Question

14. The version of promissory estoppel in the Restatement​ (Second) of Contracts provides that if parties enter into an oral contract that should be in writing under the Statute of​ Frauds, the oral promise is enforceable against the promisor if certain conditions are met. Which of the following is NOT one of these​ conditions?

A. the promise relied on the oral promise

B. the reliance was foreseeable

C. injustice can be avoided only by enforcing the oral promise

D. the promise was in writing

E. the promise induces action or forbearance of action by another

26. If a student purchases software for​ $50 and the license agreement indicates that the software company is not liable for consequential​ damages, how much can the student recover if the software is defective and results in the loss of the​ $1,000 computer?

A. $50, because the loss of the computer is a consequential damage

B. $1000, because the loss of the computer is a consequential damage

C. $1,050, because this is the amount of the compensatory damages

D. $950, because the license fee must be subtracted from the loss to the computer

E. nothing, because the company is not liable for consequential damages

27. A lessee is unable to make payment under the terms of an existing lease agreement. The lessor orally agrees to accept a lesser amount of lease payment going forward. At the end of the lease​ term, the lessor sues the lessee for the unpaid amount of the full lease contract. Who will prevail and​ why?

A. The lessee will prevail because the oral agreement will be merged into the lease document according to the rule of implied integration.

B. The lessee will prevail because oral modifications are allowed.

C. The lessor will prevail because the modification was not in writing.

D. The lessee will prevail because of the doctrine of promissory estoppel.

E. The lessor will prevail as there is a signed contract for the full amount.

28. The part performance doctrine is an example of which of the​ following?

A. doctrine of incorporation by reference

B. an exception to the Uniform Commercial Code​ (UCC) Section​ 2-201(1)

C. doctrine of promissory estoppel

D. an exception to the Uniform Commercial Code​ (UCC) Section​ 2A-201(1)

E. an exception to the Statute of Frauds

35. Donna orally promises Harvey that she will buy his fishing boat for​ $1,000 if Harvey repaints it. For this promise to be enforceable under the doctrine of promissory​ estoppel, which must be​ true?

A. Harvey repaints the boat in reliance on​ Donna's promise to buy it.

B. The parties must get married to each other.

C. Donna's promise must be in writing.

D. Donna acts in reliance on​ Harvey's promise.

E. The cost of painting the boat must be over​ $500.

Answer 1

14. D is correct as the promise was not in writing.

26. C The plaintiff is eligible for the damages caused to the computer, and the price of software because it was not a consequential damage, but caused due to poor quality of software which was expected to work in certain way which it did not, owing to bad quality, for which the seller should be made liable.

27 C All lease contract should be in writing, so no oral modifications are enforceable unless they have been documented.

28 E Part performance is an exception to the statute of frauds.

35. A. For the promise to be enforceable under the doctrine of promissory estoppel, Harvey must paint the boat and incur some cost in reliance to Donna's promise. This is the basic requirement to satisfy the doctrine of promissary estoppel.