Understanding Business and Personal Law

Chapter 10: Form of a Contract

Form of a Contract


1.	The best evidence rule
		A)	provides for those people who have been incarcerated and served their time to have their rights reinstated by the courts.
		B)	explains the necessity of having legal counsel available when executing a contract.
		C)	means that a court would look with disfavor at photocopies or carbon copies of a written agreement, preferring instead to see the original agreement.
		D)	says that the evidence of oral statements made before signing a written agreement cannot be presented in court to change or add to the terms of that agreement.


2.	Parol evidence may be used to show that certain terms were agreed to but incorrectly typed in the written contract.
		A)	TRUE
		B)	FALSE


3.	The parol evidence rule
		A)	provides for those people who have been incarcerated and served their time to have their rights reinstated by the courts.
		B)	explains the necessity of having legal counsel available when executing a contract.
		C)	means that a court would look with disfavor at photocopies or carbon copies of a written agreement, preferring instead to see the original agreement.
		D)	says that the evidence of oral statements made before signing a written agreement cannot be presented in court to change or add to the terms of that agreement.


4.	Agreements to marry require a written contract.
		A)	TRUE
		B)	FALSE


5.	The purpose of the Statute of Frauds is to
		A)	provide an enforceable contract for the purchase of items that cost less than $500.
		B)	avoid contracts that take more than a year to perform.
		C)	provide the court the ability to void an illegal contract.
		D)	require that certain contracts be in writing.


6.	If you don't understand something in a contract, cross it out before you sign it.
		A)	TRUE
		B)	FALSE


7.	When ambiguous language exists in a contract, the court will usually lean in favor of the party who drafted the contract.
		A)	TRUE
		B)	FALSE


8.	The following types of contracts must be in writing:
		A)	contracts in consideration of marriage, contracts involving equitable estoppel, and contracts for the sale of goods of $500 or more.
		B)	contracts involving union representation, contracts requiring less than a year to perform, and contracts for the sale of goods valued at $500 or more.
		C)	contracts to pay the debts of others, contracts requiring more than a year to perform, and contracts for the sale of goods valued at $500 or more.
		D)	contracts to pay the debts of others, contracts requiring less than a year to perform, and contracts in consideration of marriage.


9.	The written evidence of an agreement
		A)	should contain the signature of the party who may be charged on the agreement.
		B)	does not apply to executory contracts.
		C)	should not contain any handwritten items or changes.
		D)	should be formal in order to satisfy the Statute of Frauds.


10.	The Statute of Frauds pertains to all contracts.
		A)	TRUE
		B)	FALSE