A Verbal Contract


If a specific future event terminates a party’s obligations under a contract, that future event is called a(n):

foreseeable event.

continuing condition.

avoidable condition.

condition subsequent.


If a verbal contract should be in writing according to the statute of frauds, but a party to the contract relies on the contract and takes some action to their detriment:

they have acted in violation of the statute of frauds.

a court may enforce the contract under the promissory estoppel doctrine.

a court will require that the other party to the contract restore whatever has been received from the party who took action under the contract.

a court will declare that the contract is voidable.


If a party to a contract performs almost all of their obligations under the contract and has not intentionally failed to perform the obligations under the contract that they have not completed:

a court may find that there has not been a breach of contract according to the substantial performance doctrine.

they have breached the contract.

a continuing condition has not been satisfied.

the contract is voidable.


If a specific event must occur before a party to a contract is required to perform their obligations under the contract, the contract:

is voidable.

must be in writing.

contains a condition precedent.

is not enforceable.


If a party to a contract unjustifiably fails to perform their obligations under a contract:

substantial performance will save them from having breached the contract.

that party can avoid breaching the contract by creating a novation.

a material breach of the contract has occurred.

the contract is cancelled.


If an unforeseen event occurs after a contract has been made that makes one of the party’s performance under the contract prohibitively more expensive than was contemplated when the contract was made:

the party whose performance is now more expensive still has to perform their obligations under the contract.

that party’s obligation to perform under the contract can be cancelled under the doctrine of commercial impracticability.

the parties to the contract will have to renegotiate the terms of the contract.

the contract is automatically breached.


If A and B make a contract and then, with A’s consent, C replaces B in the contract:

the contract has been breached.

A can still hold B liable if the contract is breached.

a novation has occurred.

B can hold C responsible if the contract is breached.


The statute of frauds requires that a contract that cannot be performed within 1 year be in writing to be enforceable. When does the time begin to run in such a contract?

The date that performance is to begin

The dates specified by the parties to the contract

30 days after the contract is made

The date on which the contract was made


Partial performance is an exception to the statute of frauds requirement that a contract be in writing to be enforceable because:

the actions of the parties in partially performing the contract demonstrate the existence of the contract and the terms of the contract.

once performance of obligations required in a contract begin, that performance must be completed.

partial performance is considered to be an admission that the parties to the contract have carefully considered the obligations they assumed in making the contract.

under English common law, any action under a contract makes a party to the contract responsible for fully performing the contract.


1. Does an agreement to get married have to be in writing to be enforceable?

No, a mutual promise to marry does not have to be in writing.

Yes, promises made in consideration of marriage are required to be in writing.

Yes, if the date of the marriage is to be more than 1 year from the date of the agreement.

Yes, if the parties to the agreement are citizens of different states.


1. Bill and Spenser entered into a contract on March 1, 2019, which required Spenser to build a house according to plans and specifications supplied by Bill. Under that contract, Spenser was required to begin work on the house by April 1, 2019, and complete the house by April 15, 2020. Was that contract required to be in writing? Why, or why not? Your response must be at least 75 words in length.


1. 4-H and Chuck, a farmer, entered into a verbal contract that required Chuck to deliver 20,000 bushels of corn to 4-H when Chuck harvested the corn crop on his farm. Chuck planted enough corn on his farm to produce the 20,000 bushels of corn that he was required to deliver to 4-H, but as the corn was growing, a severe storm dumped excessive amounts of rain on Chuck’s farm and damaged his corn crop. When Chuck harvested his corn crop, he was only able to salvage 7,000 bushels of corn and could not deliver the 20,000 bushels that he had agreed to deliver to 4-H. Does Chuck have a defense to breach of the contract with 4-H? What is that defense?

View this related post: C06S Business Ethics.


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