Quiz 3

Question 1

Statutes of frauds

Answer 1

A state Statute that requires certain types of contracts to be in writing

Question 2

Real property

Answer 2

The land itself, as well as buildings, trees, soil, Minerals, timber, plants, crops, fixtures and other things permanently affixed to the land or buildings

Question 3

Mortgage (deed of trust)

Answer 3

An interest in real property given to a lender has security for the repayment of the loan

Question 4

Lease

Answer 4

The transfer of right to use real property for a specified period of time

Question 5

Life estate

Answer 5

An interest in real property for a person’s lifetime. Upon that person’s death, that interest-rate will be transferred to another party

Question 6

Easement

Answer 6

A right to use someone else’s land without owning or leasing

Question 7

One year rule

Answer 7

A rule that states that an executory contracts that cannot be performed by its own terms within one year of its formation must be in writing

Question 8

Guaranty contract

Answer 8

A promise in which one person agrees to answer for the debts or duties of another person. It is a contract between that guarantor and the original creditor

Question 9

Guarantor

Answer 9

A person who agrees to pay a debt if the primary Debtor does not

Question 10

Main purpose Exception (leading object exception)

Answer 10

An exception to the statute of frauds that states that if the main purpose of a transaction and an oral collateral contract is to provide the pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced

Question 11

Equal dignity rule

Answer 11

A rule that says the agents contracts to sell property covered by the statute of frauds must be in writing to be enforceable

Question 12

Section 2 – 201 (one) of the Uniform Commercial Code (UCC)

Answer 12

A section of the Uniform Commercial Code (UCC) that states that sales contracts for the sale of goods costing $500 or more must be in writing

Question 13

Section 2A – 201 (one) of the Uniform Commercial Code (UCC)

Answer 13

A section of the Uniform Commercial Code (UCC) that states that lease contracts involving payments of $1000 or more must be in writing

Question 14

Part performance

Answer 14

An equitable doctrine that allows the court to order an oral contract for the sale of land for transfer of another interests and real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice

Question 15

Integration of several writings

Answer 15

The combination of several writings to form a single contract

Question 16

Incorporation by reference

Answer 16

Integration made by express reference in one document refers to and incorporates another document within it

Question 17

Parole evidence

Answer 17

Any oral or written words outside the four corners of the written contract

Question 18

Parol evidence rule

Answer 18

A rule that says if a written contract is a complete and final statement of the parties agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of a written contract are in admissible in court regarding a dispute over the contract. There are several exceptions to this rule

Question 19

Merger clause (integration clause)

Answer 19

A clause in a contract that stipulates that is a complete integration in the exclusive expression of the parties agreement

Question 20

Promissory estoppel

Answer 20

An equitable doctrine that permits enforcement of oral contracts that should have been in writing. It is applied to avoid injustice