Question 1

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

Accepted Answer

A) specify the parties to the contract. 
B) specify the subject matter and essential terms. 
C) be signed by the party to be charged or by his/her agent. 
D) All of the above. 
E) (a) and (b) but not (c) 
A) specify the parties to the contract. 
B) specify the subject matter and essential terms. 
C) be signed by the party to be charged or by his/her agent. 
D) All of the above. 
E) (a) and (b) but not (c)

Question 2

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

Accepted Answer

A) True 
 B)False

Question 3

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Accepted Answer

A) True 
 B)False

Question 4

On March 1, Tammy, a student, received a telephone call from Watterson, Inc.offering her a job for one year beginning on June 15, after completion of the school year.According to the personnel manager, she will have to move to California and be ready to start work at 8:00 A.m.on June 15.Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?

Accepted Answer

A) Yes, because the job offer is a collateral promise. 
B) Yes, because the job offer is covered by the parol evidence rule. 
C) Yes, because the job offer is for longer than one year from March 1. 
D) No, because the job offer is for one year from June 15. 
A) Yes, because the job offer is a collateral promise. 
B) Yes, because the job offer is covered by the parol evidence rule. 
C) Yes, because the job offer is for longer than one year from March 1. 
D) No, because the job offer is for one year from June 15.

Question 5

Which of the following promises in consideration of marriage would be outside the statute of frauds?

Accepted Answer

A) In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. 
B) John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. 
C) Camilo and Laura mutually promise to marry each other in a formal ceremony on June 23. 
D) Della promises to release a money judgment against Steven in consideration of his marrying her. 
A) In consideration of Joan's promising to marry him, a man promises to pay her an allowance and to give her all of his property upon his death. 
B) John and Mary mutually agree that their marriage shall not affect the existing property rights of the other. 
C) Camilo and Laura mutually promise to marry each other in a formal ceremony on June 23. 
D) Della promises to release a money judgment against Steven in consideration of his marrying her.

Question 6

A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.

Accepted Answer

A) True 
 B)False

Question 7

The statute of frauds has to do with fraud in the inducement of a contract.

Accepted Answer

A) True 
 B)False

Question 8

E-Sign specifically excludes:

Accepted Answer

A) wills, codicils, and testamentary trusts. 
B) divorces. 
C) UCC transactions other than sales and leases of goods. 
D) All of the above. 
A) wills, codicils, and testamentary trusts. 
B) divorces. 
C) UCC transactions other than sales and leases of goods. 
D) All of the above.

Question 9

The parol evidence rule applies to partially written agreements.

Accepted Answer

A) True 
 B)False

Question 10

Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule?

Accepted Answer

A) No, because it contradicts the terms of the contract. 
B) No, because it changes the agreement. 
C) No, because it explains the agreement. 
D) Yes, it would be admissible, because it is subsequent to the written agreement. 
A) No, because it contradicts the terms of the contract. 
B) No, because it changes the agreement. 
C) No, because it explains the agreement. 
D) Yes, it would be admissible, because it is subsequent to the written agreement.

Question 11

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?

Accepted Answer

A) Prior oral or written agreements. 
B) Contemporaneous oral or written agreements. 
C) Subsequent oral or written agreements modifying the original agreement. 
D) Two of the above, (a) and (b). 
A) Prior oral or written agreements. 
B) Contemporaneous oral or written agreements. 
C) Subsequent oral or written agreements modifying the original agreement. 
D) Two of the above, (a) and (b).

Question 12

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.Parol evidence:

Accepted Answer

A) cannot be used to explain the term, because the plain meaning of a "year" is 12 months. 
B) cannot be used to explain the term, because the contract is an integrated document. 
C) can be used by the parties to clarify their intent because the term "year" in the contract is ambiguous. 
D) cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution. 
A) cannot be used to explain the term, because the plain meaning of a "year" is 12 months. 
B) cannot be used to explain the term, because the contract is an integrated document. 
C) can be used by the parties to clarify their intent because the term "year" in the contract is ambiguous. 
D) cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

Question 13

The suretyship provision has been interpreted to include promises made to a debtor.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

Accepted Answer

A) A collateral promise made to the creditor. 
B) A promise, the leading object of which is to obtain an economic benefit for oneself. 
C) A collateral promise where there are three parties and two contracts involved. 
D) A promise by an executor to pay the debts of the decedent from the executor's own funds. 
A) A collateral promise made to the creditor. 
B) A promise, the leading object of which is to obtain an economic benefit for oneself. 
C) A collateral promise where there are three parties and two contracts involved. 
D) A promise by an executor to pay the debts of the decedent from the executor's own funds.

Question 15

The parol evidence rule does not apply to:

Accepted Answer

A) a typographical error that obviously does not represent the agreement of the parties. 
B) evidence showing one of the parties to the contract lacks contractual capacity. 
C) The parol evidence rule does not apply to either (a) or (b). 
D) The parol evidence rule applies to both (a) and (b). 
A) a typographical error that obviously does not represent the agreement of the parties. 
B) evidence showing one of the parties to the contract lacks contractual capacity. 
C) The parol evidence rule does not apply to either (a) or (b). 
D) The parol evidence rule applies to both (a) and (b).

Question 16

The statute of frauds generally requires that both parties sign the writing.

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

Sam, a shopkeeper, dies unexpectedly at the age of 46.His lifelong business associate, Paul, is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?

Accepted Answer

A) The oral statement is enforceable because Paul is the administrator. 
B) An oral statement such as this is not enforceable because it is outside the statute of frauds. 
C) An oral statement such as this is not enforceable because it is within the statute of frauds. 
D) The oral statement is enforceable because it is a collateral promise. 
A) The oral statement is enforceable because Paul is the administrator. 
B) An oral statement such as this is not enforceable because it is outside the statute of frauds. 
C) An oral statement such as this is not enforceable because it is within the statute of frauds. 
D) The oral statement is enforceable because it is a collateral promise.

Question 19

Under the UCC parol evidence rule, usage of trade will take priority over specific provisions in a written contract.

Accepted Answer

A) True 
 B)False

Question 20

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Accepted Answer

A) True 
 B)False

Exam 15: Contracts in Writing

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

A significant impediment to e-commerce has been the questionable enforceability of contracts entered into through electronic means, such as the Internet or e-mail, because of the writing requirements under contract and sales law.

A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

Which of the following promises in consideration of marriage would be outside the statute of frauds?

A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.

The statute of frauds has to do with fraud in the inducement of a contract.

E-Sign specifically excludes:

The parol evidence rule applies to partially written agreements.

Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule?

Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.Parol evidence:

The suretyship provision has been interpreted to include promises made to a debtor.

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

The parol evidence rule does not apply to:

The statute of frauds generally requires that both parties sign the writing.

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.

Under the UCC parol evidence rule, usage of trade will take priority over specific provisions in a written contract.

The parol evidence rule applies only to integrated contracts, meaning those in which the parties have assented to the written agreement as the statement of the complete agreement between them.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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