doctrine that permits enforcement of oral contracts that should have been in writing.

Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30,000? Suggest an alternative and explain how it is beneficial to an oral contract.

The doctrine of part performance is an exception to the Statute of Frauds' writing requirement that courts can apply in order to achieve justice in situations where it is not possible to return the parties to their status quo.

Which of the following statements is true of signature on a written contract?

The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.

If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable.

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

The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.

Jim's landlord insists on a written agreement to lease his apartment for $25,000 in order to comply with ________ of the Uniform Commercial Code (UCC) .

Section 2-201(1) of the Uniform Commercial Code (UCC) states that ________.

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.

Explain the creation and working of guaranty contracts.

Section 2A-201(1) of the Uniform Commercial Code (UCC) states that lease contracts involving payments of $1,000 or more must be in writing.