Chapter 16 Book set Flashcards
A party who seeks the performance of an oral contract must prove that the contract existed.
True
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 promise to pay another’s debt only if that party fails to pay does not need to be in writing to be enforceable.
False
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
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
To clarify the terms of a written contract, a court will admit any parol evidence.
False
Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove’s facilities for two years. This contract is enforceable by
none of the choices.
* Air Flo.
* Banyan Grove.
* any third party, such as a HVAC supplies provider.
Reliance on a certain type of oral contract can be enough to remove it from the Statute of Frauds.
True
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
An agreement that involves an option to buy real property need not be in writing for the option to be enforced.
False
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
* Becca
* ActioNOW
* any third party, such as ActioNOW’s clients.
A party’s signature must be at the end of a writing for the writing to constitute an enforceable contract.
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
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
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
An oral contract for customized goods may be enforced in certain circumstances.
True
Under the Statute of Frauds, a contract involving an interest in land must be in writing to be enforceable.
True
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
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
* Duane, Evan, or Finance Bank
* Duane or Evan
* Finance Bank
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
Any contract involving consumer goods must be in writing to be enforceable.
False
A contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible.
False
Because the Convention on Contracts for the International Sale of Goods incorporates a Statute of Frauds provision, most nations require contracts to meet certain writing requirements to be enforceable.
False
To satisfy the UCC’s Statute of Frauds, a writing evidencing a sales contract need only state the price term.
False
A written contract or a written memorandum signed by the party who seeks to enforce it will satisfy the Statute of Frauds.
False
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
The assumption of direct financial responsibility for a debt does not need to be in writing to be enforceable.
True
Elena offers to invest a certain amount in Falco’s business if Falco marries Elena’s daughter Glenna. This promise is enforceable
only if it is in writing
Daredevil Rides Inc. owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil’s debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by
Daredevil, Equipment, or Food.
A contract must be in writing to be enforceable if the contract makes performance possible within any definite period of time.
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
A written contract must consist of a single document to constitute an enforceable contract.
False
An agreement made before marriage that defines each partner’s interest in the other partner’s property is a collateral promise.
False
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
Kee and Lu enter into a contract for the sale of Mountain Valley Ranch. To be enforceable, this contract must be
in writing or evidenced by a written memorandum
Lew tells a representative of Music Inc. that he will pay for Nora’s trumpet if she does not. Lew does not secure any personal benefit for this promise. This promise is enforceable as a contract
only if it is in writing
A unilateral promise to pay a sum of money or to give property in consideration of a promise to marry must be in writing.
True
An oral sales contract for goods priced at less than $500 is unenforceable.
False
Any confirmation, invoice, sales slip, check, or e-mail may constitute a writing that satisfies the Statute of Frauds.
True
In an effort to prevent fraud, the Statute of Frauds denies enforceability to certain contracts that do not comply with its requirements.
True
An agreement subject to the writing requirement must be written on paper.
False
The purpose of the Statue of Frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms.
True
Omar orally agrees with Pi Pizza to provide delivery service to its customers for nine months. This contract is enforceable by
either Omar or Pi.
To be enforceable, a memorandum evidencing an oral contract must identify the consideration.
True
A promise to pay a primary obligation normally must be in writing to be enforceable.
False
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
An oral contract that would otherwise be unenforceable under the Statute of Frauds will not be enforced under the doctrine of promissory estoppel.
False
A memorandum evidencing an oral contract must contain every term of the deal to be enforceable.
False
Grain Co-op LLC and Hearty Cereals Inc. discuss the terms of a contract for deliveries of corn over a two-year period. This transaction falls within the provision of the Statute of Frauds involving
the one-year rule
