Chapter 15

In: Business and Management

Submitted By marman6
Words 4166
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Chapter 15—Contracts in Writing

TRUE/FALSE

1. The parol evidence rule is an exclusionary rule of evidence.

ANS: F PTS: 1

2. The parol evidence rule only applies to written contracts.

ANS: T PTS: 1

3. The word “parol” literally means release.

ANS: F PTS: 1

4. The parol evidence rule would allow evidence to be introduced to explain what the parties meant by the term "serrated."

ANS: T PTS: 1

5. The parol evidence rule prohibits introduction of all evidence that would result in modifying written contracts.

ANS: F PTS: 1

6. The statute of frauds has to do with fraud in the inducement of a contract.

ANS: F PTS: 1

7. Most types of contracts are valid without being written.

ANS: T PTS: 1

8. The statute of frauds generally requires that both parties sign the writing.

ANS: F PTS: 1

9. A collateral promise is an undertaking to be primarily liable for the principal debtor's debt.

ANS: F PTS: 1

10. Jim promises to marry Cynda if Cynda will buy him a new Ferrari for his birthday. This promise must be in writing to be enforceable.

ANS: T PTS: 1

11. A part performance exception to the statute of frauds in many states requires both that the transferee has paid at least a portion of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on it.

ANS: T PTS: 1

12. A usage of trade is a practice or method of dealing, regularly observed and followed in a place, vocation, or trade.

ANS: T PTS: 1

13. In an employment agreement with Karl, Arnold promises to work for Karl for the rest of his life. This promise must be in writing to be enforceable.

ANS: F PTS: 1

14. Clara types a letter to David setting forth the terms of a contract between the two of them that falls within the statute of frauds. At the end of the letter, she types her…...

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