BUS 311 Week 2 Quiz Chapter 012

1. Competency of parties is not a mandatory requirement to make a contract valid.

BT: Knowledge

PO: 1

True False

1. The parol evidence rule states that any spoken or written words that are in conflict with what the written contract states cannot be introduced as evidence in a court of law.

BT: Knowledge

PO: 2

True False

1. The parol evidence rule refers to the addition of supplementary evidence or conditions that a party wants added to a written contract.

BT: Knowledge

PO: 2

True False

1. Oral evidence introduced after a contract is signed may be legally accepted if it clarifies some point in a written agreement.

BT: Knowledge

PO: 2

True False

1. The Statute of Frauds prohibits a person from legally entering into oral contracts for certain kinds of agreements.

BT: Knowledge

PO: 3

True False

1. The Statute of Frauds applies to executory contracts only.

BT: Knowledge

PO: 3

True False

1. Agreements by an executor or administrator to pay debts of a deceased person must be in writing to be enforceable.

BT: Knowledge

PO: 4

True False

1. A guaranty, or promise, to pay the debts or settle the wrongdoings of another if he or she does not make settlement personally is not enforceable unless it is written.

BT: Knowledge

PO: 4

True False

1. An oral promise, or guaranty, to pay the debts or settle the wrongdoings of another is enforceable only if made on behalf of family members.

BT: Knowledge

PO: 4

True False

1. If the life of an agreement is indefinite and could be completed within a year, the agreement need not be in writing to be enforceable.

BT: Knowledge

PO: 4

True False

1. It should be noted that antenuptial agreements often include a provision whereby they do not expire over an extended period of time.

BT: Knowledge

PO: 4

True False

1. All contracts to sell real property, or any interest in it, must be in writing to be enforceable.

BT: Knowledge

PO: 4

True False

1. A valid agreement should not be handwritten even if it is legible.

BT: Knowledge

PO: 5

True False

1. Written contracts seldom contain an acknowledgment that the buyer has inspected the goods, or has waived his or her right to such inspection.

BT: Knowledge

PO: 5

True False

1. Certified checks are not included in the forms of acceptable payment.

BT: Knowledge

PO: 5

True False

1. ___ is one of the essential elements of a valid contract.

A. Legality of purpose

B. Parol evidence

C. Reasonable claim

D. Memorandum of belief

1. To be enforceable, a contract must be:

A. court-ordered.

B. stamped.

C. in writing.

D. notarized.

1. The parol evidence rule:

A. states that any spoken or written words that are in conflict with what the written contract states should be introduced as evidence in a court of law.

B. refers to supplementary evidence or conditions to be added to a(n) existing written contract.

C. specifies that certain kinds of agreements must be in writing to be enforceable.

D. does not prohibit a person from legally entering into oral contracts for certain kinds of agreements.

1. It is stated that the terms of a written contract may not be changed by evidence of any prior agreement but may be explained, or supplemented, in the:

A. Uniform Commercial Code (UCC).

B. Statute of Frauds.

C. Parol Evidence Rule.

D. English Law.

1. Oral evidence introduced after a contract is signed is legally accepted if it clarifies some point in the:

A. oral agreement.

B. verbal agreement.

C. written agreement.

D. implied agreement.

1. Consistent oral statements may:

A. not be introduced into evidence unless a contract is in writing.

B. be introduced into evidence if a contract is not yet in writing.

C. not be introduced into evidence if a contract is in writing.

D. be introduced into evidence irrespective of whether a contract is in writing or not.

1. All of the following are true of the Statute of Frauds, EXCEPT:

A. the name is taken from the English law of 1677.

B. the name is a derivative of a law called "An Act for Prevention of Frauds and Perjuries."

C. it does not prohibit a person from legally entering into oral contracts.

D. it applies to executory and executed contracts.

1. The Statute of Frauds only specifies that certain contracts must be in writing to be:

A. beneficial.

B. rewarding.

C. indistinct.

D. enforceable.

1. The Statute of Frauds applies only to:

A. administrative contracts.

B. executory contracts.

C. business contracts.

D. notarized contracts.

1. That certain kinds of contracts should be in writing is a requirement under the:

A. Statute of Frauds.

B. Statute of Principles.

C. Statutes on Employment.

D. Statute on Discrimination.

1. Any agreements to sell an interest in real property shall have to be:

A. approved by a court-appointed judge.

B. in writing.

C. signed in the presence of an administrator.

D. oral or in writing to be enforceable.

1. A(n) _____ is a personal representative named by the court to perform as the executor would, in instances in which the deceased person has not left a will.

A. judge

B. administrator

C. attorney

D. agent

1. An executor is a person:

A. who inherits property from a deceased person.

B. who has drafted the will of the deceased.

C. who is named by a court to judge matters of law.

D. named in a will who serves as the personal representative of a deceased person.

1. To be enforceable, agreements that cannot be completed in less than one year:

A. must be in writing.

B. can be oral.

C. can be oral only if witnessed.

D. must be oral if for an amount less than $500.

1. To be enforceable, agreements must be in writing if they are for at least:

A. $100.

B. $200.

C. $500.

D. $1,000.

1. When a person dies before settlement of his assets, the estate is settled by a:

A. court-appointed manager.

B. family-appointed administrator.

C. family-appointed manager.

D. court-appointed administrator.

1. A(n)__ to pay the debts or settle the wrongdoings of another if he or she does not make settlement personally is not enforceable unless it is written.

A. guaranty

B. warranty

C. memorandum

D. evidence

1. To be enforceable, agreements in contemplation of marriage:

A. must be in writing and signed after the marriage.

B. must be in writing and signed before the marriage.

C. can be oral if the parties are both over the age of 21 years.

D. should be in the presence of witnesses.

1. An exchange of promises made by persons planning to marry is known as a(n):

A. arranged agreement.

B. self-arranged agreement.

C. mutual agreement.

D. prenuptial agreement.

1. In auction sales, in which goods are sold to the highest bidder, the sale is completed at the:

A. fall of the hammer.

B. signing of an agreement.

C. time of delivery of goods.

D. end of the auction.

1. The Web page or e-mail is generally regarded as the writing that satisfies the Statute of Frauds in the case of:

A. declared sale.

B. online sale.

C. implied sale.

D. telephone sale.

1. A contracting party intending to authenticate a written agreement may use any symbol as their:

A. acceptance.

B. seal.

C. signature.

D. revocation.

1. To satisfy the Statute of Frauds, a written contract or agreement is sometimes called a:

A. draft.

B. brief.

C. synopsis.

D. memorandum.

1. A memorandum may not include the:

A. family details of the parties.

B. names of the parties.

C. purpose of the agreement.

D. signatures of the parties.

1. Most important contracts are printed and signed by hand by the:

A. parties to the agreement.

B. notary who is present.

C. attorney of the parties.

D. judges deciding on the contract.