Chapter 11 Questions and Case Review Business Law

Chapter 11 Questions and Case Review

Business Law

December 3, 2013

1. The goal of the Statue of Frauds is to maintain oral agreements. The statue of frauds establishes six exceptions that must be written in order to be enforceable.

2. There are six contracts that must be in writing under the Statue of Frauds: Contracts that will take a longer period of time to complete than one year, contracts transferring property rights, contracts for the sale of goods totaling an excess of $500 or more, contracts entered into by administrators, contracts that agree to pay debt on behalf of another person, and lastly contracts in consideration of marriage.

3. Terms of the agreement, statement of the subject matter, and signature of the party. All elements must be included. A simplified version would be who, what, when, and how. One must be able to identify basic elements of the contract.

4. The standard of construction rule directs that if the interpreter cannot understand the contract then it will not be enforceable or a liable contract. The interpreter is the person reading the contract a judge might be an interpreter. If one cannot see or read a part of the contract and there exist confusion then it will be the responsibility of the drafter.

5. An oral agreement made before a contract is signed will not usually be enforced by the courts to change something in the written contract.

6.When information is incomplete in a contract. If there is a mutual mistake, for example a typo will result in exceptions of the parole rule.

3. The oral promise is not enforceable because the duration is longer than a year. The time of limitations states that an oral agreement cannot exceed a year. An oral contract must be performed within 12 months. If the services cannot be performed within the 12 month period, the contract cannot be enforced. The promise of giving a child a free ride at the university and the 14 month salary payments it cannot be performed within one year.

5. The...