Chapter 15
The Statute of Frauds—
Writing Requirement
and Electronic Records
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. Under the Statute of Frauds, a contract that is in writing is void.
B2. The Statute of Frauds requires that fraud must be proved by a writing.
B3. Under the Statute of Frauds, all contracts must be in writing to be enforceable.
B4. A written contract for a transfer of land is enforceable.
B5. A contract involving a sale is the only contract relating to an interest in land that must
be in writing to be enforceable.
B6. A contract does not need to be in writing to be enforceable if it makes performance
possible within any definite period of time.
B7. A written contract that cannot, by its own terms, be performed within one year from
the day after its formation is enforceable.
B8. A contract that has not been fully performed by the end of a year from the day of its
making must be rewritten to continue in force.
B9. A contract does not need to be in writing to be enforceable if the contract makes
performance within one year possible.
B10. A written contract that contains a collateral promise is enforceable.
B11. A party’s oral promise to pay another’s debt is enforceable if the guarantor’s main
purpose is to secure a personal benefit.
B12. A written prenuptial agreement is enforceable.
B13. A contract for a sale of goods priced at $499.99 must be in writing to be enforceable.
B14. An electronic record of a contract for a sale of goods can enforceable.
B15. A contract for a sale of land cannot be enforced unless it is in writing even if the
contract has been partially performed.
B16. To be enforceable, a memorandum evidencing an oral contract that would otherwise
be unenforceable must include all essential terms.
B17. To be enforceable as a contract, a writing must have been signed by the party who
seeks to enforce it.
B18. Oral evidence of otherwise clear terms in a contract can be introduced at a trial to
contradict those terms.
B19. Oral evidence of the modification of a contract after its making can be introduced at a
trial.
B20. An integrated contract is the complete and final statement of the terms of the
agreement.
MULTIPLE CHOICE QUESTIONS
B1. Fresh Air Filter & Purification Company and Big Box Commercial Storage Company
enter into a long-term lease for a warehouse. To be enforceable, the lease must be in
writing if the amount of the rent payment is
a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.
B2. Eustace and Durango Oil Company enter into an oral contract under which Eustace
agrees to work on a Durango oil rig for not less than six months. This contract is
enforceable by
a. Eustace.
b. Durango.
c. any interested third party, such as a member of Eustace’s family.
d. none of the choices.
B3. Isaac and Holiday Fruit Company enter into an oral contract under which Isaac agrees
to provide delivery service for holiday Fruit for nine months. This contract is
enforceable by
a. Isaac.
b. Holiday Fruit.
c. any interested third party, such as a Holiday Fruit customer.
d. none of the choices.
B4. Dotty tells a representative of Education Loan Company over the phone that she will
pay Felipe’s student loan if he does not. Dotty does not get any personal benefit for
the promise. This promise is enforceable as a contract by
a. Dotty.
b. Education Loan Company.
c. any interested third party, such as Felipe or a member of his family.
d. none of the choices.
B5. Grady obtains a business loan from Farmers County Bank. To keep Grady in business,
and thereby obtain the benefits of a deal between them, Dakota promises the bank’s
loan officer that she will repay the loan if Grady does not. To be enforceable, Dakota’s
promise
a. need not be in writing.
b. must be in writing because it benefits Grady.
c. must be in writing because the bank is not a party to the other deal.
d. must be in writing because it benefits Dakota.
B6. Lena buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one–
year employment contract for a $4,500 monthly salary to start at the beginning of the
next month. The Statute of Frauds covers
a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.
B7. Rand offers Quade the amount of a down payment on a house if Quade marries
Rand’s daughter Pepper. This promise is enforceable
a. only if it is in writing.
b. only if the price of the house includes the land.
c. only if Pepper agrees to marry Quade.
d. under no circumstances.
B8. Valley Commercial Space, Inc., orally contracts for a lease of its facilities to Willis for
the use of his start-up driftboat company. Willis pays part of the price, takes
possession, and improves the property for his boatbuilding enterprise. The contract is
most likely enforceable by
a. Valley and Willis.
b. Willis but not Valley.
c. any interested third party, such as a driftboat customer.
d. no one.
B9. Sierra Lumber Company and Recycle & Resale, Inc., (R&R) enter into an oral contract
for Sierra’s sale to R&R of six used forklifts for $2,900 each. Before R&R takes posses–
sion of the goods, this contract is enforceable by
a. Sierra.
b. R&R.
c. any interested third party, such as an R&R customer for the goods.
d. none of the choices.
B10. Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food
Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the
contract. Carotene can enforce the contract to
a. any extent because the order was placed orally.
b. no extent because the order was placed orally.
c. the extent of the ten accepted cartons.
d. the extent of the twenty ordered cartons.
B11. Gia orally promises Heck that she will buy his fishing trawler. For this promise to be
enforceable under the doctrine of promissory estoppel
a. the trawler must be considered a customized good.
b. Heck must act in reliance on Gia’s promise to his detriment.
c. Gia’s promise must be in writing.
d. the parties must stop promising until the deal is transacted.
B12. E-Business, Inc. files a suit against Federated Financial Corporation, asking the court to
enforce an oral contract between the parties under the doctrine of promissory
estoppel. This doctrine applies in
a. all states.
b. no states.
c. one state.
d. some states.
B13. Trey and Unice orally agree on the sale of Trey’s Health Club to Unice and note the
terms on a sheet of the club’s stationery, which Trey signs. This agreement is most
likely enforceable against
a. neither Trey nor Unice.
b. Trey and Unice.
c. Trey.
d. Unice.
B14. Nutrition Services, LLC, and Oneida’s Catering & Café Supply Company sign a written
contract that does not involve a sale of goods. To be enforceable, the writing must
include
a. a correct title, such as “Service Contract.”
b. all essential and non-essential terms.
c. a statement of the consideration.
d. a description of the parties’ businesses.
B15. Vern’s Roofing Company and Weatherall Tiles, Inc., sign a written contract for a sale of
goods. To be enforceable, this written contract must include
a. a correct title, such as “Purchase Order” or “Sales Invoice.”
b. a date, such “November 11, 2011” or “11/11/11.”
c. a quantity term, such as “50 pallets” or “100 cartloads.”
d. the parties’ cell phone numbers or e-mail addresses.
B16. Vidal files a suit against Spectator Sports World, Inc., to enforce a contract. The only
written evidence of the contract is a memo on Spectator’s letterhead signed by a
company officer. The contract can be enforced if the memo includes
a. a correct title, such as “Vidal–Spectator Contract.”
b. the name and title of the person who signed the memo.
c. all essential terms.
d. a reference to the source of the funds for payment.
B17. Ramon contracts in writing to sell his Little Shop of Bagels to Suni. When Suni
discovers that the kitchen equipment has been removed, she files a suit against
Ramon. The court decides that the written contract includes everything that the
parties intended. An agreement about the kitchen equipment may be admissible if it
is
a. a previous agreement.
b. not otherwise contained in the parties’ contract.
c. a subsequent modification of the parties’ contract.
d. under no circumstances.
B18. Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid
fraudulently misrepresents a number of material facts. Sid also tells Ty that his
commission is 6 percent, but their signed, written contract states “12 percent.” The
parol evidence rule governs
a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.
Fact Pattern 15-B1 (Questions B19–B20 apply)
Odell and Pete sign a contract for the sale of Odell’s Pizza Parlor to Pete. The parties intend
their written contract to be a final statement of most, but not all, of the terms of their
agreement—Odell must first buy the building from Quin, after which Odell and Pete will
negotiate a final price.
B19. Refer to Fact Pattern 15-B1. Pete later disputes some of the provisions of the deal
with Odell. If the dispute results in litigation, a court will most likely admit evidence of
a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.
B20. Refer to Fact Pattern 15-B1. The writing that Odell and Pete signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
ESSAY QUESTIONS
B1. Allied Corporation in Boston offers a job to Carol, who lives in Denver. Carol orally
agrees to work for Allied for two years. She moves her family to Boston and begins
work. Three months later, she is fired for no stated cause. She files a suit against Allied
for reinstatement or pay. Allied pleads the lack of a written contract. In whose favor is
the court likely to rule, and why?
B2. 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 supercedes all oral
promises relating to the sale.” Is the furniture part of the sale? Why or why not?