Chapter 16

Question 1

Collateral promise

Answer 1

A secondary promise that is ancillary (subsidiary ) to principal transaction or primary contractual relationship, such as a promise made by one person to pay the debts of another if the latter fails to perform a collateral promise normally must be in writing to be enforceable

Question 2

Integrated contract

Answer 2

A written contract that constitutes the final expression of the parties agreement. If a contract is integrated, evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible

Question 3

Parol evidence rule

Answer 3

A substantive rule of contracts under which a court will not receive into evidence the parties prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties written contract

Question 4

Prenuptial agreement

Answer 4

An agreement made before marriage that defines each partners ownership rights in the other partners property. Prenuptial agreements must be in writing to be enforceable

Question 5

Statue of Frauds

Answer 5

A state statute under which certain types of contracts must be in writing to be enforceable