Ch 15 – Written Contracts – Flashcards

Herb was interviewed for a job on Wednesday. The employer orally offered Herb a job right on the spot. Herb orally agreed to start working the following Monday, to be employed from that Monday, for one year thereafter. Three weeks after starting the job Herb was fired without cause and replaced by the employer's friend. Will Herb be successful in an action brought against the employer for breach of contract? Best answer:

Tony signed a contract agreeing to purchase a used, high-powered boat for $10,000. Prior to signing the contract, the sales representative explained that the boat motor was guaranteed for six months for all labor and parts. The written contract contained nothing about the warranty; however, it did have an integration clause in it indicating that this agreement was intended to be the full and complete agreement of the parties. Tony had problems with the boat motor, causing expensive repairs. Tony returned the boat to the sales representative for the repairs, only to learn the salesman denied knowing anything about a six-month warranty. If Tony sues, discuss the likely outcome. Best answer:

J.T. Tidwell entered into an oral contract with Robert Anthony for the purchase of 100 head of cattle at a price of $500 each. When the oral contract was made, Tidwell gave Anthony a check for $1000 as "earnest money or good faith money towards the purchase of the cattle." Anthony sold the cattle to someone else. Tidwell sued, asking the court to either compel Anthony to perform the contract or to pay damages that Tidwell suffered from the alleged breach of contract. What are the relevant issues: Best answer.

Thomas Reep, was the president of First National Bank in Clarksville. R.L. Moore approached Reep requesting the bank to open an account in the name of Texas Continental Express, Inc., a corporation owned by his two sons. R.L. had no affiliation with the corporation nor any financial interest in it. R.L. promised Reep that he would open several accounts in First National that would more than amount to the business of his sons. R.L. assured Reep that if anything came up in connection with the sons' account, Reep was to contract him directly. Upon these conditions, First National proceeded to furnish a regular checking account and bank draft services for Texas Continental. Sometime later, First National paid two drafts overdrawing the account by $448,942. When Reep contacted R.L. about the overdrawn account, R.L. assured Reep that money would be deposited in the account. When Reep called back a few days later to find out why the money had not been deposited, R.L. informed Reep that his wife had suffered a nervous breakdown the night before and the deal was off. First National Bank brought suit to enforce R.L.'s promise to pay the debts of Texas Continental. What is the likely outcome? Best answer:

What are some of the reasons behind having a statute of frauds?

Able hired Carr to restore Able's antique car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within one year. The agreement is:

Mast Industries and Bazak International were two textile firms. Mast orally offered to sell certain textiles to Bazak for $103,000. Mast promised to send documents confirming the agreement, but it never did. After a few days, Bazak sent a memorandum to Mast confirming the agreement, describing the goods, and specifying their quantity and the price. Bazak's officer signed the memo. Mast received the memo but never agreed to it in writing. When Mast failed to deliver the goods, Bazak sued. Who will win?

When Deana Byers married Steven Byers, she was pregnant with another man's child. Shortly after the marriage, Deana gave birth. The marriage lasted only two months, and the couple separated. In divorce proceedings, Deana sought child support. She claimed that Steven had orally promised to support the child if Deana would marry him. Steven claims he never made the promise. Who is the likely winner?

Landlord owned a clothing store and agreed in writing to lease the store's basement to another retailer. The written lease, which both parties signed, (1) described the premises exactly, (2) identified the parties, and (3) stated the monthly rent clearly. But an appeals court held that the lease did not satisfy the Statute of Frauds. Why not? Pick the best answer.

What action should Seton have taken to avoid this problem?

To show that an enforceable contract for the sale of land existed under the Statute of Frauds:

Sarah and Myra made an oral contract for Sarah to custom-make a new wardrobe for Myra, the contract valued at $10,000. Sarah made all the dresses and suits, and delivered them to Myrah. Myrah refuses to pay. Who wins?

Which of the following promises in consideration of marriage would be outside the Statute of Frauds?

Contracts that cannot be performed within ____ year(s) are unenforceable unless they are in writing.

Flora manufactures upscale silk flowers for resale. Rose, a retailer, telephones her and they discuss the price of the flowers, shipping time, and other details. Flora then faxes Rose a memo: "This confirms your order for 2,500 silk roses at $2.25 per stem. Colors: lavender, white, pink, orange, red. Delivery date: 10 days. [Signed] Flora." Rose receives the fax, reads it while negotiating a better deal with another manufacturer, and throws it in the wastebasket. Rose buys her flowers elsewhere and Flora sues. Rose defends, claiming there is no written contract because she, Rose, never signed anything. What happens?

The purchaser of land may be able to enforce an oral contract if:

On January 1st, We-R-Dusters (WRD) orally agreed to sell 500 Ostrich feather dusters to Best American Hotels (BAH), for a total price of $1,000. WRD delivered the dusters on March 1, but two weeks later, on March 15, BAH notified WRD that it would not honor the agreement. Which statement is correct?

During a candlelit dinner, George agrees to marry Julia, if she promises to buy him a new Ferrari for his birthday. George and Julia marry but she refuses to buy him the car. George sues Julia for breach of contract. Who wins?

Ramona, age 42, orally agreed to work for Brahma, Inc. for the rest of her life for $50,000 per year. This agreement would not be enforceable since it violates the one-year rule of the statute of frauds.

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts, but now the British government has repealed the writing requirement for most contracts.

Any contract involving a sale of goods of $100 or more must be in writing.

Sweet Plantation, Inc. made a written contract with Candy, Inc. whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound. A dispute arose as to how much sugar Sweet is to supply. The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.

Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012." This writing is sufficient under the statute of frauds to make the contract enforceable.

Whittle sent an order over the Internet for a $1,200 garage door. His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

Under the statute of frauds, the writing must: be signed by the defendant; and must state with reasonable certainty the name of each party, the subject matter of the agreement, and all of the essential terms and promises.

Raymond agrees to transfer an easement right to Sandra for $1,000. This contract is within the statute of frauds and therefore needs to be in writing to be enforceable.