Question 1

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds,such person:

Accepted Answer

A)  can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract. 
B)  can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. 
C)  cannot recover the value of the services because they were rendered under a unilateral mistake of law. 
D)  can have the party receiving the services arrested for obtaining property by false pretenses. 
A)  can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract. 
B)  can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. 
C)  cannot recover the value of the services because they were rendered under a unilateral mistake of law. 
D)  can have the party receiving the services arrested for obtaining property by false pretenses.

Question 2

Under the majority view,a contract that does not satisfy the statute of frauds is not enforceable.

Accepted Answer

A) True 
 B)False

Question 3

When there is full disclosure and representation,promises made in consideration of marriage:

Accepted Answer

A)  can be written or oral. 
B)  generally cannot be set aside unless they are unconscionable. 
C)  are only valid if they are signed after the marriage actually takes place.. 
D)  all of the above. 
A)  can be written or oral. 
B)  generally cannot be set aside unless they are unconscionable. 
C)  are only valid if they are signed after the marriage actually takes place.. 
D)  all of the above.

Question 4

The parol evidence rule does not prohibit proof that:

Accepted Answer

A)  the contract was thereafter modified. 
B)  conduct exists that violates the law. 
C)  the written contract is not a binding agreement. 
D)  all of the above. 
A)  the contract was thereafter modified. 
B)  conduct exists that violates the law. 
C)  the written contract is not a binding agreement. 
D)  all of the above.

Question 5

An oral understanding is not binding if:

Accepted Answer

A)  the services performed were not to the satisfaction of the other party. 
B)  the amount agreed to be paid for services rendered was not a fair and reasonable amount. 
C)  the parties intended to formalize their understanding with a written agreement. 
D)  the understanding may be terminated at will by either party. 
A)  the services performed were not to the satisfaction of the other party. 
B)  the amount agreed to be paid for services rendered was not a fair and reasonable amount. 
C)  the parties intended to formalize their understanding with a written agreement. 
D)  the understanding may be terminated at will by either party.

Question 6

A promise to pay a debt must be in writing if:

Accepted Answer

A)  the debt is for more than $500. 
B)  the debt is now due and payable. 
C)  the promise is to pay the debt of another. 
D)  the debt owed is the promisor's. 
A)  the debt is for more than $500. 
B)  the debt is now due and payable. 
C)  the promise is to pay the debt of another. 
D)  the debt owed is the promisor's.

Question 7

In interpreting an ambiguous contract,one part of the contract:

Accepted Answer

A)  must be viewed in isolation. 
B)  must be viewed as a condition. 
C)  must be viewed in connection with the rest of the contract. 
D)  must be viewed as indicating joint and several liability. 
A)  must be viewed in isolation. 
B)  must be viewed as a condition. 
C)  must be viewed in connection with the rest of the contract. 
D)  must be viewed as indicating joint and several liability.

Question 8

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

A promise to pay an attorney a fee owed by a third person can be enforced without a writing.

Accepted Answer

A) True 
 B)False

Question 10

If a contract is unclear,it will be interpreted against the party who drafted it.

Accepted Answer

A) True 
 B)False

Question 11

A promise to grant a mortgage on real property does not require written proof because it is not a transfer of land.

Accepted Answer

A) True 
 B)False

Question 12

Through incorporation by deference,a contract can consist of both the original document and the detailed statement that is incorporated in it.

Accepted Answer

A) True 
 B)False

Question 13

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services,property,or money furnished the other party to the oral contract.

Accepted Answer

A) True 
 B)False

Question 14

When persons enter into an agreement,it is presumed that they intent the agreement to have some effect.

Accepted Answer

A) True 
 B)False

Question 15

The parol evidence rule is based on the theory that any oral agreement was abandoned when the contact was written.

Accepted Answer

A) True 
 B)False

Question 16

The defense of noncompliance may be raised:

Accepted Answer

A)  by the parties to the oral contract. 
B)  by third parties such as an insurance company or the IRS. 
C)  both a.and b. 
D)  neither a.nor b. 
A)  by the parties to the oral contract. 
B)  by third parties such as an insurance company or the IRS. 
C)  both a.and b. 
D)  neither a.nor b.

Question 17

When an insurance policy is ambiguous,the policy is interpreted:

Accepted Answer

A)  against the insurer. 
B)  in favor of the insurer. 
C)  according to the dictionary meaning of the words. 
D)  according to the meaning of the words in the insurance industry. 
A)  against the insurer. 
B)  in favor of the insurer. 
C)  according to the dictionary meaning of the words. 
D)  according to the meaning of the words in the insurance industry.

Question 18

In the absence of a statute requiring a writing,a contract may be oral or written.

Accepted Answer

A) True 
 B)False

Question 19

Because many oral contracts are legally enforceable,it is a good business practice in the preliminary stages of discussions to stipulate that no binding agreement is intended to be formed until a written contract is prepared and signed by the parties.

Accepted Answer

A) True 
 B)False

Question 20

If words and numbers contradict each other in a contract,the rule of construction favors the words.

Accepted Answer

A) True 
 B)False

Exam 17: Writing, Electronic Forms, and Interpretation of Contracts

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds,such person:

Under the majority view,a contract that does not satisfy the statute of frauds is not enforceable.

When there is full disclosure and representation,promises made in consideration of marriage:

The parol evidence rule does not prohibit proof that:

An oral understanding is not binding if:

A promise to pay a debt must be in writing if:

In interpreting an ambiguous contract,one part of the contract:

A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.

A promise to pay an attorney a fee owed by a third person can be enforced without a writing.

If a contract is unclear,it will be interpreted against the party who drafted it.

A promise to grant a mortgage on real property does not require written proof because it is not a transfer of land.

Through incorporation by deference,a contract can consist of both the original document and the detailed statement that is incorporated in it.

A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services,property,or money furnished the other party to the oral contract.

When persons enter into an agreement,it is presumed that they intent the agreement to have some effect.

The parol evidence rule is based on the theory that any oral agreement was abandoned when the contact was written.

The defense of noncompliance may be raised:

When an insurance policy is ambiguous,the policy is interpreted:

In the absence of a statute requiring a writing,a contract may be oral or written.

Because many oral contracts are legally enforceable,it is a good business practice in the preliminary stages of discussions to stipulate that no binding agreement is intended to be formed until a written contract is prepared and signed by the parties.

If words and numbers contradict each other in a contract,the rule of construction favors the words.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters