Exam 13: Defenses to Contract Enforceability

A contract must be in writing to be enforceable if its performance is impossible within one year.

In Simone's selling a 300-acre farm to Rural Investments, Inc., she tells the buyer that the land "will be worth twice as much by next year." This is

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

The chief executive officers of Chemico, Inc., and Petro Products Corporation orally agree that Chemico will sell a refinery and the land on which it is situated to Petro. Under the Statute of Frauds, this deal is enforceable by​

Health Source, Inc., offers to buy Medico Equipment & Supplies Corporation. On June 1, Medico gives Health Source copies of Medico's financial statements for the pre­vious year. The statements show an inventory of $10 million. On June 15, Medico discovers that the previous year's inventory is overstated by $500,000, but does not inform Health Source. On July 1, Health Source, relying on the fi­nancial statements, buys Medico. On July 10, Health Source discovers the inven­tory over­statement. Can Health Source succeed in a suit against Medico? On what basis?​

The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.

A unilateral promise to make a monetary payment in consideration or marriage must be in writing to be enforceable.

Oral evidence to "fill in the gaps" of a contract with incomplete terms can be introduced at a trial.

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is

Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud. Proof of an injury is required to​

A threat to exercise a legal right ordinarily constitutes duress.

Morris threatens physical harm to force Barb to contract to pay him for protecting her store Barb's Baubles against vandalism and destruction. Barb may​

In La Junta, Carlos and Alvaro contract for the sale of five hundred head of Carlos’s cattle for $95 per head. Unknown to either party, a unforeseen storm has struck the herd and many of the cattle have died. Alvaro is

In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is in­cluded. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?​

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth, he can​

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract​

Misrepresentation of law ordinarily entitles a party to relief from a contract.

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund's offices for as long as Hedge Fund needs them. This contract may be enforceable by

If a contractor's bid contains a mistake in addition when totaling the estimated costs, the contract may not be enforceable.