Statute of Frauds: A Guide to Contracts in Writing

Question 1

Which of the following is the primary consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is unenforceable.

Answer

The contract is void.

Answer

The contract is voidable.

Answer

The contract is illegal.

Question 2

What is the primary purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud and protect minors

Answer

To facilitate commerce and promote economic growth

Answer

To simplify litigation and reduce court costs

Answer

To ensure equal bargaining power between parties

Question 3

When determining whether a contract qualifies as a contract for the sale of goods, which of the following factors is irrelevant?

Accepted Answer

The intended use of the goods

Answer

The nature of the goods being sold

Answer

The quantity of goods involved

Answer

The price of the goods

Question 4

What is the essence of the parol evidence rule?

Accepted Answer

It prohibits the introduction of extrinsic evidence that contradicts or modifies the terms of a written contract.

Answer

It requires all agreements between parties to be in writing.

Answer

It allows parties to modify written contracts orally.

Answer

It has no bearing on the enforceability of contracts.

Question 5

What is the fundamental difference between a warranty and a representation in the context of contracts?

Accepted Answer

A warranty is a legally binding promise, whereas a representation is merely a statement of fact.

Answer

A representation is a legally binding promise, whereas a warranty is merely a statement of fact.

Answer

A warranty is more important than a representation in court.

Answer

There is no distinction between a warranty and a representation.

Question 6

What is a potential consequence of failing to comply with the Statute of Frauds' writing requirement?

Accepted Answer

The contract may be unenforceable.

Answer

The parties involved may face criminal charges.

Answer

The contract will be automatically terminated.

Question 7

One of the well-established exceptions to the Statute of Frauds is:

Accepted Answer

The contract is fully performed by one party.

Answer

The contract is in writing but not signed by both parties.

Answer

The contract is for the sale of a car.

Answer

The contract is for the sale of a copyright.

Question 8

The primary legal consequence of failing to comply with the Statute of Frauds is that the contract:

Accepted Answer

Is unenforceable.

Answer

Is void.

Answer

Is voidable.

Answer

Is valid but the parties may not be able to prove its terms.

Question 9

The parol evidence rule is a legal principle that:

Accepted Answer

Prevents parties from introducing evidence to contradict the terms of a written contract

Answer

Requires all contracts to be in writing

Answer

Allows parties to modify a written contract orally

Answer

Prohibits parties from entering into contracts for the sale of land without a writing

Question 10

What is the key distinction between a contract that is void and a contract that is unenforceable?

Accepted Answer

A void contract is unenforceable, while an unenforceable contract is void.

Answer

A void contract is illegal, while an unenforceable contract is valid.

Answer

A void contract is valid, while an unenforceable contract is void.

Answer

A void contract is illegal, while an unenforceable contract is unenforceable.

Question 11

The primary purpose of the "best evidence rule" is to:

Accepted Answer

Ensure that the most reliable evidence of a contract is presented in court

Answer

Prevent parties from introducing misleading evidence

Answer

Make it easier for judges to interpret contracts

Answer

Promote settlement of disputes

Question 12

What is the effect of partial performance on a contract that is otherwise unenforceable under the Statute of Frauds?

Accepted Answer

The contract becomes enforceable to the extent of the partial performance.

Answer

The contract becomes fully enforceable.

Answer

The contract remains unenforceable.

Answer

The contract is considered void from the outset.

Question 13

Which of the following is a valid defense against a claim that a contract is unenforceable due to the Statute of Frauds?

Accepted Answer

The contract was fully performed by both parties

Answer

The contract was written but the document was lost

Answer

The contract was oral but there was a witness present

Answer

The defendant is a minor

Question 14

Which of the following types of contracts is NOT subject to the writing requirement of the Statute of Frauds?

Accepted Answer

Contracts for the purchase of a used car

Answer

Contracts for the sale of goods worth more than $500

Answer

Contracts for the sale of land

Answer

Contracts for services that will not be completed within one year

Question 15

The primary purpose of the Statute of Frauds is to:

Accepted Answer

Prevent fraud and false claims

Answer

Promote clarity and certainty in contracts

Answer

Protect the rights of minors

Answer

Reduce the number of lawsuits

Question 16

What is the legal consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is unenforceable

Answer

The contract is void

Answer

The contract is voidable

Answer

The contract is illegal

Question 17

In which of the following situations would the Statute of Frauds NOT apply?

Accepted Answer

A contract to buy groceries worth $200

Answer

A contract to purchase a house for $600,000

Answer

A contract to provide legal services for a year

Answer

A contract to sell a car for $10,000

Question 18

Which of the following is an example of a contract that is implied-in-fact and therefore excepted from the Statute of Frauds requirement?

Accepted Answer

A contract to provide legal services

Answer

A contract to purchase a car

Answer

A contract to buy groceries

Answer

A contract to sell a house

Question 19

The Statute of Frauds was originally enacted in:

Accepted Answer

1677

Answer

1776

Answer

1877

Answer

1977

Question 20

Which of the following is NOT an exception to the Statute of Frauds, allowing oral contracts to be legally binding?

Accepted Answer

Implied contract

Answer

Partial execution

Answer

Estoppel

Question 21

What is the primary legal consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is unenforceable

Answer

The contract is void

Answer

The contract is voidable

Answer

The contract is illegal

Question 22

What is the significance of the "promissory estoppel" exception to the Statute of Frauds?

Accepted Answer

It allows oral contracts to be enforced based on one party's reasonable reliance

Answer

It requires the party seeking enforcement to prove fraud or misrepresentation

Answer

It is only applicable in cases involving the sale of real estate

Answer

It is not recognized in all jurisdictions

Question 23

Which of the following statements about the Statute of Frauds is accurate?

Accepted Answer

Its provisions may vary from state to state

Answer

It applies to all contracts without exception

Answer

It is a federal law that governs all contracts in the United States

Answer

It has been abolished in most jurisdictions

Question 24

What is the essential requirement for a writing to satisfy the Statute of Frauds?

Accepted Answer

It must include all essential terms and conditions of the contract

Answer

It must be signed by both parties involved in the contract

Answer

It must be notarized by a public official

Answer

It must be written on a specific type of paper

Question 25

Which of the following is a potential criticism of the Statute of Frauds?

Accepted Answer

It can lead to unfair outcomes in certain circumstances

Answer

It is overly complex and challenging to apply in practice

Answer

It discourages parties from entering into written contracts

Answer

It is ineffective in preventing fraud

Question 26

Which of the following is NOT a potential consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is automatically void

Answer

The contract may be deemed unenforceable

Answer

The parties may be liable for damages

Answer

The parties may be entitled to restitution

Question 27

Which of the following contracts is NOT subject to the Statute of Frauds?

Accepted Answer

Contracts for the provision of services

Answer

Contracts for the sale of goods

Answer

Contracts for the sale of real estate

Answer

Contracts for the lease of real property for more than one year

Question 28

The "sufficient memorandum" exception to the Statute of Frauds requires a written document that includes:

Accepted Answer

All essential terms of the contract

Answer

Signatures from both parties

Answer

Notarization

Answer

Witness signatures from two disinterested parties

Question 29

Which of the following is a valid defense against a claim that a contract is unenforceable under the Statute of Frauds?

Accepted Answer

Partial performance of the contract

Answer

The contract was entered into orally

Answer

The contract was not signed by both parties

Answer

The contract is for the sale of goods over $1000

Question 30

Under the Statute of Frauds, how can part performance affect a contract's enforceability?

Accepted Answer

Part performance can make an oral contract legally binding if the party seeking enforcement has already fulfilled some of their obligations.

Answer

Part performance has no impact on a contract's enforceability under the Statute of Frauds.

Answer

Part performance is only relevant for enforcing contracts involving the sale of goods.

Question 31

According to the Statute of Frauds, how does a void contract differ from an unenforceable contract?

Accepted Answer

Void contracts are legally invalid, while unenforceable contracts are valid but cannot be enforced by a court.

Answer

Unenforceable contracts must be written, while void contracts can be oral or written.

Answer

Void contracts can be ratified later, while unenforceable contracts cannot.

Question 32

When can promissory estoppel be used to override the Statute of Frauds' requirement for written contracts?

Accepted Answer

When one party has partially performed their contractual duties

Answer

When a written agreement exists

Answer

When the contract involves the sale of goods

Answer

When the contract involves the sale of real estate

Question 33

Which of these is NOT required for a written contract to satisfy the Statute of Frauds?

Accepted Answer

Including the date the contract was signed

Answer

Identifying the parties involved

Answer

Describing the subject matter

Answer

Clearly stating the terms and conditions

Question 34

What is the primary purpose underlying the enactment of the Statute of Frauds?

Accepted Answer

To reduce the incidence of fraud and perjury in contractual transactions

Answer

To protect minors from entering into binding contracts

Answer

To ensure that contracts are fair and equitable

Answer

To facilitate the formation of contracts

Question 35

What is the primary legal consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is unenforceable by law

Answer

The contract is still enforceable but with limited remedies

Answer

The contract is void

Answer

The contract is voidable

Question 36

What is the purpose of the "partial performance" exception to the Statute of Frauds?

Accepted Answer

To allow courts to enforce certain oral contracts that have been partially executed

Answer

To prevent the Statute of Frauds from being used as a defense to fraud

Answer

To provide an alternative way to prove the existence of a contract

Question 37

Which of the following is NOT an acceptable method of satisfying the writing requirement of the Statute of Frauds?

Accepted Answer

An oral agreement recorded on video

Answer

A signed and dated written agreement

Answer

A telegram that contains all the essential elements of the contract

Answer

An email exchange that includes all the necessary terms of the contract

Question 38

What is the essence of the "estoppel" exception to the Statute of Frauds?

Accepted Answer

It permits a party to enforce an oral contract where they have reasonably relied on the contract to their detriment

Answer

It allows a party to enforce an oral contract for the provision of services

Answer

It allows a party to enforce an oral contract for the sale of goods

Question 39

How does a "memorandum" differ from a "contract" under the Statute of Frauds?

Accepted Answer

A memorandum is a written note that contains the material terms of the contract, while a contract is a fully executed document that is legally binding on the parties.

Answer

A memorandum is only required for contracts involving the sale of real estate, while a contract is required for all other types of contracts.

Question 40

Which of the following is the most important consideration when drafting a contract to ensure compliance with the Statute of Frauds?

Accepted Answer

The clarity and precision of the language used in the contract

Answer

The incorporation of legal jargon

Answer

The number of signatures on the contract

Answer

The length of the contract

Question 41

Which of the following contracts is NOT required to be in writing under the Statute of Frauds?

Accepted Answer

A contract for the sale of a used car for $500

Answer

A contract to answer for the debt of another

Answer

A contract that cannot be performed within one year

Answer

A contract for the sale of land

Question 42

What is the primary purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud by requiring written evidence of certain agreements

Answer

To ensure that all contracts are fair and equitable

Answer

To limit the number of contracts that can be enforced

Question 43

Which of the following is an exception to the Statute of Frauds?

Accepted Answer

Promissory estoppel

Answer

Part performance

Answer

A contract for the sale of a business

Question 44

A contractor orally agrees to build a new garage for a homeowner. The homeowner later refuses to pay for the work. Is the contractor likely to be successful in enforcing the agreement?

Accepted Answer

No, the contractor is unlikely to be successful because the contract is not in writing.

Answer

It depends on the value of the work.

Answer

Yes, the contractor is likely to be successful because the work has already begun.

Question 45

What are the potential consequences of failing to comply with the Statute of Frauds?

Accepted Answer

The contract may be unenforceable in court.

Answer

The parties will be subject to criminal penalties.

Answer

The contract will be automatically rescinded.

Answer

The contract will be void from the beginning.

Question 46

A written contract for the sale of land is signed by only one party. Is this contract enforceable under the Statute of Frauds?

Accepted Answer

No, the contract is not enforceable because it is not signed by both parties.

Answer

It depends on the specific language of the contract.

Answer

Yes, the contract is enforceable because it is in writing.

Question 47

Which of the following statements is TRUE regarding the Statute of Frauds?

Accepted Answer

The Statute of Frauds applies only to certain types of contracts required to be in writing.

Answer

The Statute of Frauds requires contracts to be notarized.

Answer

The Statute of Frauds applies to all contracts.

Question 48

A party admits in court that they entered into an oral contract for the sale of goods. Is this admission sufficient to satisfy the Statute of Frauds?

Accepted Answer

Yes, the admission can be considered as evidence of the contract.

Answer

No, an oral contract is never enforceable.

Answer

It depends on the value of the goods.

Question 49

A company promises to pay a debt owed by its employee to a creditor. The promise is not made in writing. Is the company's promise enforceable?

Accepted Answer

No, the promise is not enforceable because it is not in writing.

Answer

It depends on the amount of the debt.

Answer

Yes, the promise is enforceable because it is a promise to pay a debt.

Question 50

Which of the following contracts is NOT required to be in writing under the Statute of Frauds?

Accepted Answer

A contract for the sale of goods under $500

Answer

A contract for the sale of land

Answer

A contract for a job that will take more than a year to complete

Answer

A contract for the sale of a car over $10,000

Question 51

What is the purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud and perjury by requiring certain contracts to be in writing

Answer

To protect the rights of consumers

Answer

To promote the efficient operation of the courts

Question 52

Which of the following is NOT an exception to the Statute of Frauds?

Accepted Answer

Partial performance

Answer

Admitting the contract in court

Answer

Promissory estoppel

Answer

Estoppel

Question 53

What is the consequence of failing to comply with the Statute of Frauds?

Accepted Answer

The contract is unenforceable

Answer

The contract is void

Answer

The contract is voidable

Answer

The contract is valid but cannot be performed

Question 54

Which of the following contracts is required to be in writing under the Statute of Frauds?

Accepted Answer

A contract for the sale of a house

Answer

A contract for the purchase of groceries

Answer

A contract for the repair of a car

Answer

A contract for the provision of legal services

Question 55

What is the parol evidence rule?

Accepted Answer

It prohibits the introduction of extrinsic evidence to contradict or vary the terms of a written contract

Answer

It requires all contracts to be in writing

Question 56

Which of the following is NOT a purpose of the parol evidence rule?

Accepted Answer

To protect the parties to a contract from fraud

Answer

To prevent the introduction of unreliable evidence

Answer

To ensure that all terms of a contract are in writing

Answer

To promote the efficient operation of the courts

Question 57

What is the exception to the parol evidence rule that allows for the admission of extrinsic evidence to show that a written contract was modified?

Accepted Answer

Subsequent oral agreement

Answer

Mistake

Answer

Fraud

Answer

Impossibility

Question 58

Which of the following is NOT a requirement for the subsequent oral agreement exception to the parol evidence rule?

Accepted Answer

It must be in writing

Answer

It must be made by the parties to the original contract

Answer

It must be supported by consideration

Question 59

What is the effect of a subsequent oral agreement that modifies a written contract?

Accepted Answer

It modifies the written contract

Answer

It voids the written contract

Answer

It creates a new contract

Answer

It has no effect on the written contract