statue fraud

Question 1

What is required for modification of a contract under common law?

Answer 1

Additional consideration.

Question 2

Define the “parol evidence rule.”

Answer 2

A fully-integrated contract clearly written cannot be contradicted, varied, or altered by evidence of the parties’ prior negotiations, agreements, or contemporaneous oral agreements.

Question 3

Describe the UCC performance exception to the requirement of a record.

Answer 3

If the buyer takes possession or makes a payment accepted by the seller, Statute of Frauds is removed at least for the part possessed or paid for. If the seller accepts payment for the goods, at least for the amount reflected in that payment

Question 4

Define the “merchant’s confirmation memorandum.”

Answer 4

A Uniform Commercial Code (UCC) provision that allows one merchant to bind another based on an oral agreement with one signature. For example, if two merchants have underlying oral agreement and one merchant sends the other a fax, letter, or e-mail that confirms the terms of the oral agreements, the contract is enforceable even though only sign/authenticated by one party. The contract is enforceable against both parties.

Question 5

List the situations in which the partial performance exception for real property agreements apply

Answer 5

List the situations in which the partial performance exception for real property agreements apply

Question 6

Define the “fully integrated contract.”

Answer 6

Contract that is complete, final, and unambiguous.

Question 7

Describe the one-year rule under the statute of frauds.

Answer 7

Any contract objectively impossible to perform within one year from the date of contract formation (date of acceptance) without breaching the terms, must be in writing or have written evidence of it to be enforceable.

Question 8

To what types of contracts to which the parol evidence rule applies.

Answer 8

Final, complete, and unambiguous contracts (fully integrated contracts).

Question 9

List the exceptions to the parol evidence rule.

Answer 9

1. Defenses to formation (misrepresentation, mistake, duress);
2. Modification;
3. Ambiguities (because contract is not fully integrated);
4. Incomplete contract (because contract is not fully integrated).

Question 10

List the minimum requirements for a valid writing or record of a contract.

Answer 10

1. Identity of the parties;
2. Subject matter (quantity if more than one);
3. Signature (authentication) by party against whom you want enforcement).

Question 11

Describe a situation in which the special-ordered goods exception would apply.

Answer 11

Condition in which the seller has substantially begun performance or has made an irrevocable commitment to do so before the buyer cancels the contract.

Question 12

Against whom are ambiguities construed?

Answer 12

Against the party who drafted the contract.