Chapter 16

Question 1

Statute of Frauds states that a state statute…

Answer 1

Must be in writing for it to be enforceable

Does not apply to fraud

Question 2

What are 5 business contracts that must be in writing?

Answer 2

1. Land
2. Contracts that can’t be completed in a year
3. Collateral Promises
4. Consideration of Marriage
5. Contracts for sales of goods

Question 3

Why do contracts that can’t be completed in a year have to be in writing?

Answer 3

Because longer contracts tend to be harder to prove since memory can be hazy

Question 4

Collateral Promise

Answer 4

A promise to answer the debt for someone else

Consists of primary + secondary promises

Question 5

Primary Promises

Answer 5

Obligations not conditioned on the person’s failure to perform

Question 6

Secondary Promises

Answer 6

Obligations to pay only if that party fails to pay

Question 7

Which kind of collateral promise must be in writing?

Answer 7

Secondary promises

Question 8

Consideration of Marriage

Answer 8

An unilateral promise for something in consideration of marriage

Question 9

Prenuptial Agreement

Answer 9

An agreement made before marriage that defines each partner’s ownership rights in the other partner’s property

Question 10

The UCC requires evidence stating the quantity sold for…

Answer 10

Sales totaling $500 or more

Question 11

3 exceptions to the writing requirement are…

Answer 11

1. Partial performance
2. Admissions
3. Special UCC exceptions

Question 12

Partial performance indicates that…

Answer 12

At least 1 party believes there’s a contract

Question 13

An equitable remedy for partial performance is…

Answer 13

Specific performance

It requires full performance of the contract as promised

Question 14

If a party who enforced the oral contract admits a contract was made, will the contract be enforceable?

Answer 14

Yes

Question 15

What are the 2 special UCC exceptions?

Answer 15

1. Oral contracts for customized/unique goods (Just For You!)
2. Oral contracts between merchants w/ documented proof + confirmation

Question 16

To satisfy the writing requirement, the contract needs…

Answer 16

1. To be documented (method doesn’t matter)
2. To be signed by the defendant
3. Basic elements of a contract
4. To be thorough + account for every possible “what if?”

Question 17

Parol Evidence Rule

Answer 17

A rule where a court won’t receive/consider any outside evidence that contradicts/varies the terms of the written contract

Question 18

Exceptions to the parol evidence rule are contracts that are…

Answer 18

-Subsequently modified
-Void
-Ambiguous + confusing
-Incomplete