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Unformatted text preview: Chapter 17WRITING, ELECTRONIC FORMS, AND INTERPRETATION OF CONTRACTS TRUE/FALSE 1. A failure to sign and return a written contract establishes that there is not a contract. ANS: F MSC: AACSB Analytic 2. The statute of frauds applies to a five-year contract of employment that is terminated during the first year by the death of one of the parties. ANS: T MSC: AACSB Analytic 3. Under the statute of frauds, an oral contract must be completed within one year after performance be- gins. ANS: F MSC: AACSB Analytic 4. When a contract may be terminated at will by either party, the statute of frauds is not applicable be- cause the contract may be terminated within one year. ANS: T MSC: AACSB Analytic 5. Agreements between a buyer and her attorney concerning the purchase of real property must be in writing to be enforceable. ANS: F MSC: AACSB Analytic 6. A promise to grant a mortgage on real property does not require written proof because it is not a trans- fer of land. ANS: F MSC: AACSB Analytic 7. The statute of frauds applies to promises to answer for another party's debt, but does not apply to a promise to answer for another party's default. ANS: F MSC: AACSB Analytic 8. A promise to pay an attorney a fee owed by a third person can be enforced without a writing. ANS: F MSC: AACSB Analytic 9. If a personal representative of an estate makes a contract on behalf of the estate, a writing is not re- quired. ANS: T MSC: AACSB Analytic 10. A father's oral promise to his daughter and her fiance made in consideration of their contemplated marriage is binding when made in the course of a serious discussion. ANS: F MSC: AACSB Analytic 11. A contract for the sale of goods with a price of $500 or more requires written proof to be enforceable. ANS: T MSC: AACSB Analytic 12. A writing required by the statute of frauds may be in any form. ANS: T MSC: AACSB Analytic 13. A signed letter from an employer setting forth details of an oral contract of employment satisfies the statute of frauds. ANS: T MSC: AACSB Analytic 14. When a contract falls within the statute of frauds, the signatures of both parties must be shown to the court. ANS: F MSC: AACSB Analytic 15. An insurance company cannot refuse to pay the fire loss of the buyer of a house on the grounds that the sales contract for the house was not binding because it was not properly signed. ANS: T MSC: AACSB Analytic 16. Under the majority view, a contract that does not satisfy the statute of frauds is voidable. ANS: T MSC: AACSB Analytic 17. A person who is prevented from enforcing a contract because of the statute of frauds also is prevented from recovering the value of services, property, or money furnished the other party to the oral contract....
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.
- Spring '12