ch. 16 Flashcards
Parol evidence can be introduced at trial to correct an obvious clerical error in a contract if the error clearly does not represent the parties’ agreement.
True
A contract that is oral is always enforceable against a party to the agreement who does not wish to follow through with it.
False
In a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning.
True
For a particular contract to fall under the one-year rule, the parties must subjectively believe that its performance is impossible to complete within a year.
False
A contract must be in writing to be enforceable if it cannot by its terms be performed within one year from the day after the contract’s formation.
True
An oral contract that would otherwise be unenforceable under the Statute of Frauds will not be enforced under the doctrine of promissory estoppel.
False
Farah 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
Farah.
An agreement that involves an option to buy real property need not be in writing for the option to be enforced.
False
Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by
none of the choices.
Rye agrees to sell his Taco Delight restaurant to Sati. The parties intend their written contract to be a final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sati offers evidence to contradict the written terms. Most likely, the court will
exclude the evidence.
To cater a holiday banquet, Food Service LLC agrees to buy one hundred pumpkin pies from Great Desserts Inc. To be enforceable, the agreement must be in writing if the pies cost at least
$500.
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
Pumps.
An oral contract that should be in writing to be enforceable under the Statute of Frauds may be enforceable if it has been partially performed.
True
Natalie promises to pay for medical services provided by Otto to Polly. Natalie receives no personal benefit for the promise. To be enforceable, the promise must be in writing if
Natalie promises to pay only if Polly does not pay.
Solar Power LLC and Trey enter into an oral contract under which Solar agrees to provide Trey with lifetime employment. This contract may be enforceable by
either Solar or Trey.
In a transaction for the sale of a warehouse, Storage Company tells Truck Dispatch Corporation that the office furniture is included. The contract says nothing about furniture, but does state, “This document supersedes all oral promises relating to the sale.” Is the furniture part of the sale? Why or why not?
No, the document says it supersedes all oral promises. So anything that was promised to Truck Dispatch Corporation is replaced.
A promise to pay another’s debt only if that party fails to pay does not need to be in writing to be enforceable.
False
Rough Canyon Adventures Inc. and Swampcraft Inc. enter into an oral contract for Swampcraft’s sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by
none of the choices.
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
the tablet only.
Mako and Nico agree to buy and develop certain real estate. The parties intend their written contract to be a final statement of the terms, which are complex, lengthy, and subject to many conditions. This writing is
a completely integrated contract.
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
none of the choices.
Any confirmation, invoice, sales slip, check, or e-mail may constitute a writing that satisfies the Statute of Frauds.
True
Guardian Security Inc. and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide services for Hedge’s offices for as long as needed. This contract may be enforceable by
either Guardian or Hedge.
A contract for the sale of land does not ordinarily include physical objects attached to the real property, such as buildings, fences, and trees.
False
An oral promise to sell certain real property is enforceable without more, but the actual sale must be in writing to be enforceable.
False
