Reference no: EM132087612

1. If two parties enter into an oral contract that falls under the Statute of Frauds and both parties have fully performed according to its terms then

neither party can set aside the transaction on the ground that there was no writing.

either party can set aside the transaction on the ground that there was no writing.

both parties must make the contract in writing for it to become enforceable.

both parties’ liabilities to each other become quasi-contractual.

2. The breach of contractual obligation is called:

deuce.

damage.

default.

usury.

3. Which of the following is an exception to the Statute of Frauds and does not have to be in writing?

An agreement where a promise is an original promise by the promisor rather than a promise to pay the debt of another

An agreement of an executor or administrator to pay the debts of the estate from the executor’s or the administrator’s personal funds

An agreement to become responsible for the debts or default of another

An agreement with terms which cannot be performed within one year from the time it is made

4. According to the federal Electronic Signatures in Global and National Commerce Act:

strike-through signatures needs to be on paper.

signatures on a contract no longer have to be on paper.

electronic signatures are unenforceable.

scribbled signatures are unenforceable.

5. A complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake exists. This rule is known as the:

illusory promise rule.

parol evidence rule.

rule against perpetuities.

mirror image rule.

6. Which of the following demonstrates an advantage of a written contract over an oral contact?

The existence of a contract cannot be denied if it is in writing.

Written contracts are generally more enforceable.

Written contracts can include more than two parties, whereas oral contracts cannot.

It is impossible to have mutual mistakes in a written contract.

7. The law requires a contract that cannot be performed within _____ year(s) of the date of formation to be in writing.

ten

two

five

one

8. An agreement to _____ comes under the Statute of Frauds and must be in writing.

sell food and beverage products

sell a vehicle

sell any interest in land

sell tickets to a sporting event

Brief Hypotheticals

9. Sam and Denise enter into an oral contract whereby Sam promises to sell his one acre land to Denise for $1,000,000. Sam and Denise perform according to the terms of this oral contract. Denise pays $1,000,000 and becomes the owner of Sam’s one acre of land. Which of the following is true with regard to this scenario?

Denise can seek to set aside the contract as the contract falls under the Statute of Frauds.

This transaction does not come under the Statute of Frauds.

In case of a breach, the money or the value of the service cannot be recovered as it is an oral contract.

Sam cannot seek to set aside the contract on the ground that there was no writing.

10. Which of the following agreements must be in writing in accordance with the Statute of Frauds?

Charlie’s agreement with Ron to take care of Ron as long as he lives.

A mutual promise of Mike and Nancy to marry each other.

Peter’s agreement to sell a pack of candies for $10.

Ben’s agreement to become responsible for Darwin’s debt.

11. Percy owns an apartment in Maryland. She leases this property to Sandy for a four–year term. Which of the following is true with regard to this scenario?

This contract must be in writing in order to be binding.

This contract must be partly ratified in order to be binding.

This contract can be an oral contract as it does not fall under the Statute of Frauds.

This contract is void as properties cannot be leased for more than a year under the Statute of Frauds.

12. William made a contract with Kevin to build a boat for $800. William’s failure in building the boat led to a breach of contractual obligation. This is an example of:

deuce.

debt.

damage.

default.

13. Shirley who is planning to start a boutique borrows $100,000 from Danny. Gary, Shirley’s uncle, promises Danny to pay Shirley’s debt to Danny if she defaults on payment. According to the Statute of Frauds, which of the following is true with regard to this scenario?

Shirley’s promise must be an oral contract.

Gary’s promise is void.

Gary’s promise is an exception to the Statute of Frauds.

Gary’s promise must be in writing.

14. ryce promises to sell Marcia a parcel of land for $100,000. The two specify the terms of the sale in a written contract, but only Bryce signs the agreement. Marcia subsequently decides she does not want to buy the land. Will Bryce be able to enforce the agreement?

No, because Marcia did not sign the written agreement.

No, because the agreement is unconscionable.

Yes, because the agreement is valid.

Yes, because the agreement is in writing.

15. Dexter contracted with the Roberts to mow their yard once a week during the summer in exchange for $50 per week. The contract was clearly drafted and signed by both parties. Halfway through the summer, Dexter sued the Roberts over the weekly pay. He claimed the Roberts had sent an email to him two weeks before signing the contract and had promised to pay $75 per week. Will Dexter be able to present the email as evidence to modify the written contract?

No, because the contract is voidable.

No, because the admission of the email would violate the parol evidence rule.

Yes, because it would be unfair to Dexter to exclude the Roberts' email.

Yes, because it helps the court determine the parties' intent.

Legal Reasoning

16. Stuart claimed that when he was hired by Midwest Bottling Co., the company orally offered a contract to employ him until he retired. Stuart claimed he accepted and told Midwest Bottling Co. he might not retire for 10 more years. Three years later, Midwest Bottling Co. terminated Stuart's employment. Stuart sued, claiming breach of employment contract. Midwest Bottling claimed the alleged oral contract was required by the Statute of Frauds to be in writing, because it could not be completed in one year and therefore was unenforceable. Did the contract fall within the Statute of Frauds?

Yes, because Stuart worked for the company 3 years before being fired

Yes, because Stuart told the company he might not retire for 10 more years

No, because it was possible for the oral contract to be completed within 1 year

No, because the oral contract was unconscionable

17. Bob wants to help his daughter, Violet, upgrade her home. Bob buys a new refrigerator and oven for Violet on credit from a home supply store. He instructs the home supply store to deliver the new appliances to Violet's home for installation. Which of the following is true with regard to this scenario?

Bob's promise to pay the home supply store must be in writing.

Bob's promise to pay the home supply store can be oral.

Bob's liability to the home supply store is quasi-contractual in nature.

Bob's promise to pay the home supply store is void.

18. Paul leased a farm from Michael. The lease contained this uncompleted provision: “Lessor does hereby rent and lease to the Lessee the following described property for a term commencing on the ___ day of ____, 20___, and ending on the ___ day of ____, 20___.” Michael later sued to regain possession of the property. Paul wanted to prove with an oral agreement that the lease was to run as long as a note, but the maturity date of the note had not been known when the lease was signed. Should the evidence regarding the oral agreement be admitted to clarify the term of the written contract (the lease)?

No, because the contract pertains to an interest in land, which must be in writing.

No, because the oral agreement was made prior to the written agreement.

Yes, because the lease was clearly incomplete.

Yes, because the mirror image rule allows for its admission.