Statute of Frauds

Question 1

What is required under the UCC for modification of a contract?

Answer 1

The parties agree to the modification (although not required to do so; it is their choice), but additional consideration is not required

Question 2

Describe a situation in which the special-ordered goods exception would apply

Answer 2

Condition in which the seller has substantially begun performance or has made an irrevocable commitment to do so before the buyer cancels the contract

Question 3

Describe the statute of frauds

Answer 3

A contract statute that requires certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract

Question 4

List the exceptions to the parol evidence rule

Answer 4

1. ) Defenses to formation (misrepresentation, mistake)
2. ) Modification
3. ) Amibiguities (contract not fully integrated)
4. ) Incomplete contract ( Contract not fully integrated)

Question 5

Against whom are ambiguities construed?

Answer 5

Against the party who drafted the contract

Question 6

Define the “Fully Integrated Contract”

Answer 6

Contract that is complete, final, and unambiguous

Question 7

List the situations in which the partial performance exception for real property agreements apply

Answer 7

1. ) Buyer has made a payment
2. ) Buyer has taken possession
3. ) Buyer has made improvements

Question 8

List the minimum requirements for a valid writing or record of a contract

Answer 8

1. ) Identity of the parties
2. ) Subject matter (quantity if more than 1)
3. ) Signature (authentication by party against whom you want enforcement)

Question 9

Define the “parol evidence rule”

Answer 9

A fully integrated contract clearly written cannot be contradicted, varied, or altered by evidence of the parties’ prior negotiations, agreements, or contemporaneous oral agreements

Question 10

Define the merchant’s confirmation memorandum

Answer 10

UCC provision that allows one merchant to bind another based on an oral agreement with one signature. The contract is enforceable against both parties

Question 11

Describe the exception to the written requirement for contracts involving an interest in realty

Answer 11

If a performance is such that the parties cannot be returned to the status quo, the exception is applicable

Question 12

Describe the general rule about contracts that involve an interest in real property

Answer 12

Any contract involving an interest in realty to be enforceable must be in writing or have written evidence thereof, or an applicable exception

Question 13

Describe the one year rule under the statute of frauds

Answer 13

Any contract objectively impossible to perform within one year from the date of contract formation without breaching the terms must be in writing or have written evidence of it to be enforceable

Question 14

List the contracts that must in writing or on record to be enforceable

Answer 14

1. ) Real property sales, transfers, listing, and leases longer than one year.
2. ) Contracts to pay the debt of another
3. ) Contracts that cannot be performed within one year
4. ) Contracts for the sale of goods for $500 or more

Question 15

Describe the UCC performance exception to the requirement of a record

Answer 15

If the buyer takes possession or makes a payment accepted by the seller, Statute of Frauds is removed at least for the part possessed or paid for. If the seller accepts payment for the goods, at least for the amount reflected in that payment

Question 16

What is required for modification of a contract under common law?

Answer 16

Additional Consideration

Question 17

What types of contracts does the Parol Evidence apply?

Answer 17

Final, complete, and unambiguous contracts (fully integrated contracts)

Question 18

Do Special Ordered goods need to be in writing?

Answer 18

No, this is an exception under UCC. Seller could not resell the goods, so an oral contract is sufficient