Ch 5: Statute of Frauds

Question 1

What is the Statute of Frauds?

Answer 1

Contracts that fall within the Statute of Frauds are unenforceable unless evidenced by a writing.

Question 2

What must the writing include to satisfy the Statute of Frauds?

Answer 2

It must be signed by the party against whom enforcement is sought and contain the essential elements of the deal.

Question 3

What types of writings can satisfy the Statute of Frauds?

Answer 3

The writing need not be formal; receipts or correspondence can serve as memoranda.

Question 4

Can multiple writings be used to satisfy the Statute of Frauds?

Answer 4

Yes, the essential elements may be in more than one writing if one references the others.

Question 5

Is the writing required to be delivered to the party trying to enforce the contract?

Answer 5

No, it need not be delivered.

Question 6

What happens if the writing is lost or destroyed?

Answer 6

It still operates to satisfy the Statute of Frauds and its prior existence can be proved by oral evidence.

Question 7

What is the mnemonic to remember the types of contracts governed by the Statute of Frauds?

Answer 7

Mr. SOUR (Marriage, Suretyship, One year, UCC, Real property).

Question 8

What is the Marriage provision under the Statute of Frauds?

Answer 8

Any agreement in consideration of marriage is within the Statute of Frauds, except the promises by each to marry the other.

Question 9

What is Suretyship?

Answer 9

A three-party contract where one party promises to be responsible for the debt or obligation of a third party.

Question 10

What must a promise to answer for another’s debt generally be?

Answer 10

It must generally be in writing to be enforceable.

Question 11

What is the main-purpose exception related to Suretyship?

Answer 11

If the surety’s main purpose is his own economic advantage, the contract does not fall within the Statute of Frauds.

Question 12

What types of contracts related to Real Property are governed by the Statute of Frauds?

Answer 12

• Promise to create, transfer, or receive any interest in real property
• Contract for subsequent conveyance of an interest in real property
• Assignment of a right to purchase real property
• Option contract for sale of an interest in real property
• Promise to give a mortgage or other lien as security
• Real covenant
• Lease (unless for one year or less)

Question 13

What is required for part performance to make an oral contract enforceable in real estate?

Answer 13

At least two of the following acts: * Payment of all or part of the purchase price * Possession by the purchaser * Substantial improvement of the property by the purchaser.

Question 14

What happens when a party fully performs their promise in an oral contract for real property?

Answer 14

That party can enforce the other party’s oral promise unless the promise is itself the transfer of a real property interest.

Question 15

What is the One-Year provision under the Statute of Frauds?

Answer 15

Contracts that cannot be performed within one year must be in writing.

Question 16

When does the one-year period start?

Answer 16

The year starts the day after the contract is made.

Question 17

What is the threshold amount for the sale of goods under the UCC Statute of Frauds?

Answer 17

$500 or more.

Question 18

What are the requirements for a writing to satisfy the UCC Statute of Frauds?

Answer 18

• Indicate that a contract has been made
• Identify the parties
• Contain a quantity term
• Be signed by the party to be charged.

Question 19

What are the exceptions to the writing requirement under the UCC?

Answer 19

• Specially manufactured goods
• Payment and acceptance by seller
• Receipt and acceptance by buyer
• Failure to respond to a memorandum (when both parties are merchants).

Question 20

What is Promissory Estoppel?

Answer 20

A promise that induces action or forbearance is enforceable notwithstanding the Statute of Frauds if injustice can only be avoided by enforcement.

Question 21

What is a Judicial Admission?

Answer 21

A promise is enforceable against a party to the extent admitted by the party through discovery admissions or by testimony at trial.

Question 22

What is required for contracts that fall within the Statute of Frauds to be enforceable?

Answer 22

They must be evidenced by a writing that is signed by the party to be charged and contains the essential elements of the deal.

Question 23

What mnemonic can be used to remember the contracts that fall under the Statute of Frauds?

Answer 23

Mr. SOUR

Question 24

What does the ‘M’ in Mr. SOUR stand for?

Answer 24

Marriage: Any agreement in consideration of marriage

Question 25

What does the 'S' in Mr. SOUR represent?

Answer 25

Suretyship: A contract to answer for someone else’s debt or duty

Question 26

What does the 'O' in Mr. SOUR signify?

Answer 26

One year: A contract that cannot be performed within one year from its making

Question 27

What does the 'U' in Mr. SOUR indicate?

Answer 27

UCC: A contract for the sale of goods for $500 or more

Question 28

What does the 'R' in Mr. SOUR refer to?

Answer 28

Real property: Contracts to transfer any interest in real property

Question 29

What are the four requirements for a UCC memorandum?

Answer 29

* Indicates that a contract has been made * Identifies the parties * Contains a quantity term * Is signed by the party to be charged

Question 30

What are the exceptions to the writing requirement under the UCC?

Answer 30

* Specially manufactured goods * Partial payment made * Receipt and acceptance of goods * Failure to object to a memo within 10 days (when both parties are merchants)

Question 31

Under what conditions can an oral contract for real estate become enforceable?

Answer 31

When any two of the following three elements are met: possession, payment, or improvements to the land.

Question 32

What is promissory estoppel?

Answer 32

Detrimental reliance

Question 33

What is judicial admission?

Answer 33

An admission through discovery or by testimony at trial