BUL 2241- Business Law- CH 6-
Written Contracts -CH 9 -
NEGLIGENCE AND STRICT LIABILITY
Questions and Correct Answers
Statute of Fraud: - Answer PURPOSE
"To prevent rise of perjurious testimony regarding certain types of K's."
States which contracts must be in writing to be enforceable.
Types of K's that must be in writing: - Answer - Promises by executors to pay estate's debts out
of their own funds
- Promises to Answer for the debt or default of another - i.e. to act as surety
- Promises made in consideration of Marriage.
- Promises creating an interest in Land.
- Promises that by their terms cannot be performed within one year.
- Agreements for sale of goods for $500 or more
Leading Object Rule - Answer When one makes an oral promise to pay the debt of another
and the leading object of their promise is to benefit themselves, then the promise is still
enforceable even if not in writing.
Special circumstances for Agreements for sale of goods for $500 or more - Answer Seller
specially manufactures goods for buyer;
- Defendant admits in court there was a K; or
- Goods were delivered or had been paid for.
Exceptions to agreements that must be in writing: - Answer - Full Performance
- Part Performance
- Promissory Estoppel
- Note: all of these exceptions require additional corroborating evidence, otherwise they would
defeat the purpose of the statute of frauds
Requirements of the writing: - Answer - Must identify the parties
- Identify subject matter
, - Terms and conditions
- State consideration
- Signature of party to be sued.
Parol Evidence Rule - Answer "Evidence of prior or contemporaneous negotiations &
agreements that contradict, modify, or vary contractual terms is inadmissible if the written K is
intended as a complete & final expression of the parties."
Integration Clause: - Answer An integration clause is a statement that clearly expresses that
the contract the parties have entered into is a complete expression of the parties' agreement
and that neither party is relying on anything said or done outside of the written contract. This
type of clause is often found in contracts and is useful in bolstering the parole evidence rule
Exemption to Integration Clause - Answer - Incomplete/Ambiguous K Terms
- Misrepresentation or duress
Incomplete/Ambiguous K Terms - Answer Should a court determine that certain terms or
provisions of a contract are incomplete or ambiguous, a court will permit the introduction of
parole evidence to "fill in" or explain the meaning of incomplete or ambiguous terms.
Misrepresentation or duress - Answer A court will permit parole evidence that demonstrates
that one party misrepresented something in an agreement or that one party signed an
agreement under duress.
For statute of frauds purposes, an interest in land includes: - Answer - a house.
- a real estate mortgage.
- an easement
Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to
borrow money, but to do so, the bank requires Tuan to orally agree to pay the debt of the
corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is: - Answer enforceable
because of the leading object rule.
Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of
accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the sale,
which is sufficient against Bellman under the statute of frauds and which Bellman signs. Robin
fails to perform the contract and does not ship out the goods. Bellman sues. This contract is: -
Answer enforceable even without Robin's signature because both parties are merchants.
Written Contracts -CH 9 -
NEGLIGENCE AND STRICT LIABILITY
Questions and Correct Answers
Statute of Fraud: - Answer PURPOSE
"To prevent rise of perjurious testimony regarding certain types of K's."
States which contracts must be in writing to be enforceable.
Types of K's that must be in writing: - Answer - Promises by executors to pay estate's debts out
of their own funds
- Promises to Answer for the debt or default of another - i.e. to act as surety
- Promises made in consideration of Marriage.
- Promises creating an interest in Land.
- Promises that by their terms cannot be performed within one year.
- Agreements for sale of goods for $500 or more
Leading Object Rule - Answer When one makes an oral promise to pay the debt of another
and the leading object of their promise is to benefit themselves, then the promise is still
enforceable even if not in writing.
Special circumstances for Agreements for sale of goods for $500 or more - Answer Seller
specially manufactures goods for buyer;
- Defendant admits in court there was a K; or
- Goods were delivered or had been paid for.
Exceptions to agreements that must be in writing: - Answer - Full Performance
- Part Performance
- Promissory Estoppel
- Note: all of these exceptions require additional corroborating evidence, otherwise they would
defeat the purpose of the statute of frauds
Requirements of the writing: - Answer - Must identify the parties
- Identify subject matter
, - Terms and conditions
- State consideration
- Signature of party to be sued.
Parol Evidence Rule - Answer "Evidence of prior or contemporaneous negotiations &
agreements that contradict, modify, or vary contractual terms is inadmissible if the written K is
intended as a complete & final expression of the parties."
Integration Clause: - Answer An integration clause is a statement that clearly expresses that
the contract the parties have entered into is a complete expression of the parties' agreement
and that neither party is relying on anything said or done outside of the written contract. This
type of clause is often found in contracts and is useful in bolstering the parole evidence rule
Exemption to Integration Clause - Answer - Incomplete/Ambiguous K Terms
- Misrepresentation or duress
Incomplete/Ambiguous K Terms - Answer Should a court determine that certain terms or
provisions of a contract are incomplete or ambiguous, a court will permit the introduction of
parole evidence to "fill in" or explain the meaning of incomplete or ambiguous terms.
Misrepresentation or duress - Answer A court will permit parole evidence that demonstrates
that one party misrepresented something in an agreement or that one party signed an
agreement under duress.
For statute of frauds purposes, an interest in land includes: - Answer - a house.
- a real estate mortgage.
- an easement
Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to
borrow money, but to do so, the bank requires Tuan to orally agree to pay the debt of the
corporation if Entertainment, Inc. cannot. Tuan's guarantee to repay is: - Answer enforceable
because of the leading object rule.
Robin and Bellman, both merchants, orally agree to a contract for the sale of $5000 of
accessories. Bellman, the buyer, sends to Robin, the seller, a written confirmation of the sale,
which is sufficient against Bellman under the statute of frauds and which Bellman signs. Robin
fails to perform the contract and does not ship out the goods. Bellman sues. This contract is: -
Answer enforceable even without Robin's signature because both parties are merchants.
