Question 1

Which of the following is false regarding the statute of frauds?
A) It relates to fraudulent contracts.
B) It does not address illegal contracts.
C) It does not exist at the federal level.
D) It requires that only certain contracts be in writing.
E) It is not a unitary government act.

Accepted Answer

The name "statute of frauds" does not relate to fraudulent contracts.

Question 2

The Uniform Electronic Transactions Act reflects the decision that electronic transactions do not constitute a written copy because the electronic transaction is not technically a written document.

Accepted Answer

The Uniform Electronic Transactions Act reflects the decision that particular electronic transactions may constitute a "written copy" and therefore have legal significance, despite the fact that the electronic transaction is not technically a written document.

Question 3

As discussed in the text, a main purpose of the statute of frauds is to prevent unreliable _____ evidence from interfering with a contractual relationship.
A) Hearsay
B) Oral
C) Irrelevant
D) Immaterial
E) Inconclusive

Accepted Answer

A main purpose of the statute of frauds is to prevent unreliable oral evidence from interfering with a contractual relationship.

Question 4

The concept of performance has no effect on the statute of frauds.

Accepted Answer

Although the statute of frauds requires a writing for sales of interests in land, under the partial-performance exception, if the buyer in an alleged contract for the sale of land has paid any portion of the sale price, has begun to permanently improve the land, or has taken possession of it, the courts will consider the contract partially performed and this partial performance will amount to proof of the contract.

Question 5

Which of the following is a type of contract that falls within the scope of the statute of frauds?
A) Contracts whose terms prevent possible performance within one year
B) Contracts involving the provision of services
C) Contracts involving the provision of any goods
D) Contracts involving any debt
E) Contracts involving services in relation to computer equipment

Accepted Answer

Contracts whose performance, based on the terms of the contract, could not possibly occur within one year fall within the statute of frauds and therefore must be in writing.

Question 6

The purpose of the parol evidence rule is to prevent attempts to use only oral evidence to prove agreements.

Accepted Answer

The purpose of the parol evidence rule is to prevent evidence that substantially contradicts an agreement in its written form.

Question 7

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the error was indeed an error, as well as to set forth the proper term.

Accepted Answer

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error (typo), parol evidence is admissible to demonstrate that it was a typo, as well as to set forth the proper term.

Question 8

In some states a promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable.

Accepted Answer

In some states, to be enforceable, a promise to pay a debt that has already been discharged because of bankruptcy must be in writing to prevent the promisor from hiding behind the fact that the debt has been discharged.

Question 9

Which of the following was the result in the Case Nugget in the text involving the dispute between Dr. Ralph M. Aurigemma and New Castle Care, LLC, involving whether an oral agreement entered into on September 4 involving Dr. Aurigemma serving as medical director from October 1 of that year until October 1 of the next year was enforceable?
A) That the contract was enforceable because agreements for professional services do not come within the protection of the statute of frauds.
B) That the contract was enforceable because of the partial-performance exception to the statute of frauds.
C) That the contract was not in writing and, therefore, could not be enforced.
D) That the contract could not be enforced because of the parol evidence rule.
E) That the contract could be enforced because of the parol evidence rule.

Accepted Answer

The court ruled that because the terms of the oral contract were for a time period of more than a year, the oral contract would have had to have been in writing in order to have been valid. The court also pointed out that in Delaware, the state at issue, the partial-performance exception to the statute of frauds does not apply to oral contracts incapable of being performed within a year.

Question 10

There is federal U.S. legislation titled "Statute of Frauds".

Accepted Answer

There is no federal legislation entitled "Statute of Frauds." Rather, the statute exists as legislation at the state level.

Question 11

What did the appellate court rule in the case in the text, Power Entertainment Inc., v. Football League Properties Inc., involving the enforceability of an alleged oral agreement by which the plaintiff assumed a third party's debt owed to the defendant in return for the defendant transferring a licensing agreement to the plaintiff? A) That the plaintiff was barred from recovery by the suretyship provision of the statute of frauds. B) That the plaintiff could recover because the original agreement between the third party and the defendant was in writing. C) That the oral agreement fell outside the statute of frauds if the plaintiff satisfied the main purpose doctrine. D) That the oral agreement fell outside the statute of frauds if the plaintiff satisfied the parol evidence rule. E) That the plaintiff could recover as a matter of law because the statute of frauds does not apply to suretyship agreements.

Accepted Answer

According to the court, based on the main purpose doctrine, "it is apparent Power Entertainment may be able to show the alleged oral agreement falls outside of the statute of frauds."

Question 12

Blaine and Amanda orally agreed with Medical Center X for an in vitro fertilization procedure that would not result in the birth of an autistic child. They later signed a written contract stating that the medical center could not promise an absence of physical or mental defects and assumed no responsibility for such defects. The child conceived had autism. Which of the following is the most likely result of the parents' suit for breach of the oral agreement if the court follows the decision Scalisi et al. v. New York University Medical Center discussed in the text? A) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts conditioned on orally agreed upon terms. B) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts that are not final as they are part written and part oral. C) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving contracts that are incomplete. D) The oral agreement will be enforced, and the parents will prevail under the exception to the parol evidence rule involving evidence of prior dealings or usage of trade. E) The medical center will prevail based upon the written contract.

Accepted Answer

The state court of appeals ruled in favor of the medical finding that even if the alleged oral promises had been made, they were inadmissible in light of the existence of the subsequent written agreement directly contradictory to them.

Question 13

In order for the statute of frauds to be satisfied, all parties to a contract must sign the writing.

Accepted Answer

While it is standard for both parties to sign the agreement, because the writing is being offered as proof of an agreement, only the party against whom action is sought needs to have signed it.

Question 14

When a court deems a contract integrated, parol evidence is admissible.

Accepted Answer

When the courts deem a contract integrated, with some exceptions, parol evidence is inadmissible.

Question 15

Contracts related to an interest in land fall within the statute of frauds.

Accepted Answer

Only specific types of contracts are within the scope of the statute of frauds and thus required to be evidenced by a writing, and these include contracts related to an interest in land.

Question 16

Which of the following is false regarding written contracts?
A) Disputes are easier to settle when contractual terms are solidified in writing.
B) The moment of writing allows both parties to reconsider terms and ensure what they desire.
C) In general, written contracts aid in the conduct of smooth business contracts.
D) The idea of requiring a writing comes from an English law.
E) All contracts must be in writing in order to be enforced.

Accepted Answer

Only specific types of contracts are within the scope of the statute of frauds and thus required to be evidenced by a writing.

Question 17

If a contract's terms require that modification be in writing, oral modifications are inadmissible and unenforceable.

Accepted Answer

If the contract's terms require that modification be in writing, oral modifications are inadmissible and unenforceable.

Question 18

Which of the following is a type of contract that does not fall within the scope of the statute of frauds?
A) Contracts related to an interest in land
B) Promises made in consideration of marriage
C) Contracts related to any lease of land or equipment
D) Contracts whose terms prevent possible performance within one year
E) Contracts for one party to pay the debt of another if the initial party fails to pay

Accepted Answer

Contracts falling within the statute of frauds are (1) contracts whose terms prevent possible performance within one year, (2) promises made in consideration of marriage, (3) contracts for one party to pay the debt of another if the initial party fails to pay, and (4) contracts related to an interest in land.

Question 19

Sally has a large farm and significant other assets. She agreed to loan her nephew Todd $100,000 with payments of principle and interest to be made yearly. A few years later she and Todd got into a dispute because Sally did not like his new girlfriend, Polly. Soon thereafter Todd got notice that Sally was suing him for not paying interest on the note. Todd defended on the basis that two years after the initial loan agreement was entered into, he and Sally entered into an oral agreement that he would perform services on her farm in lieu of paying interest on the note. If the court follows the reasoning of the court in the Case Opener involving Monroe Bradstad and Jeanne Garland, which of the following is the most likely result of the dispute between Sally and Todd involving whether he owes past interest amounts?
A) Todd will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing.
B) Todd will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement.
C) Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement.
D) Assuming the court credits Todd's account of events, Todd will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement.
E) Assuming the court credits Todd's account of events, based on the parol evidence rule, Todd will be required to pay only 1/2 of the interest amounts.

Accepted Answer

The court in the Case Opener involving Monroe Bradstad and Jeanne Garland ruled that the oral agreement at issue was enforceable as a separate agreement entered into after the original written agreement that was the subject of the dispute.

Question 20

In ______ the English Parliament passed the Act for the Prevention of Frauds and Perjuries.
A) 1555
B) 1677
C) 1770
D) 1776
E) 1865

Accepted Answer

The Act for the Prevention of Frauds and Perjuries passed by Parliament in 1677.

Quiz 18: Contracts in Writing

Which of the following is false regarding the statute of frauds?

The Uniform Electronic Transactions Act reflects the decision that electronic transactions do not constitute a written copy because the electronic transaction is not technically a written document.

As discussed in the text, a main purpose of the statute of frauds is to prevent unreliable _____ evidence from interfering with a contractual relationship.

The concept of performance has no effect on the statute of frauds.

Which of the following is a type of contract that falls within the scope of the statute of frauds?