Question 1

If a contract is not evidenced in writing (but is required by law to be in writing),this does not make it void,only unenforceable.

Accepted Answer

According to the Statute of Frauds, certain contracts must be evidenced in writing to be enforceable. However, the lack of a written agreement does not make the contract void, it simply means that it cannot be enforced in court.

Question 2

Which of the following agreements has to be made in writing under the original Statute of Frauds in order to be enforceable?
A)an agreement for the sale of a farm animal
B)a lease of a vehicle for a term commencing on November 1,2012,and expiring on October 31,2013
C)an agreement to sell a car on January 1 of the following year
D)an agreement for the sale of a building lot
E)an agreement by a creditor to accept $800 in full satisfaction of a debt in the amount of $1000

Accepted Answer

The original Statute of Frauds requires certain types of contracts to be in writing to be enforceable. Among the types listed, an agreement for the sale of real property, such as a building lot, must be in writing according to the Statute of Frauds. Contracts for the sale of personal property, like farm animals or cars, or short-term leases, do not generally require a written agreement under the original Statute of Frauds unless they meet specific criteria not mentioned in the options provided. Similarly, an agreement by a creditor to accept a lesser amount in satisfaction of a debt does not fall under the original requirements for written contracts in the Statute of Frauds.

Question 3

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

Accepted Answer

The Statute of Frauds requires certain contracts to be in writing in order to be enforced by the courts. If a contract subject to the Statute of Frauds is not evidenced in writing, it is still a valid contract, but cannot be enforced by the courts.

Question 4

What must a person establish in order to escape contractual obligations on the basis of insanity?

Accepted Answer

The answer of What must a person establish in order...

Question 5

Only contracts involving significant sums of money must be in writing to be enforceable.

Accepted Answer

This statement is false. While contracts involving significant sums of money may need to be in writing due to the statute of frauds, there are other types of contracts that also must be in writing to be enforceable, such as contracts for the sale of land and contracts that cannot be performed within one year.

Question 6

In Canada,most provinces have either repealed or severely limited the application of their versions of the Statute of Frauds.

Accepted Answer

While the exact limitations vary by province, most Canadian provinces have either repealed or significantly limited the use of the Statute of Frauds in their respective jurisdictions.

Question 7

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150 000,closing date to be August 10,2004.When the two completed their discussion,Mary paid Dave $5000 as part payment of the purchase price and received a receipt.The contract was not in writing.On August 10,Mary tendered the remainder of the money,but Dave refused to convey the property.Mary sued Dave for breach of contract.On these facts,which of the following is true? (Assume that all facts can be proved.)
A)Mary can enforce this contract if the receipt specified that the part payment was for the property in question.
B)Mary cannot enforce the agreement because all of the consideration was not paid.
C)Mary cannot enforce this contract because the contract was not evidenced in writing.
D)Mary cannot enforce this contract because the contract was not in writing.
E)Mary cannot enforce the agreement because she had not paid Dave all of the money.

Accepted Answer

While a contract for the sale of land must be in writing to be enforceable, this requirement may be satisfied if there is a written receipt or note evidencing payment of part of the purchase price. Here, Mary paid $5000 as part payment and received a receipt. If this receipt specified that the payment was for the property in question, it would satisfy the writing requirement and Mary could enforce the contract. Therefore, choice A is the best answer. Choice B is incorrect because partial payment counts as consideration. Choice C is incorrect because a written receipt can satisfy the writing requirement. Choice D is incorrect because a written receipt can satisfy the writing requirement. Choice E is incorrect because Mary had paid part of the purchase price and tendered the remainder on the agreed closing date.

Quiz 3: Formation of Contracts

If a contract is not evidenced in writing (but is required by law to be in writing),this does not make it void,only unenforceable.

Which of the following agreements has to be made in writing under the original Statute of Frauds in order to be enforceable?

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

What must a person establish in order to escape contractual obligations on the basis of insanity?

Only contracts involving significant sums of money must be in writing to be enforceable.

In Canada,most provinces have either repealed or severely limited the application of their versions of the Statute of Frauds.