BLAW Chapter 18- Contracts in Writing

question

The requirements for a valid contract are:
answer

1. Offer and acceptance with mutual agreement 2. Consideration 3. Competent parties 4. Legality of purpose 5.*proper form*
question

The element of proper form requires that certain contracts must be:
answer

in writing to be enforceable. HOWEVER, not all contracts should be in writing because many of them are routine that writing a contract would be a waste of time and effort. Some contracts should be in writing to protect against later disagreement.
question

The Parole Evidence Rule:
answer

Any spoken or written words that are in conflict with that the written contract states cannot be introduces as evidence in a court of law.
question

Parol Evidence
answer

Any supplementary evidence or conditions, written or oral, that a party wants to add to a written contract. The word parol in parol evidence rule means “speech” or “words.”
question

Exceptions to the Parol Evidence Rule:
answer

-A common exception occurs when oral evidence serves to clear up an ambiguous part of an agreement. -Thus, oral evidence introduced after a contract is signed is legally accepted if it clarifies some point in the written agreement. -A few examples of exceptions to the parol evidence rule are: incomplete contracts, contracts that contain typographical errors, and voidable contracts. -In these cases, a court may rule that oral evidence is admissible.
question

The Parol Evidence Rule- Oral v. Written:
answer

-Although the PER applies to writings created at the same time as the written agreement, these writings tend to be treated differently than prior or contemporaneous oral agreements. -The writings are more readily admitted as part of the written agreement than is oral evidence regarding conditions or terms in the final agreement -As long as contemporaneous written documents do not substantially contradict what is in the final writing, judges can use their discretion to deem these other writings part of that agreement. -Consequently, the PER does not usually extrinsic written evidence.
question

The Statute of Frauds specifies:
answer

that certain kinds of agreements must be in writing to be enforceable note: while there is some variation in its interpretation, most states agree on the main principle of the statute. Note: • It is important to note that the Statute of Frauds does not prohibit a person from legally entering into oral contracts for certain kinds of agreements; it only specifies that certain contracts must be in writing to be enforceable.
question

What are the two types of contract ambiguities?
answer

1. Patent -Obvious on the face of the document -Allow outside evidence to explain ambiguity 2. Latent -Not obvious -Allow evidence to demonstrate ambiguity exists -If demonstrate ambiguity. THEN will allow additional evidence to explain the ambiguity
question

The Statute of Frauds applies to:
answer

executory contracts only; however, once a contract has been completed, it cannot be canceled merely because it was not in writing.
question

The Statute of Frauds specifies six types of contracts that must be in writing to be legally enforceable:
answer

1. Agreements by an executor or administrator to pay the debts of a deceased person. 2. Agreements to answer for the debts of another. 3. Agreements that cannot be completed in less than one year. 4. Agreements made in contemplation of marriage. 5. Agreements to sell any interest in real property. 6. Agreements to sell personal property for $500 or more.
question

Executor:
answer

a personal representative named in a will to handle matters involving the estate of the deceased person.
question

Administrator:
answer

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
question

Agreements by an Executor or Administrator:
answer

Either an executor or an administrator has legal authority to arrange for the distribution of the assets of a deceased person, and pay debts of the deceased. The Statute of Frauds requires that such a promise must be in writing to be enforceable.
question

A guarantee, or promise, to pay the debts or settle the wrongdoings of another if he or she does not make settlement personally is:
answer

not enforceable unless it is written.
question

An oral promise to pay the debts of another is:
answer

enforceable in some states, however, if the promise is not dependent on the inability or unwillingness of the other party to pay them.
question

Agreements that cannot be completed in less than one year:
answer

must be in writing. HOWEVER, if the life of the contract is indefinite and there is a possibility of its being completed within a year, it need not be in writing.
question

Antenuptial or Prenuptial Agreement is:
answer

an exchange of promises made by persons planning to marry. -It is enforceable only if it is reduced to writing before the marriage takes place. -This law applies to agreements by the parties to accept additional obligations not ordinarily included in the marriage contract.
question

Antenuptial agreements often include:
answer

1. A provision whereby they expire after a long period of time. 2. Antenuptial agreements relating to custody of children in the event of divorce or separation are unenforceable; courts decide custody issues.
question

Real Property or Real Estate is:
answer

Land and items permanently attached to the land, such as buildings or trees etc.
question

All contracts to sell real property or any interest in it must be:
answer

in writing to be enforceable. HOWEVER, an exception to the written requirement occurs when there has been partial performance of an oral agreement, thus proving the existence of a contract. Example: A buyer pays all, or a portion of, the purchase price.
question

Today’s UCC states that sales of personal property of _______ or more must be in writing.
answer

$500 or more Several states have increased this amount in recent years. o Example: A store owner and a display manufacturer have a long-standing relationship. The store owner requests a display stand be built, but does not have a written contract. Either of them can cancel, since the contract was not in writing and was legally unenforceable.
question

Exceptions to this requirement:
answer

1. Partial or full payment to the seller renders the contract enforceable because it shows the serious intent of the buyer, just as much as a written agreement does. 2.Auction Sales: Goods are sold to the highest bidder, and the sale is completed at the fall of the hammer. 3. Auction Bids made by telephone: The bidder is required to sign an agreement in which he or she agrees to be bound by the telephone bids made. 4.Online Sale: The Web page or e-mail is generally regarded as the writing that satisfies the Statute of Frauds.
question

What information is included in a Written Contract?
answer

Most important contracts are printed and signed by hand by the parties to the agreement. 1. A signature may include any symbol used by a contracting party intending to authenticate a written agreement. 2. This can include a firm’s logo or a purchase order. 3. A valid agreement can be entirely handwritten as long as it is legible. 4. It may even be a _______ of letters or e-mail among several persons.
question

To satisfy the Statute of Frauds, a written contract or agreement (memorandum) must contain:
answer

1. The names of the parties 2. The purpose of the agreement 3. A description of the consideration promised. 4. The date and place where the contract was made. 5. The signature of the parties
question

In addition written contracts frequently contain the following information:
answer

1. Warranties provided by the seller 2. An agreement to be bound by the laws in a specific state 3. An acknowledgment that the buyer has inspected the goods, or has waived his or her right to such inspection. 4. The form of acceptable payment (cash, certified check, etc.).

Get instant access to
all materials

Become a Member