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Chapter 15. Contracts in Writing
1. The parol evidence rule is an exclusionary rule of evidence.
a. True
b. False
2. The parol evidence rule only applies to written contracts.
a. True
b. False
3. The word “parol” literally means release.
a. True
b. False
4. The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term
"serrated."
a. True
b. False
5. The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.
a. True
b. False
6. The statute of frauds has to do with fraud in the inducement of a contract.
a. True
b. False
7. Most types of contracts are valid without being written.
a. True
b. False
8. The statute of frauds generally requires that both parties sign the writing.
a. True
b. False
9. A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.
a. True
b. False
10. Jim promises to marry Cynda if she will buy him a new Ferrari for his birthday. This promise must be in writing to be
enforceable.
a. True
b. False
11. A part performance exception to the statute of frauds in many states requires both that the transferee has paid at
least a portion of the purchase price and has either taken possession of the real estate or has started to make
valuable improvements on it.
a. True
b. False
12. A usage of trade is a practice or method of dealing, regularly observed and followed in a place, vocation, or trade.
a. True
b. False
13. In an employment agreement with Karl, Arnold promises to work for Karl for the rest of his life. This promise must
be in writing to be enforceable.
a. True
b. False
14. Clara types a letter to David setting forth the terms of their contract that falls within the statute of frauds. At the end
of the letter, she types her name but does not sign her signature to it. If David wants to use the letter to satisfy the
writing requirement, he may do so.
a. True
b. False
15. Yukino pays $500 toward the purchase of a boat from Tyler. Although their agreement for the sale of the boat for
$2,200 is oral, courts agree that her part payment and its acceptance by Tyler make the contract enforceable.
a. True
b. False
16. Under the Code an oral contract for specially manufactured goods costing $500 is enforceable even if the seller has
not begun their manufacture.
a. True
b. False
17. The UCC requires that all contracts for the sale of goods must be in writing.
a. True
b. False
18. Most courts consider a merger clause to be conclusive proof of an integrated contract.
a. True
b. False
19. In order to be sufficient, an agreement required to be written under the statute of frauds must be signed at the
bottom and notarized.
a. True
b. False
20. Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he'll take it. They now must get
together and write a memorandum because it is a sale of goods for over $500.
a. True
b. False
21. The statute of frauds does not prevent the performance of oral contracts if the parties are willing to perform.
a. True
b. False
22. The parol evidence rule applies to partially written agreements.
a. True
b. False
23. When a court interprets an ambiguous contract, usage of the trade will take precedence over express terms in the
contract.
a. True
b. False
24. To satisfy the statute of frauds, the person who wants to bring the lawsuit must sign a memorandum.
a. True
b. False
25. On March 20, Gordon orally agrees to work for Carrham, Inc. for a period of one year commencing on June 1. No
writing is necessary here, because the contract can be performed within one year.
a. True
b. False
26. 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.
a. True
b. False
27. The parol evidence rule does not prevent the use of evidence that a party would like to use to establish the defense
of fraud, duress, or undue influence.
a. True
b. False
28. In interpreting a contract, terms which have been separately negotiated are given priority over standardized, pre-
printed terms.
a. True
b. False
29. The English statute of frauds and the Code’s provision differ in language but have the same basic legal effect: an
oral contract for certain identified situations is void.
a. True
b. False
30. In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the
son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient
electronic record.
a. True
b. False
31. An example of language creating a suretyship as meant under the statute of frauds would be the following: "If my
business partner does not write out the check for the supply bill for our company, I will."
a. True
b. False
32. Brent loans Manuel $1,600 on his oral promise to repay the loan in three annual installments. Most courts would hold
Manuel’s promise is unenforceable under the one-year provision of the statute of frauds.
a. True
b. False
33. ABC Corp. is building a new office tower. Ace Plumbing Supplies refuses to provide plumbing materials on credit to
the plumbing subcontractor on the building. ABC promises Ace that it will pay for the materials if the subcontractor
does not. ABC's promise is unenforceable unless in writing.
a. True
b. False
34. Although a contract to purchase an undeveloped lot must be in writing to be enforceable, a contract to run power
lines over someone else's lot need not be.
a. True
b. False
35. The test under the one-year provision of the statute of frauds is based on the likelihood that the contract will be
completed within one year.
a. True
b. False
36. The test under the one-year provision of the statute of frauds is whether the terms of the contract make it possible
for performance to occur within one year.
a. True
b. False
37. A party to a contract that is unenforceable because of the statute of frauds may be able to recover in restitution the
benefits conferred on the other party in reliance on the unenforceable contract.
a. True
b. False
38. The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract
in court, even though the statute of frauds requires the agreement to be in writing.
a. True
b. False
39. The suretyship provision rule within the statute of frauds applies to cases involving one party's promising to perform
the duty of another party to yet a third party.
a. True
b. False
40. The main purpose doctrine is an exception developed by the courts to the suretyship provision.
a. True
b. False
41. The suretyship provision has been interpreted to include promises made to a debtor.
a. True
b. False
42. The executor-administrator provision applies to promises of an executor of a decedent's will to the decedent's
creditors.
a. True
b. False
43. The statute of frauds requires all contracts that can be fully performed within one year of their making to be in
writing or proper electronic form.
a. True
b. False
44. The UETA has been adopted by all of the states to give full effect to emergency transactions.
a. True
b. False
45. The computation of time for the one-year provision of the statute of frauds starts when the agreement is made, not
when the performance is to begin.
a. True
b. False
