ch.18

Question 1

What is the statue of frauds?

Answer 1

Rule of state law requiring certain types of contracts to be in writing in order to be enforceable

Question 2

What are the purposed of the statue of frauds?

Answer 2

• Ease negotiations by requiring sufficiently reliable evidence to prove the existence and
  specific terms of a contract
• Prevents unreliable, oral evidence from interfering with contractual relationship
• Prevents parties from entering into contracts with which they do not agree

Question 2

What contracts are subject to Statute of Frauds?

Answer 2

ALL OF THEM

Question 2

What are the contracts that are required to be in writing to be enforceable?

Answer 2

M – Contracts made in consideration of marriage (prenuptial agreements)
Y - Contracts that cannot be performed within one year from the date of their making
L – Land/Real Estate Contracts
E – Executorship
G - Goods valued at $500 or more
S – Suretyship

Question 3

A contract can be valid and still require what to be enforceable?

Answer 3

it may require the contract being in writing

Question 4

What is required to be in writing to satisfy the writing requirement for Statute of Frauds?

Answer 4

• Name of the parties to contract
• Subject matter/purpose of agreement
• Consideration given by both parties
• All relevant contractual terms
• Signature of party being sued (defendant)

Question 5

What are the exceptions to the writing requirement?

Answer 5

• Admission
• Partial performance
• Promissory estoppel
• UCC items discussed later
• Courts finding the above will enforce a contract to the extent the above facts are found

Question 6

What is the parole evidence rule?

Answer 6

Oral evidence of agreement made before or at the same time as a writing that the parties intend to be the complete and final version of their agreement is in admissible

Question 7

Why the Parole Evidence Rule?

Answer 7

To prevent evidence that substantially contradicts the agreement in its written form
being considered in enforcing the contract

Question 8

What are the exceptions to the Parole evidence rule?

Answer 8

• Contracts that are subsequently modified
• Contracts conditioned on orally agreed-upon terms
• Contracts that are not final, as they are part written and part oral
• Contracts with ambiguous terms
• Incomplete contracts
• Contracts with obvious typographical errors
• Void or voidable contracts
• Prior dealings or usage of trade

Question 9

What is an Integrated Contract?

Answer 9

A contract by its terms states this is the complete and final representation of parties’
agreement

Question 10

What is the effect of Integrated Contracts?

Answer 10

Prevents admissibility of parole evidence in enforcing the contracts