Business Law- Chapter 14 Flashcards Preview

Business Law > Business Law- Chapter 14 > Flashcards

Flashcards in Business Law- Chapter 14 Deck (20):

Statute of Frauds

A state statute that requires certain types of contracts to be in writing.


Real Property

The land itself, as well as buildings, trees, soil, minerals, timber, plants, crops, fixtures and other things permanently affixed to the land or buildings.



An interest in real property given to lender a security for the repayment of a loan.



The transfer of the right to use real property for a specified period of time.


Life Estate

An interest in real property for a person's lifetime; upon that person's death, the interest will be transferred to another party.



A right to use someone else's land without owning or leasing it.


One-year rule

A rule which states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.


Guaranty Contract

A promise in which one person agrees to answer for the debts or duties of another person. It is a contract between the guarantor and the original creditor.



A person who agrees to pay a debt if the primary debtor does not


Main purpose Exception

An exception to the Statute of Frauds which states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.


UCC Statute of Frauds Section 2-201(1)

A section of the Uniform Commercial Code which states that sales contracts for the sale of goods costing $500 or more must be in writing.


UCC Statute of Frauds Section 2A-201(1)

A section of the Uniform Commercial Code which states that lease contracts involving payments of $1000 or more must be in writing.


Equal Dignity Rule

A rule which says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.


Part Performance

An equitable doctrine that allows the court to order an oral contract for the sale of land and transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid justice.


Integration of Several Writings

The combination of several writing to form a single contract.


Incorporation by Reference

Integration made by express reference in one document that refers to and incorporates another document within it.


Parol Evidence

Any oral or written words outside the four corners of a written contract.


Parol Evidence Rule

A rule that says if a written contract is a complete and final statement of the parties' agreement, any prior or contemporaneous oral or written statements that alter, contradict or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract. There are several exceptions to this rule.


Merger Clause

A clause in a contract that stipulates that it is a complete integration and the exclusive expression of the parties' agreement.


Promissory Estoppel

An equitable doctrine that permits enforcement of oral contracts that should have been writing. It is applied to avoid injustice.