Contract Formation: Statute of Frauds

Question 1

Certain contracts are unenforceable unless they are…

Answer 1

1. In writing
2. Signed by the party to be charged

Question 2

The contracts that are subject to the statute of frauds include…

Answer 2

MYLEGS

Marriage Provision
Over one Year Provision
Land sale contract
Executor payment of estate’s debts
Sale of goods of $500 or more
Suretyship agreement (ex. co-signer on a loan)

SOF: A statute adopted by jurisdictions to prevent fraud by specifying that certain agreements must be in writing and signed by the party against whom enforcement is sought.

Question 3

The statute of frauds is both a…

Answer 3

Formation requirement and an affirmative defense.

Question 4

What is the analytic framework for Statute of Frauds?

Answer 4

1. Is the agreement within the MYLEGS statute?
2. If so, is there “sufficient memorandum?” (sufficient to indicate a contract signed by a party to be charged)
3. If not, is the contract still enforceable because of an exception to the statute?

Question 5

What are the exceptions to the Statute of Frauds?

Answer 5

1. Promissory Estoppel
2. Full performance by both parties,
3. Full performance by one party
4. Part performance for a land sale contract