Statute of Frauds Flashcards
(24 cards)
What is the Statute of Frauds?
The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed by the party against whom enforcement is sought to be enforceable.
What does the Statute of Frauds prevent?
It prevents fraudulent claims and provides evidence of the agreement.
What happens if a contract fails to comply with the Statute of Frauds?
Failure to comply renders a contract unenforceable.
What are the classes of contracts that fall under the Statute of Frauds?
- Marriage contracts, 2. Contracts that can’t be performed within 1 year, 3. Land contracts, 4. Executor-administrator contracts, 5. Sale of goods contracts $500+, 6. Suretyship.
What are marriage contracts?
Agreements made in consideration of marriage, where one party’s promise to marry serves as consideration for the other party’s promise.
Do simple mutual promises to marry fall under the Statute of Frauds?
No, simple mutual promises to marry without additional conditions do not fall within the statute of frauds.
What is the One-Year Provision?
Contracts that cannot be fully performed within one year from the date of formation.
What is an important consideration for the One-Year Provision?
The impossibility of performance within a year must be evident at the time of contract formation.
Do lifetime agreements fall under the One-Year Provision?
No. Performance of a lifetime agreement could be completed within one-year because it is not impossible for someone do die within a year.
Can parties extend an employment contract orally?
Parties can bind themselves to a term in the written agreement with an oral renewal, but not for more than a year.
Are contracts with termination clauses within the Statute of Frauds?
No, if one of the parties can terminate the contract within one year of its making.
What are land contracts?
Agreements involving the transfer of any interest in land, including leases and mortgages.
What defines interest in land contracts?
Restatement 127 defines interest as ‘any right, privilege, power or immunity, or combination thereof.’
What are examples of land contracts under the Statute of Frauds?
Contracts to transfer a right of way, mortgages, leases, and subleases.
What are exceptions to the land provision?
Short-term leases (typically less than one year) and a lender selling a mortgage to another.
What are executor-administrator contracts?
Promises by an executor or administrator of a deceased person’s estate to personally answer for a debt or duty of the deceased.
What constitutes goods under the Statute of Frauds?
Contracts for the sale of goods valued at $500 or more.
What are exceptions to the ‘Goods’ provision?
Specially manufactured goods, admission of the contract’s existence in court, payment having been made and accepted, or goods received and accepted.
What are suretyship contracts?
Agreements where a person (the surety or guarantor) promises to answer for the debt or obligation of another person.
What are exceptions to the suretyship provision?
The main purpose rule, a third-party taking on a debtor’s obligation, or a third-party entering a contract with the obligee.
What is the main purpose rule?
Provides an exception if the surety’s primary motivation is to further their own economic advantage.
What must a writing satisfy to meet the Statute of Frauds?
It must identify the parties, show that a contract was made, set forth the nature of the contract, and state the essential terms.
What issues arise with the form of writing concerning the Statute of Frauds?
As long as the evidence shows that the parties made a contract and provides sufficient detail, it counts.
Can multiple documents fulfill the Statute of Frauds?
Yes, if they refer to the same subject matter and at least one is signed by the party to be charged.