B. Law 3391 Test 3 w/ McInturff Certification Review Exam Questions And Answers Verified Solutions.

Ch. 15 Contracts in Writing - correct answer Try to avoid verbal contracts. Terms of a written contract do not change overtime, while parties' recollections of oral contract terms might. Parol Evidence Rule - correct answer Protects a written contract from allowing parties to introduce any evidence in a lawsuit that would alter, modify, or vary the terms of the written contract. Statute of Fraud - correct answer Requires that certain designated types of contracts be evidenced by writing to be enforceable. Contracts within the Statute of Frauds - correct answer 1. Promises to answer for the duty of another 2. Promises of an executor or administrator to answer personally for a duty of the decedent whose funds he is administering 3. Agreements upon consideration of marriage 4. Agreements for the transfer of an interest in land 5. Agreements not be performed within one year Uniform Electronic Transactions Act - correct answer Gives full effect to electronic contracts and develops a uniform legal framework for their implementation. Electronic signatures are the same, in the eyes of the law, as if you signed in person. Suretyship Provision - correct answer the promise to pay the debts of another. Applies to the contractual promise by a surety (promisor) to a creditor (promisee) to perform the duties or obligations of a third person (principal debtor) if the principal debtor does not perform. "If X does not pay, I will" this promise is said to be collateral, in that the promisor is not primarily liable. (exception is "ORIGINAL PROMISE". example: "i pay 400$ to a bookstore to deliver them to my son" the statute of frauds doesn't apply.) Main Purpose Doctrine - correct answer a.k.a. "leading object rule" where the object or purpose of the promisor is to obtain an economic benefit for himself, the promise is NOT within the statute. Example: a company refused to supply materials on credit to a building contractor. The owner of the land promises the supplier he will pay the credit if the building contractor does not. Promise made to a Debtor - correct answer Not included in the suretyship provision. Example: Daniel owes Chris $100. Shelly promises Daniel that she will pay his debt in return for his laptop. Because Shelly made the promise with Daniel, not Chris, the promise may be oral. Executory-Administrator Provision - correct answer An executor or administrator is a person appointed by a court to carry on, subject to order of court, the administration of the estate of a deceased person (will). An executor or administrator's promise to pay a debt of the decedent must be in writing. Marriage Provision - correct answer This provision applies only if a promise to marry is made in consideration for some promise other than a reciprocal promise to marry. (example: greg promises to give title to land to betsy for her hand in marriage) Land Contract Provision - correct answer Covers promises to transfer any interest in land, which include any right, privilege, power, or immunity in real property. PART PERFORMANCE EXCEPTION: require that the transferee have paid a portion or all of the purchase price AND either have taken possession of the real estate or have started to make valuable improvements on the land can be oral to be enforced. One-Year Provision - correct answer requires all contracts that CANNOT be fully performed within one year of their making to be in writing or in proper electronic form. The Possibility Test - correct answer does not ask whether the agreement is likely to be performed within one year from the date it was formed; nor does it ask whether the parties think that performance will be within the year. The enforceability of the contract depends not on probabilities or on the actuality of subsequent events BUT on whether the terms of the the contract make it possible for performance to occur within one year. Computation of Time on Statute of Frauds - correct answer the year runs from the time the agreement is made, not from the time the performance is to begin. Sale of Goods - correct answer a contract for the sale of goods more than $500 are not enforceable unless there is some writing or record sufficient to indicate that the parties have made a contract for sale (Goods are defined as moveable personal property) Admission - correct answer The Code permits an oral contract for the sale of goods to be enforced against a party who in his pleading, testimony, or otherwise in court admits that a contract was made, but limits enforcement to the quantity of goods. Specially Manufactured Goods - correct answer The Code permits a seller to enforce an oral contract for goods specially manufactured for a buyer, but only if evidence indicates the goods were made for the buyer and the seller can show that he made a substantial beginning of their manufacture prior to receiving any notice of repudiation. Delivery or Payment and Acceptance - correct answer Oral contracts are enforceable when a buyer receives partial delivery and pays partially of the goods specified. This partial performance validates the contract ONLY for the goods that have been accepted or for which payment has been accepted. Modification or Rescission of Contracts within the Statute of Frauds - correct answer Oral contracts modifying previously existing contracts are unenforceable if the resulting contract is within the statute of frauds. Vice Versa is also true. Mutual oral rescission discharges all unperformed duties of a written contract. Compliance with the Statute of Frauds - correct answer Even though a contract is within the statute of frauds, a sufficient writing, memorandum, or record may justify its enforcement. The record doesn't need to be in any specific form. General Contracts Provisions - correct answer the note, memorandum, or record must include: 1. specify the parties to the contract 2. specify with reasonable certainty the subject matter and the essential terms of the unperformed promises 3. be signed by the party to be charged or by his agent This is to ensure that the parties have entered into a contract and need not exist at the time of the litigation; merely showing that the memorandum once existed is sufficient. Sale of Goods - correct answer 1. sufficient to indicate that a contract has been made between the parties 2. specifying the quantity of goods to be sold 3. signed by the party against whom enforcement is sought or by under her authorized agent or broker Full Performance - correct answer after ALL the promises of an oral contract have been performed by all the parties, the statute of frauds no longer applies. Restitution - correct answer a party to a contract that is unenforceable because of the statute of frauds may have acted in reliance upon the contract. In such case the party may recover in restitution the benefits conferred upon the other in relying upon the unenforceable contract. Merger Clause - correct answer states that a writing is intended to be the complete and final expression of the agreement between the parties. Supplemental Evidence - correct answer May be admitted: Course of Dealing - previous conduct between the parties. Usage of Trade - practice engaged in by the trade or industry. Course of Performance - conduct between the parties concerning performance of the particular contract. Supplemental Consistent Evidence Interpretation of Contracts - correct answer The ascertainment (determination) of the meaning to be given the written language is outside the scope of the parol evidence rule. (12 of them on pg. 291) Ch. 16 Third Parties to Contracts - correct answer 1. Assignment of the rights of a party to the contract 2. a delegation of duties of a party to the contract 3. the express terms of a contract entered into for the benefit of a third person Assignments of Rights - correct answer Every contract creates both rights and duties. An OBLIGOR is a person who owes a duty under a contract. An OBLIGEE is a person to whom a contractual duty if owed. An ASSIGNMENT OF RIGHTS is the voluntary transfer to a third party of the rights arising from the contract. The ASSIGNOR is the person who assigns a right to the ASSIGNEE. An effective assignment terminates the assignor's right to receive performance by the obligor. PARTIAL ASSIGNMENTS are the transfer of a portion of the contractual rights. Most contract rights are assignable. Delegation of Duties - correct answer A transfer to a third party of a contractual obligation. A DELEGATOR is a person who transfers their duty to an DELEGATEE. Requirements of an Assignment - correct answer No special form or particular words are necessary to create an assignment. The UCC does require a writing on all assignments beyond $5,000. Consideration is not required for an effective assignment. An assignment is irrevocable without the assignee's assent. Rights that are not Assignable - correct answer 1. materially change the obligor's duty or materially increase the risk or burden upon the obligor. (insurance liability coverage) 2. transfer highly personal contract rights (lawyers, doctors, accountants, etc.) 3. are prohibited by statute or public policy. Rights of the Assignee Obtains Rights of the Assignor - correct answer The general rule is that an assignee stands in the shoes of the assignor. Notice - correct answer To be valid, notice of the assignment does not have to be given to the obligor. Giving notice is advisable though, because if an obligor pays the assignor the assignee loses his rights against the obligor. Implied Warranties of Assignor - correct answer an implied warranty is an obligation imposed by law upon the transfer of property or contract rights. An assignor who receives value makes the following implied warranties to the assignee with respect to the assigned right: 1. that he will do nothing to defeat or impair the assignment 2. that the assigned right actually exists and is subject to no limitations or defenses other than those stated or apparent at the time of the assignment. 3. that any writing evidencing the right delivered to the assignee or exhibited to him as an inducement to accept the assignment is genuine and what it purports it to be 4. the assignor has no knowledge of any fact that would impair the value of the assignment Express Warranties of Assignor - correct answer