Assessment Questions on Chapter 5

On October 1, 2015 Betty and Gary entered into an oral agreement for Gary to paint a portion of Betty's house.Betty told Gary that she does not want him to start painting her house until August 1, 2016.Gary agreed to the late start date - but warned Betty that it would take him four months to paint the house - because he would be painting it by himself.Which of the following statements is most accurate?

Group of answer choices

Under the statute of frauds, this agreement must be in writing in order to be enforceable because the contract will not be performed within one year.

Under the Statute of Frauds, this agreement does not need to be in writing because it will only take Gary four months to complete the contract - significantly less than one year.

The Statute of Frauds only applies to goods and does not apply to services.Gary painting the house is a service - so the statute of limitations does not apply to this contract.

Both the second and third answer is correct.

Flag question: Question 2

Question 2

1pts

Betty Jo has a large chain of retail stores.She frequently enters into agreements with Audrey - who owns a manufacturing company.Betty Jo and Audrey had a lengthy telephone conversation where they haggled over the price of widgets.Betty Jo finally got Audrey down from $1.25 a widget to $1.09 a widget.Audrey was not overly pleased - because it was not as much of a profit as she would have liked.Betty Jo sent Audrey a letter confirming their agreement.Audrey read the letter and just left it sitting on her desk for a month.Which of the following statements is most accurate?

Group of answer choices

Audrey will not be bound by the agreement because she never signed a written contractThe statute of frauds must be strictly complied with - and the letter is simply insufficienteven though the letter creates enough of a writing to believe that a contract really was entered into.

Audrey will be bound by the agreement even though she never signed a written contract.The letter creates enough of a writing to hold both partiesaccountable.

None of the answers are correct.

Audrey will not be bound by the agreement even though she never signed a written contract.The letter does not create enough of a writing to hold both partiesaccountable.

Flag question: Question 3

Question 3

1pts

Bridget owns a restaurant on the beach.She orders all of her supplies from Restaurants R Us.This month her total purchases came to $501.00.Which is the most accurate statement?

Group of answer choices

Under the statute of frauds, the agreement must be in writing in order to be enforceable because every purchase of goods in the sum of $500or moremust be in writing.

Under the statute of frauds, the agreement must be in writing in order to be enforceable because every contract in the sum of $500or more must be in writing.

Under the statute of frauds, the agreement must be in writing in order to be enforceable because any every purchase - regardless of the price - must be in writing.

The agreement does not need to be in writing to be enforceable.

Flag question: Question 4

Question 4

1pts

Frances wishes to buy Blackacre (a piece of real property)from Paul.She offers Paul $5,000.00 for Blackacre.Paul accepts.Frances paid Paul $5,000.00.Paul signed a deed conveying Blackacre to Frances. The contract is not in writing.Which is the most accurate statement?

Group of answer choices

The contract has already been performed so the statute of frauds no longer applies and cannot be used as a basis to set aside the already performedcontract.

The contract is enforceable as long as there is mutual assent and consideration.

The contract is not enforceable because of the statute of frauds - which requires, among other things, land contracts to be in writing.

The contract is not enforceable because of the Contract of Frauds - which requires, among other things, land contracts to be in writing.

Flag question: Question 5

Question 5

1pts

Frances wishes to buy Blackacre(a piece of real property)from Paul.She offers Paul $5,000.00 for Blackacre.Paul accepts.The contract is not in writing.Which is the most accurate statement?

Group of answer choices

The contract is enforceable as long as there is mutual assent and consideration.

Thecontract is enforceable under the statute of frauds even though it is not in writing as long as there is offer, acceptance, consideration,legality andnone of the parties is incompetent.

The contract is not enforceable under the statute of frauds - which requires, among other things, land contracts to be in writing.

The contract is not enforceable because of the Contract of Frauds - which requires, among other things, land contracts to be in writing.

Flag question: Question 6

Question 6

1pts

Mark agreed to sell his motorcycle to Scott for $450.00.Prior to the actual sale of the motorcycle, Mark and Scott talk.During that conversation, Scott asks Mark to include additional tires for the motorcycle.Scott agrees - for an additional fee of $100.00.Which of the following statements is most accurate?

Group of answer choices

In this case, the contract is enforceable since the original contract amount was less than $500.The modified contract amount is not relevant.

None of the above

In this case, the contract is enforceable since thecontract can be performed within one year.

The contract is not enforceable- as modified - since the statute of frauds requires contracts to be in writing if the agreement is for goods in excess of $500.

Flag question: Question 7

Question 7

1pts

Marsha is the administratrix of Harry's estate.Marsha told Sally's Home Health Care that she would pay the $550.00 that Harry owed Sally.Marsha said that she would pay the money out of her personal funds since Harry's estate did not have the money.Which is the most accurate statement?

Group of answer choices

The agreement does not need to be in writing in order to be enforceable.

Under the statute of frauds, this agreement must be in writing in order to be enforceable since Marsha is paying the debts of the estate out of her own personal funds.

None of the answers are correct.

Under the statute of frauds, agreements concerning the payment of estate funds in excess of $500 must be in writing.

Flag question: Question 8

Question 8

1pts

Megan went to Billy's garage and asked Billy to fix her car.Billy told Megan that it would cost $2,500 to repair her car.Billy wanted some sort of guarantee that his bill would be paid before he started the work.Megan asked Renee to "vouch" for her.Renee told Billy that she would pay for Megan's car if Megan failed to pay.Which is the most accurate statement?

Group of answer choices

Renee's agreement to pay for Megan's car is enforceable as long as Megan relied on it.

Both B & C

Renee's agreement to pay for Megan's car is not enforceable unless it is in writing since the statute of frauds requires contracts in excess of $500 to be in writing.

Renee's agreement to pay for Megan's car is not enforceable unless it is in writing since the statute of frauds requires suretyship agreements to be in writing.

Flag question: Question 9

Question 9

1pts

On December 1, 2015 Mary hired Sally to show her dog in the Madison Square dog show each year for the rest of her life.Which of the following statements is most accurate?

Group of answer choices

The statute of frauds does not apply to this type of agreement since the statute of fraud only applies to the sale of goods in excess of $500.00.

None of the above.

Under the statute of frauds, this agreement must be in writing in order to be enforceable because the contract will not be performed within one year.

Under the statute of frauds, this agreement does not need to be in writing because contracts of indefinite duration are excluded from the statute of frauds

Flag question: Question 10

Question 10

1pts

On March 1, 2015 Betty and Gary entered into an oral agreement for Gary to paint a portion of Betty's house.Gary told Betty that he would charge $650.00 to paint her house.Gary intended to start painting Betty's house on August 1, 2015.He anticipated finishing the work on or before October 1, 2015.Which of the following statements is most accurate?

Group of answer choices

The agreement does not need to be in writing to be enforceable.

Under the statute of frauds, this agreement must be in writing in order to be enforceable because it is for a service over the sum of $500.

The agreement must be in writing to be enforceable because every agreement that canbe completed within one year must be in writing.

Under the statute of frauds, this agreement must be in writing in order to be enforceable because every service must be in writing.

Flag question: Question 11

Question 11

1pts

On May 1, 2015 Jane borrows $4,500.00 from Joe.Jane agrees to pay Joe $500 every six months until the loan is paid off.Which of the following statements is most accurate?

Group of answer choices

Unless some portion of this agreement is reduced to writing, the courts will not enforce the agreement since the loan cannot be paid off within one year.

Courts will generally enforce an agreement like this where one of the parties has completely performed.

Courts will generally not enforce an agreement like this because it was not reduced to writing.

None of the above

Flag question: Question 12

Question 12

1pts

Sam agreed to sell his motorcycle to Barney for $650.00.Prior to the sale, Sam and Barney talked about the motorcycle.Barney realized that the motorcycle was missing a piece of the muffler.Sam agreed to lower the price to $499.00.Which of the following statements is most accurate?

Group of answer choices

In this case, the contract is not enforceable but the courts will nonetheless enforce the terms of the agreement based upon the concept of promissory estoppel.

The contract is not enforceable- as modified - since the statute of frauds requires contracts to be in writing if the agreement is for goods in excess of $500.The contract as it was originally entered into was for goods in excess of $500.It does not matter the the subsequent agreement reduced the price.

None of the answers is correct.

In this case, the contract is enforceable since the modified contract amount is less than $500.

Flag question: Question 13

Question 13

1pts

Vicki is the administratrix of Larry's estate.Vicki told Craig's Lawn Care that she would pay the $550.00 that Larry owed Craig out of the funds of Larry's estate.Which is the most accurate statement?

Group of answer choices

The agreement does not need to be in writing in order to be enforceable since the money to pay the debt is coming out of the estate proceeds.

In order to be enforceable, this agreement must be in writing.Under the statute of frauds, agreements concerning the payment of estate funds must be in writing.

None of the answers is correct.

In order to be enforceable, this agreement must be in writing.Under the statute of frauds, agreements involving funds over $500 must be in writing.