Statute of Frauds Flashcards
(22 cards)
What is the goal of the Statute of Frauds?
To prevent false assertions about a contract that was never really created
What two questions should you ask about the Statute of Frauds?
- Does the Statute of Frauds apply to this transaction?
- If so, has the Statute of Frauds been satisfied?
What kinds of contracts does the Statute of Frauds apply to?
- Marriage (a contract made in consideration of marriage, like a prenup)
- Suretyship (a contract promising to guarantee the debt of another)
- One Year (a contract that by its terms cannot be performed WITHIN one year from its making)
- UCC (applies to goods contracts for a price of $500 or more)
- Real Property (a contract for the sale of an interest in real property)
What is the main-purpose exception?
If the main purpose in agreeing to pay the debt of another is for the surety’s own economic advantage, then we are NOT in Statute of Frauds world.
How is the one-year rule interpreted?
VERY NARROWLY. The question is whether is no possible way for the contract to be performed within one year.
Are ALL contracts involving real property in Statute of Fraud world?
NO—only those transferring an interest in the property
Are leases of LESS than one year in Statute of Frauds world?
NO
What are the two main ways to satisfy the Statute of Frauds?
- By performance; or
- By writing
Can a service contract that CANNOT be performed within one year satisfy the Statute of Frauds if there is not a writing?
YES, so long as there has been full performance by either side
***Part performance of a services contract does NOT satisfy the Statute of Frauds
What must a writing for the Statute of Frauds cover?
The fundamental facts, which are:
1. Show that a contract has been made;
2. Identify the parties; and
3. Contain the essential elements of the deal.
Do you need both signatures on the writing to satisfy the Statute of Frauds?
No
Does the writing have to be a formal contract to satisfy the Statute of Frauds?
No
For real estate, what must the writing contain to satisfy the Statute of Frauds?
Signature of the parties
Can part performance of a real estate contract satisfy the Statute of Frauds?
YES, so long as ANY TWO of the three elements are met:
1. Possession;
2. Payment;
3. Improvements to the Land
What must a signed writing for goods (UCC) contain to satisfy the Statute of Frauds?
A signed writing will satisfy the Statute of Frauds. The writing MUST mention the quantity of goods sold.
**There is no need to mention the price.
**The contract is only enforceable under the Statute of Frauds for the quantity mentioned in the writing.
Does part performance of a goods contract (UCC) satisfy the Statute of Frauds?
YES, but only for the quantity delivered and accepted
What kind of goods (UCC) are exempt from the Statute of Frauds?
Custom-made OR specially manufactured goods
How can a maker of custom-made or specially manufactured goods satisfy the SOF?
By making a substantial beginning toward the manufacturing of goods
What is a judicial admission?
A statement in a pleading or during testimony
***Satisfies the SOF under the UCC
What is the rule for a confirming memo under the UCC?
The failure to object to a confirming memo within 10 days will satisfy the SOF, but only if BOTH parties are merchants.
Do you need a signed writing to authorize an agent to form a contract that is in SOF world?
Yes. This is known as the “equal dignity rule.”
If you have a deal that is in the SOF world, and the requirements are met, must a modification of the deal also satisfy the SOF requirements?
NOT NECESSARILY.
Ask whether the deal, with the alleged modification, would be in SOF world.
1. If YES, the SOF requirements MUST be met for the modification.
2. If NO, there is no SOF requirement, even though the initial deal was in SOF world.
