Contracts

Question 1

Subject: Contracts

What are the topics under the Statute of Frauds that must be in writing

Answer 1

Subject: Contracts
The following items must be in writing according to the Statute of Frauds.
1. An agreement to sell land or any interest in land.
2. An agreement that cannot be performed within one year of making the agreement.
3. A agreement to answer the debt or default or another.
4. An agreement for the sale of goods for $500 or more.

Question 2

Subject: Contracts

Generally, a party’s rights in a contract are assignable and duties are delegable. What are the exceptions to the rule?

Answer 2

Subject: Contracts
Exceptions
1. Contract involves personal services, trust, or confidence.
2. A provision prohibits assignment or delegation.
3. Assignment would materially change the risk or burden of the obligor

Question 3

Subject: Contracts
What are the differences between Common Law and the UCC Statute of Frauds when it comes terms that must be explicitly stated on an offer?

Answer 3

Subject: Contracts
Common Law- The terms of the offer must be certain or definite.
UCC Statute of Frauds- Quantity terms generally must be included in a writing. Also must be signed by the party to be charged.

Question 4

Subject: Contracts
True or False
An irrevocable option is only created when the offeree gives something of value to keep the offer open for a stated period of time.

Answer 4

Subject: Contracts
True
An IRREVOCABLE option is only created when the offeree gives something of value to keep the offer open for a stated period of time.

Question 5

Subject: Contracts
True or False
A contract that could have been completed within 1 year does not fall within the Statute of Frauds and therefore can be oral.

Answer 5

Subject: Contracts
True
A contract that COULD HAVE been completed within 1 year does not fall within the Statute of Frauds and therefore can be oral.

Question 6

Define the Parol Evidence Rule

Answer 6

The parol evidence rule prohibits the presentation as evidence of any PRIOR or CONTEMPORANEOUS oral statements for the purpose of modifying or changing a written agreement intended by the parties to be the final and complete expression of their contract.

Question 7

True or False
When a creditor agrees to accept as full payment an amount less than the full amount of the undisputed (liquidated) debt, the agreement lacks valid consideration to be enforceable.

Answer 7

True
When a creditor agrees to accept as full payment an amount less than the full amount of the undisputed (liquidated) debt, the agreement lacks valid consideration to be enforceable.

Question 8

True or False

The parol evidence rule applies to any subsequent oral promises made after the original agreement.

Answer 8

False
The parol evidence rule applies DOES NOT APPLY to any SUBSEQUENT oral promises made after the original agreement.
The parol evidence rule prohibits the presentation as evidence of any PRIOR or CONTEMPORANEOUS oral statements for the purpose of modifying or changing a written agreement intended by the parties to be the final and complete expression of their contract.