Ch 17 t/f

4.0 (1 review)
In the absence of a statute requiring a writing, a contract may be oral or written.
Click the card to flip 👆
1 / 30
Terms in this set (30)
In the absence of a statute requiring a writing, a contract may be oral or written.
true
Because many oral contracts are legally enforceable, it is a good business practice in the preliminary stages of discussions to stipulate that no binding agreement is intended to be formed until a written contract is prepared and signed by the parties.
true
Under the statute of frauds, an oral contract must be completed within one year after performance begins.
false
An oral agreement to supply a line of credit for two (2) years cannot be enforced because of the statute of frauds.
true
A promise to grant a mortgage on real property does not require written proof because it is not a transfer of land.
false
No writing is required for a service contract that can be performed within one year after the date of the agreement.
true
The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default.
false
A promise to pay an attorney a fee owed by a third person can be enforced without a writing.
false
When the main purpose of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable, and the oral promise to pay the debt is binding.
true
A father's oral promise to his daughter and her fiancée made in consideration of their contemplated marriage is binding when made in the course of a serious discussion.
false
A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable.trueA writing required by the statute of frauds may be a signed note or memorandum.trueA note or memorandum does not have to contain all the essential terms of the contract to be valid.falseWhen a contract falls within the statute of frauds, the signatures of both parties must be shown to the court.falseAn insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was not binding because it was not properly signed.trueUnder the majority view, a contract that does not satisfy the statute of frauds is not enforceable.trueA person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract.falseThe parol evidence rule generally excludes words spoken before or at the time a written contract was executed from contradicting the terms of the contract.trueThe parol evidence rule generally precludes testimony that would contradict a complete written contract.trueParol evidence is not admissible to show fraud, duress or mistake.falseThe parol evidence rule is based on the theory that any oral agreement was abandoned when the contact was written.trueThe parol evidence rule does not apply to changes made after the signing of the contract.trueWhen persons enter into an agreement, it is presumed that they intent the agreement to have some effect.trueThrough incorporation by deference, a contract can consist of both the original document and the detailed statement that is incorporated in it.falseProvisions of a contract will be considered separately and not as a whole.falseIf words and numbers contradict each other in a contract, the rule of construction favors the words.trueIf a contract is unclear, it will be interpreted against the party who drafted it.trueDetails of performance of a contract not expressly stated in a contract will often be implied by the court.trueThe past performance of the parties under a continuing contract is important in determining what the contract means.trueCustoms and trade usage can override the express provisions of a contract.false