Chapter 16 Flashcards
The statute of frauds requires, at a minimum:
a. A writing signed by both parties.
b. An unsigned memorandum.
c. A memorandum signed by the “party to be charged.”
d. A formal written contract that fully integrates all the terms of the agreement.
C
Which of the following agreements does not require a writing to be enforceable?
a. Todd agrees to sell his house to Callie.
b. Edna sells $450 of widgets to Loren.
c. Fran agrees to pay Bank if Pete does not pay his loan with them.
d. Wally signs a three-year contract to play baseball for the New York Yankees
B
The part performance exception in contracts for the sale of land requires that the person seeking to
enforce an oral contract establish:
a. Payment of purchase price.
b. Payment of part of the purchase price.
c. Some action indicating ownership of the property.
d. Both payment of some consideration and some action indicated ownership of the property
D
An oral employment contract to hire a person “for life:”
a. Is enforceable under the statute of frauds.
b. Is unenforceable because of the part performance exception.
c. Is unenforceable under the main purpose exception.
d. Is unenforceable because it cannot be performed within one year.
A
Which of the following situations would defeat the statute of frauds requirement of a writing for a
sale of goods of $500 or more?
a. Wilt, a very large man, orally agrees to purchase from Obers Clothing five custom-made suits
for $4,500. Obers makes a substantial start on the suits and then learns that Wilt wants to back
out of the contract.
b. Hank orally agrees to sell 1,000 widgets at $3 per widget to Patty. Hank delivers the widgets to
Patty and she accepts them.
c. Tom orally agrees to buy 500 widgets at $3 per widget from Irma. Tom pays Irma $1,500.
d. All of the above
D
Which of the following is not an exception to the parol evidence rule?
a. Bernie wants to introduce oral terms consistent with the written agreement he has with Sara to
fill in
the gaps that exist in the written contract.
b. Carla claims she and Ben orally agreed to some terms before they signed their written contract.
c. Vera wants to introduce oral testimony to show when her contract with Stan was to begin.
d. Ray wants to introduce oral testimony to help clear up ambiguous terms in his contract with
Kendra
B
Which of the following is not true regarding the statute of frauds?
a. Bill orally agrees to buy Rita’s house. Bill moves into the house and makes some improvements
to it. Bill’s part performance probably makes the oral agreement enforceable.
b. Tammy frequently uses her bank’s online banking service. Tammy deposits and withdraws
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16-6
money online. She must enter her account at the bank’s Web site by providing a password. The
password could serve as the necessary signature under the statute of frauds.
c. The signatures of both parties to a contract are required under the statute of frauds.
d. A memorandum satisfies the writing requirement of the statute of frauds.
C
Which of the following would require a writing to be enforceable?
a. Rick, executor of his aunt Joan’s estate, promises Irene, one of Joan’s creditors, that he will be
personally liable for making sure she is paid in full.
b. Sue co-signs on her son’s loan at the bank.
c. Pat, a supplier for Sally’s Signs, signs on a note of Sally’s at the bank to insure that Sally stays
in business.
d. Vern agrees to a one semester contract to teach at State University
A
Which of the following statements is not true?
a. Ambiguities in an insurance contract will be resolved against the insurance company that
drafted the contract.
b. A party to a contract cannot introduce proof of an oral agreement that was made subsequent to
the written contract.
c. Written terms control printed terms in the event of a conflict in a contract.
d. Contracts made in certain professions may contain words with particular meaning in that
profession
B
If a contract does not comply with the statute of frauds, it is:
a. void.
b. fully enforceable by either party.
c. voidable.
d. unenforceable.
D
Contracts that cannot be performed within one year must be in writing to be enforceable.
T
Carol co-signs on a note for Ben at First State Bank. The agreement must be in writing in
order to be enforceable
F
The “part performance” exception arises in cases where a person seeks to enforce an oral
promise for the sale of land.
T
A party is allowed to introduce oral testimony to show that she entered into the contract
represented by the writing based on fraud
T
If a person orally misrepresents the condition of real property, that misrepresentation will
be inadmissible in court under the parol evidence rule.
F
