Chapter 15, Exam III

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Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs

contracts that must be in writing to be enforceable

Regional Delivery, Inc., and Safe Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease must be in writing if the land is valued at

$50, $500, or $5,000

Cody and Dora enter into an oral contract under which Cody agrees to work on Dora's farm for not less than one week. This contract is enforceable by

either party

Timber, Inc., and United Corporation enter into an oral contract for a sale of a lumber mill. Under the Statute of Frauds, before United takes possession, this contract is enforceable by

neither party

Ed and First Star Company enter into an oral contract under which Ed agrees to provide delivery service for First Star for nine months. This contract is enforceable by

either party

Andy and Biz Company (BC) enter into an oral contract under which Andy agrees to clean BC's office for two years. This contract is enforceable by

neither party

Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any personal benefit for the agreement. This contract is enforceable by

none of the parties

General Contractors (GC) and Holly enter into an oral contract under which Holly agrees to work on a GC project for sixteen months. This contract is enforceable by

neither party

Edy borrows $1,000 from First County Bank. Gil orally promises First County that he will repay the loan if Edy does not. Gil does not get any personal benefit for the promise. Gil's promise is

not enforceable

Lola agrees to assume Mira's debt to New Sales Corporation. Lola does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is for

$50, $500, or $5,000

International Business, Inc. (IBI, agrees to assume a debt of Southern Export Company to First National Bank. This promise is for the benefit of IBI. To be enforceable, the promise must be in writing if the debt is for

none of the above

Delta, Inc., agrees to assume a debt of Excel Company to First State Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

Delta

Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

the employment contract and the laptop purchase only

AAA Loans, Inc., is one of Beta Business Corporation's creditors. AAA guarantees Beta's debt to City Bank to forestall litigation. To be enforceable, this guarantee must be in writing

under no circumstances

Ollie buys a cup of coffee for $2, a magazine for $5, and a boombox for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at, or for more than, a certain price is governed by

The Uniform Commercial Code

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of

the speakers only

Little Goods Store and Major TV Sales Corporation enter into an oral contract for Major's sale to Little of eight DVD players for $100 each. After Little takes possession of the players, but before payment, this contract is

enforceable whether it is in oral or in writing

Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers

the apartment lease and the car purchase only

Pacific Applications, Inc., and Quality Resale Company (QRC) enter into an oral contract for Pacific's sale to QRC of six used forklifts for $1,900 each. Before QRC takes possession of the items, this contract is enforceable by

neither party

Nina and Owen enter into an oral contract for Nina's sale to Owen of a laser printer for $400. Before Owen takes possession of the printer, the contract is enforceable by

either party

Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to

the extent of the ten accepted cartons

Eve files a suit against Financial Associates, Inc. (FA), to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Eve foreseeably, justifiably, and detrimentally relied on a promise by FA

Mia orally promises Nick that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

neither party

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

the essential terms

E-Business, Inc. files a suit against Federated Financial Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in

some states

Property Development Company and Quality Land Corporation sign a written contract for a sale of land. In some states, to be enforceable, this contract must include

the parties' names

Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against

Theo only

Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. NFC begins to perform, but Macro refuses to pay.

The transaction between Marco and NFC falls within the Statue of Frauds'

one-year rule

Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. NFC begins to perform, but Macro refuses to pay.

Between Macro and NFC, there is

a written contract

Fine Services Company and Great Distributors, Inc., sign a written contract that does not involve a sale of goods. To be enforceable, this written contract must include

a statement of consideration

Consumer Goods, Inc., and Delta Distribution, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include

a quantity term

Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. The parties intend their written contract to be a final statement of the terms of their agreement.

Kris later disputes some of the provisions of the deal with Jeff. If the dispute results in litigation, a court will most likely exclude evidence that

contradicts the written terms

Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. The parties intend their written contract to be a final statement of the terms of their agreement.

The writing that Jeff and Kris signed is

a completely integrated contract

Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a contract. The only written evidence of the contract is a memo on DAI's letterhead as signed by a DAI officer in its files. The contract can be enforced if the memo includes

all essential terms

Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs

the admissibility in court of oral evidence

Glen and Haj sign a written contract. Glen claims that the parties later orally agreed to modify the contract. Any oral modification is likely not enforceable if it falls under

the Statute of Frauds

Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price.

Pete later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of

consistent additional terms

Odell and Pete sign a contract for the sale of Odell's Pizza Parlor to Pete. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Pete will negotiate a final price.

The writing that Odell and Pete signed is

a partially integrated contract

Dina files a suit against Engineering Associates to enforce a written con¬tract between the parties. Parol evidence will be admitted to prove

an orally agreed-on condition

Century Properties. Inc., and Dandy Capital Corporation enter into a con¬tract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at

$50, $500, or $5,000

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