Week 9 - Test 2

Question 1

6 types of contracts that must be in writing accords to statutes of frauds

Answer 1

1. Marriage - promises in anticipation of
2. Year - cannot be performed within one
3. Land - real estate contracts
4. Estate debts - promises by an executor to pay
5. Goods over $500 - sales of (UCC rule)
6. Suretyship

Question 2

a promise or order to pay, such as a check; can be passed along like cash (must be in writing per UCC)

Answer 2

negotiable instrument

Question 3

interest in personal property to secure performance of an obligation; evidence of indebtedness (must be in writing per UCC)

Answer 3

security interest

Question 4

Courts like to take agreements out of S of F territory. Most courts hold that if the Statute of Frauds is not raised as an (1), or if the party admitted in (2) or (3) that there is an agreement, it is waived. The Statute may not be raised after the contract has been (4) and may not be raised in some cases if (5). (6) may also excuse the need for writing.

Answer 4

1. affirmative defense
2. court
3. court documents
4. fully performed
5. one party has performed
6. Conduct consistent with existence of a contract

Question 5

Unenforceability due to Statute of Frauds does not preclude enforceability due to (1) and (2)

Answer 5

1. quasi-contract

2. promissory estoppel

Question 6

claims have been abandoned

Answer 6

waived

Question 7

Written evidence need only amount to an acknowledgment of agreement by the (1). The written evidence does not have to be a (2) or even an (3) of the agreement.

Answer 7

1. party “to be charged” (party trying to get out of the contract)
2. formal contract
3. integrated statement (intended to be complete and final)

Question 8

agreement used in connection with software licenses; often found on the Internet as part of the installation process of software packages; usually requires the user to manifest assent by clicking “OK” button on a dialog box or pop-up window

Answer 8

click-wrap agreement

Question 9

agreement in anticipation of marriage that typically involves a promise to convey property when marriage iccurs or concerns division of property in the event of a divorce (must be in writing per S of F)

Answer 9

Prenuptial/antenuptial

Question 10

The “within a year” requirement does not apply if the contract is (1) within this time, regardless of whether performance is (2) or (3) within a year. Also unimportant is whether performance within a year actually (4). Promises with (5) and promises with (6), on of which can be performed in a year, are not subject to the requirement. The time requirement is also based from time of (7), not from when performance begins.

Answer 10

1. performable
2. likely
3. anticipated
4. occurs
5. uncertain duration
6. alternatives (e.g., restitution per year–but it is possible the person may die within the year)
7. agreement (2014 agreement to speak at Yale in 2016–subject to requirement)

Question 11

5 types of real estate transactions, all of which must be in writing

Answer 11

1. real estate sales
2. leases
3. mortgages
4. options on land
5. easements (limited right to use real property)

Question 12

The UCC’s “$500 or more” requirement does not apply to (1).

Answer 12

services

Question 13

4 exceptions to the UCC’s “$500 or more” requirement

Answer 13

1. goods specificlally manufactured for buyer, not suitable for sales to others + seller has made a substantial commitment
2. party “trying to get out of it” admits in court agreement was made
3. good have been received and accepted
4. payment has been accepted

Question 14

promise to guarantee the debt of another, made without benefit to the party making the promise (must be in writing–covers Estate and Suretyships of MYLEGS)

Answer 14

collateral promise

Question 15

liable for the payment of another’s debt or the performance of another’s obligation

Answer 15

surety

Question 16

agrees to be responsible for another’s debt or perofrmance under a contract if the other fails to pay or perform (under a surety)

Answer 16

guarantor

Question 17

3 possible exceptions to the suretyship writing requirement

Answer 17

1. cosigner instead of guarantor (equally liable instead of agreeing only if primary defaults)
2. promise to other signer to pay if he can’t (instead of to lender)
3. equal benefit or more benefit for guarantor (Dad acts as surety for son on car but uses the car as much as he does)

Question 18

fail the meet obligations

Answer 18

default

Question 19

one who participates jointly in borrowing

Answer 19

cosigner

Question 20

The E in MYLEGS regards someone responsible for carrying on the (1) of another, or the (2) of a deceased person. To take on the deceased’s (3) requires writing under S of F.

Answer 20

1. estate
2. finances
3. debt

Question 21

one who conducts the business of an estate (3 terms)

Answer 21

1. executor
2. personal representative
3. administrator

Question 22

the entity for managing finances of a deceased person or an incompetent

Answer 22

estate

Question 23

guarantees that a contract wil be performed according to its terms and specifications – type of surety (guarantor agrees to complete or to pay penalty for lack of completion)

Answer 23

performance bond

Question 24

surety agreement that guarantees that a contract will make appropriate, prompt and full payments for lable and material consumed on a project

Answer 24

payment bond

Question 25

assures a project will remain free of defects in workmanship or materials for a specific period of time

Answer 25

maintenance bond

Question 26

part of an answer to a complaint in which defendant attempts to limit or excuse liability, based on facts outside those claimed by plaintiff

Answer 26

affirmative defense

Question 27

The Statute of Frauds was made to prevent (1).

Answer 27

1. perjury

Question 28

Any contract within the scope of the Statute of Frauds may not be (1) unless a (2) is written and signed by the (3).

Answer 28

1. enforced 2. memorandum (containing important parts of the contract) 3. party to be charged (one against whom enforcement is sought) (defendant)

Question 29

The consequences of non-compliance with the Statute of Frauds is (1), NOT (2)!

Answer 29

1. unenforceability | 2. invalidity

Question 30

What was the ruling in the engagement ring/bounced check on CoD/click-wrap done by clerk example?

Answer 30

Contract unenforceable. Click-wrap = signing of contract, and this was not done by the consumer.

Question 31

When an email settlement was conducted by attorneys in the land dispute and the party challenged this settlement on the grounds of SoF, what was the ruling?

Answer 31

Yes to SoF because land. Yes enforceable because email signatures sufficed.

Question 32

The SoF is no longer in effect in its place of origin, (1), but remains in effect here everywhere except (2)

Answer 32

1. England | 2. Louisiana

Question 33

6 types of contracts under SoF

Answer 33

1. Marriage (contracts in consideration of) 2. Year (not doable within one) 3. Land 4. Estate debts (agreement to take on another's) 5. Goods (over $500) 6. Suretyship

Question 34

A (1)--designed to control transfer of property according to statute--is one example of a contract in consideration of marriage that falls under SoF. Another common example is (2), but to fall under SoF the promise must be made to the (3), NOT to (4)

Answer 34

1. prenuptial agreement 2. exchange of wedding assets 3. bride or groom (making the marriage consideration toward the assets) 4. each other (making the exchanges consideration for each other and conditional upon the marriage)

Question 35

automatic transfer of property to spouse, preventing, for example, writing your spouse out of a will--even for property owned before marriage. Prenup seeks to control this.

Answer 35

dower interest

Question 36

Opposite of dower interest, in a way--marriage owned prior to property is not auto-inherited

Answer 36

community property

Question 37

Any contract, irrespective of (1), must comply with the SoF if it cannot be (2) within one year of (3). Not applicable if performance within a year is (4), even if (5).

Answer 37

1. subject matter 2. performed 3. execution (signing) 4. possible 5. unlikely

Question 38

1. Does a contract to take care of a person until death need to be in writing? 2. Does a contract to employ someone for life need to be in writing? 3. Does a contract to employ someone for two years need to be in writing? 4. Does a covenant not to compete for two years need to be in writing?

Answer 38

1. No. The person could die within a year, completing the contract. 2. No. The person could die within a year, terminating employment and completing the contract. 3. Yes. It is not possible to perform two years' work in one year. 4. No. The person could die within a year, ending the contract (any ability to compete).

Question 39

The L part of MYLEGS applies both the (1) and to (2)

Answer 39

1. sales of land | 2. disposal of interest (easements, etc.)

Question 40

A deed does not have to be in writing under (1), but it does under (2).

Answer 40

1. Statute of Frauds | 2. property laws (for tracking chain of title)

Question 41

What is the difference between a suretyship, which falls under SoF, and co-signing?

Answer 41

A suretyship is a guarantee to take on someone else's debt only if the primary signer defaults and all remedies have been exhausted against him. In co-signing, both signers are liable and responsible for paying if the other doesn't.

Question 42

To fall under the SoF, a suretyship must be promised to the (1), NOT the (2). The SoF also does not apply if the guarantor promises to be (3).

Answer 42

1. creditor 2. debtor 3. primarily liable (send me the bill for his car)

Question 43

a type of insurance policy in which the bonding company pays and then pursues the deadbeat debtor

Answer 43

bond

Question 44

if party does not perform according to contract, someone else will be brought in to finish/repair and the bond will pay for that

Answer 44

performance bond

Question 45

a person needing a service (e.g., a house built) and uses a single contractor to coordinate--some of the sub-work may not be under his control (e.g., plumbing), but this ensure payment to the subcontractors to avoid them coming after the owner for a mechanic's lien. In other words, this releases that lien.

Answer 45

payment bond

Question 46

warranty on a product to guaranty workmanship (e.g., promise to replace a faulty appliance)

Answer 46

maintenance bond

Question 47

Does a book marked down to $450 from an original price of $900 fall under the SoF, requiring a contract in writing to be enforceable?

Answer 47

No. The marked-down price is under the $500 SoF threshold.

Question 48

Despite the L part of MYLEGS, (1) only have to be in writing if they are longer than a year

Answer 48

leases

Question 49

4 thigns needed to satisfy the "in writing" necessity under SoF

Answer 49

1. reasonably identify parties and subject of contract 2. indicate a contract has been made between the parties 3. state with reasonable certainty the material or essential terms of the contract (no ambiguity) 4. be signed by or on behalf of the party to be charged

Question 50

5 things that can satisfy te "signature" necessity under SoF

Answer 50

1. printed signature 2. typed signature 3. actual signature 4. initials 5. X

Question 51

It is immaterial for the party (1) to have signed the contract under SoF

Answer 51

seeking enforcement

Question 52

Generally the signature can appear (1) on the memorandum, though some statutes require it to be (2).

Answer 52

1. anywhere | 2. subscribed (at bottom; nothing afterward)

Question 53

Courts (1) the SoF wherever possible; many require it to be pled as an (2) or else it is (3). (4) to a contract may fall under SoF even if the actual contract does not.

Answer 53

1. avoid 2. affirmative defense 3. waived 4. Modification

Question 54

The SoF applies only to (1) contracts.

Answer 54

executory

Question 55

The equivalent of promissory estoppel with regard to the SoF--one party relied on the unenforceable promise to his or her detriment

Answer 55

"unconscionable injury"