Chapter 15

In: Business and Management

Submitted By marman6
Words 4166
Pages 17
Chapter 15—Contracts in Writing


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


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


3. The word “parol” literally means release.


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


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


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


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


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


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


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.


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.


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


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.


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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