Statute of Frauds

Question 1

Is Statute of Frauds Triggered?

Answer 1

SOF requires certain contracts to be in sufficient writing and signed by the party to be charged to be enforceable. When the seller is a merchant, there is no SOF defense if the party failed to respond to the witting in 10 Dys. The following contracts trigger SOF: consideration of marriage (A contract made upon consideration of marriage, such as a promise to do or not do something if we marry (e.g., prenuptial agreements); K that can’t be completed within one year (A contract incapable of being fully performed within one year of the making. Time starts to run the day after the contract is made, not how long it takes to perform under the contract. Performance must be literally impossible to perform in one year (e.g., contract to perform a concert on a date over one year after the date of contracting)); land K (The sale of an interest in land (e.g., sale, mortgage, leases, or easements of at least one-year duration); executor/administrator K, sell of goods $500 or more; and suretyship (MY LEGS).

Question 2

If Triggered, is Statute of Frauds Satisfied? - if in CL, it ends

Answer 2

There must be one or more writings that combined include the essential terms of the K and that is signed by the party to be charged. The writing need not be addressed to or sent to the other party. Also, the writing need not be made at the time the promise is made. The writing requirement is subject to a merchant confirmatory memo, judicial admission, and promissory estoppel.

Question 3

Merchant Confirmatory Memo (under if triggered)

Answer 3

The merchant’s confirming memo allows a writing to be enforced against both the signer and recipient when it is between two merchants. One party receives signed confirmation, and has reason to know its contents. So long as the recipient doesn’t object within ten days of receipt.

Question 4

Judicial Admission (if triggered)

Answer 4

In pleadings or testimony that there was an agreement to be enforced without a writing

Question 5

Promissory Estoppel Theory (if triggered)

Answer 5

● Where a party detrimentally relied on the agreement (HIT IN A DIFF HEADING FULL PE ANALYSIS)

Question 6

SOF Exceptions

Answer 6

Oral contracts may be enforceable and preclude the statute of frauds under certain circumstances.
(1) Marriage: Mutual promises to marry, made in consideration of marriage (ex promises between each other that are not the consideration for the marriage such as agreeing to sign a prenup in consideration for marriage)
(2) One Year: an oral contract that can’t be performed in one year, but full performance has occurred. If only part performance has occurred, restitution may be available.
(3) Real Estate: an oral contract for an interest in real estate where they conveyance has been made, or performed in part (payment, improvements, or possession-think PIP). Most jurisdictions require two of the three for PIP to work.
(4) Executor/Administrator/Suretyship: an oral contract to pay the debt of another where the “main purpose” of the agreement is the promisor’s own economic interest or an indemnity contract
(5) Goods $500+: an oral contract in Sale of goods $500 or more, where Goods are accepted or paid for, Admission in a pleading or court testimony, or Specially manufactured goods are not suitable for sale to others.