Statute of Frauds

Question 1

Statute of Frauds

Answer 1

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

1. Be signed by the party against whom enforcement is sought; and
2. Contain the essential elements of the deal.

Question 2

Mr. Sour

Answer 2

Statute of Frauds issues are often tested. You can remember which types of contracts are governed by the statute by using the mnemonic Mr. SOUR (Marriage, Suretyship, One year, UCC, Real property).

1. Marriage – a contract made upon consideration of marriage;
2. Suretyship – a contract to answer for the debt or duty of another;
3. One year – a contract that cannot be performed within one year of its making;
4. UCC – under the UCC, a contract for the sale of goods for a price of $500 or more; and
5. Real property contract – a contract for the sale of an interest in real property.

Question 3

Marriage Provision

Answer 3

Any agreement in consideration of marriage is within the Statute of Frauds, except the promises by each to marry the other (i.e., the marriage contract itself).

Question 4

Suretyship Provision

Answer 4

Suretyship is a three-party contract in which one party (the surety) promises a second party (the obligee) that the surety will be responsible for any debt or other obligation of a third party (the principal) resulting from the principal’s failure to pay or perform as agreed.