BUS 204 Ch. 16

collateral promise
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Terms in this set (27)
collateral promise
A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.
intergrated contract
A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated, evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.
parol evidence rule
A substantive rule of contracts under which a court will not receive into evidence the parties' prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
prenuptial agreement
An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.
Statute of Frauds
A state statute under which certain types of contracts must be in writing to be enforceable.
You are surfing the internet and find a new computer game that looks pretty cool. The website asks you to read through the conditions associated with the use of the game and then click to agree to the terms. You click on the "I agree" button without reading any of the terms and then download and start using the game. The game turns out to be a lot of fun, so you make copies of it and share it with your friends.
What do you think might happen if the game company accuses you of violating the terms of the agreement, because one of those terms says you cannot make copies of the game?
The company could probably sue you for violating the agreement.
What is an exception to the statute of frauds?
Promissory Estoppel
What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices.
1. The contract is voidable.
2. The parties can complete the contract.
Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices.
1. An invoice
2. An email
3. A check
What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices.
1. The writing must provide evidence of agreement
2. The UCC requires that the quantity be included
Which is NOT an exception to the parol evidence rule?Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.What evidence outside of the written contract is a party allowed to present? Choose 2 answer choices.1. Evidence to prove agreement on an essential element of the contract 2. Evidence showing a change to the contract after it is signedWhat is the primary purpose of the Statute of Frauds?requiring written evidence of agreements concerning important transactionsWhat type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?voidableWhat is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?The contract must be objectively impossible to perform within one year.Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.1. contracts for the sales of land 2. promises made in consideration of marriage 3. collateral promises to pay the debt of another personUnder the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential?quantity of items being purchasedWhat must be included in a contract to satisfy the requirement that it be in writing? Choose 3 answers.1. Consideration to be paid must be defined in the contract. 2. The subject matter of the contract must be identified. 3. All of the parties to the contract must be named in the writing.What is the term for evidence of communication between parties to a contract that is not included in the contract?parol evidenceA party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract? Choose 3 answers.1. oral agreements that happened at the same time as contract formation 2. agreements prior to contract formation 3. negotiations prior to contract formationA partially integrated contract means:a contract contains only some terms, to which the parties agree but not others.May a writing consistent of multiple separate documents?Yes, if they are attached together in some manner.Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land:is not enforceable because it violates the statute of frauds.Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets:violates the statute of frauds, and is, therefore, unenforceable.Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that:1. e-signatures cannot be used on prenuptial agreements. 2. X e-signatures cannot be used on legally enforceable contracts. 3. X nothing; Lydia has no defense to the prenuptial agreement. 4. e-signatures can only be used in shrinkwrap agreements.Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy:will be unsuccessful, because Marla never signed the agreement.Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect:Kaylee will be allowed to introduce the evidence under the parol evidence rule.