Chapter 14

Question 1

A state statute that requires certain types of contracts to be in writing

Answer 1

Statute of Frauds

Question 2

A contract that has not been fully performed by either or both sides

Answer 2

executory agreement

Question 3

an act that cancels a contract

Answer 3

rescind

Question 4

The land itself, as well as buildings, trees, soil, minerals, timber, plants, crops, fixtures, and other things permanently affixed to the land or buildings

Answer 4

real property

Question 5

An interest in real property given to a lender as security for the repayment of a loan.

Answer 5

mortgage (deed of trust)

Question 6

The transfer of the right to use real property for a specified period of time.

Answer 6

lease

Question 7

An interest in real property for a person’s lifetime; upon that person’s death, the interest will be transferred to another party.

Answer 7

life estate

Question 8

A right to use someone else’s land without owning or leasing it.

Answer 8

easement

Question 9

A rule stating that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing

Answer 9

one-year rule

Question 10

A promise in which one person agrees to answer for the debts or duties of another person. It is a contract between the guarantor and the original creditor.

Answer 10

guaranty agreement

Question 11

In a guarantee situation, the contract between the debtor and the creditor, which the guarantor has guaranteed to pay.

Answer 11

original contract (primary contract)

Question 12

A person who agrees to pay a debt if the primary debtor does not.

Answer 12

guarantor

Question 13

An exception to the Statute of Frauds that states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.

Answer 13

main purpose exception (leading object exception)

Question 14

Real estate agents’ contracts to sell real property for another party, which are covered by the Statute of Frauds and must be in writing to be enforceable.

Answer 14

agents’ contract

Question 15

A rule stating that an agent’s contract to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Answer 15

equal dignity rule

Question 16

A contract entered into prior to marriage that specifies how property will be distributed upon the termination of the marriage or death of a spouse

Answer 16

prenuptial agreement (premarital agreement)

Question 17

establishes Statutes of Fraud for contracts for the sale and lease of goods

Answer 17

Uniform Commercial Code (UCC)

Question 18

A section of the Uniform Commercial Code (UCC) stating that sales contracts for the sale of goods priced at $500 or more must be in writing.

Answer 18

Section 2-201(1) of the Uniform Commercial Code (UCC)

Question 19

If the contract price of an original sales contract is below $500, it does not have to be in writing under the ______________

Answer 19

UCC Statute of Frauds

Question 20

A section of the Uniform Commercial Code (UCC) stating that lease contracts requiring payments of $1,000 or more must be in writing

Answer 20

Section 2A-201(1) of the Uniform Commercial Code (UCC)

Question 21

An equitable doctrine that allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.

Answer 21

part performance

Question 22

The combination of several writings to form a single contract.

Answer 22

integration

Question 23

Integration made by express reference in one document that refers to and incorporates another document within it.

Answer 23

incorporation by reference

Question 24

A doctrine that permits the formation of a contract if several documents are somehow physically attached to each other (e.g., in an envelope). The contract that is created consists of the terms of the separate documents.

Answer 24

implied integration

Question 25

A section in many contracts that defines many of the words and terms used in the contract.

Answer 25

glossary

Question 26

Rules applied by courts in defining ordinary words, technical words, specific terms, and other words used in contracts.

Answer 26

standards of interpretation

Question 27

Any practice or method of dealing that is regularly observed or adhered to in a place, a vocation, a trade, a profession, or an industry.

Answer 27

usage of trade

Question 28

Where a preprinted form contract is used, _____ words in a contract prevail over _______ words. _________ words prevail over both preprinted and typed words

Answer 28

typed, preprinted, Handwritten

Question 29

Any oral or written words outside the four corners of a written contract

Answer 29

parol evidence

Question 30

A rule stating that if a written contract is a complete and final statement of the parties’ agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract. There are several exceptions to this rule.

Answer 30

parol evidence rule

Question 31

A concept that a written contract is a complete and final statement of the parties’ agreement

Answer 31

complete integration

Question 32

A clause in a contract that stipulates that it is a complete integration and the exclusive expression of the parties’ agreement.

Answer 32

merger clause (integration clause)

Question 33

An equitable doctrine that permits enforcement of oral contracts that should have been in writing. It is applied to avoid injustice.

Answer 33

promissory estoppel (equitable estoppel)