Exam 15: Contracts in Writing

With regard to the interpretation of a contract, what priority is given to each of the following items? (a) Course of dealing (b) Usage of trade (c) Express terms (d) Course of performance

Sam orally agreed to sell his house to Humphrey. Humphrey wanted it ready for his family quickly, so after he paid Sam a 5% deposit, he had a new roof put on, new carpeting installed, and he renovated the kitchen. Sam now thinks the place looks great and has decided not to sell. A business law student told him he could back out of the oral agreement. Can he? Explain.

An oral contract for the transfer of an interest in land may be enforced if the party seeking enforcement has so changed his position in reasonable reliance on the contract that a court can prevent injustice only by enforcing the contract.

Under the majority rule, the test under the one-year provision of the statute of frauds is whether it is likely that the contract will be completed within one year.

The word "parol" literally means release.

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing.

The statute of frauds requires all contracts that can be fully performed within one year of their making to be in writing.

Under the majority rule, the test under the one-year provision of the statute of frauds is whether the parties believe that the contract cannot be performed within one year.

Although not covered by the original statute of frauds, most states have statutes requiring a writing to make all but which of the following contracts enforceable?

Under E-Sign, an electronic agent:

The purpose of the statute of frauds is to prevent the performance of oral contracts.

Where a contractual term has more than one possible meaning, it will be interpreted in favor of the party who supplied the contract.

Under the Restatement and the Code, when can supplemental evidence be used with a written contract?

Identify at least six situations in which the parol evidence rule does not apply.

Richard agrees to supply Henry with all his needs of specially made shampoo for Henry's beauty salon. Henry believes that Richard is a representative of a famous hair products company, but he finds a letter to a competitor written by Richard two days before Henry's agreement with Richard was signed, proving that Richard is a fraud. Richard says that this letter may not be admitted in court since their contract is wholly integrated. Is he correct?

General contract law states that contracts that have to be in writing must:

Under the UCC, __________ refers to the manner and extent to which the respective parties to a contract have accepted successive tenders of performance by the other party without objection.

An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my business partner does not write out the check for the supply bill for our company, I will."

Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds. At the end of the letter, she types her name but does not sign her signature to it. If David wants to use the letter to satisfy the writing requirement, he may do so.