Chapter 15: Contracts In Writing Flashcards
Statute of frauds
Specifies those contracts that must be in writing to be enforceable.
Suretyship provision
Promise to pay the debts of another.
Surety
Person who promises to pay the debt of another.
Principal debtor
Person whose debt is being supported.
Collateral promise
Undertaking to be secondarily liable; that is, liable if the principal debtor does not perform.
Original promise
Promise to become primarily liable.
Main purpose
Object of promisor/surety is to provide an economic benefit for herself.
Executor-administrator provision
Applies to promises to answer personally for a duty of the decedent.
Executor or administrator
Person appointed to settle a descendent’s estate.
Marriage provision
Applies to promises in consideration of marriage but not to mutual promises to marry.
Land contract provision
Applies to promises to transfer any right, privilege, power, or immunity in real property.
Interest in land
And you’re right, privilege, power, or immunity in real property.
One year provision
Applies to contracts that cannot be performed within one year.
Possibility test
If it is possible for the agreement to be performed within one year, it is not within the statute of frauds.
Computation of time
The year runs from the time the agreement is made
Full performance by one party
Makes the promise of the other party enforceable under majority view.
Sale of goods
A contract for the sale of goods for the price of $500 or more must be evidenced by a writing to be enforceable.
Admission
And admission in pleadings, testimony, or otherwise in court makes the contract enforceable for the quantity of goods admitted.
Specially manufactured goods
And or contract for specially manufactured goods is enforceable.
Delivery or payment and acceptance
Validates the contract only for the goods that have been excepted offer which payment has been excepted.
Modification or rescission of contracts within the statute of frauds
Oral contrast modifying existing contracts are unenforceable if the resulting contract is within the statute of frauds
Compliance: general contract rule
the writing or writings must (1) specify the parties to the contract; (2) specify the
subject matter and essential terms; and (3) be signed by the party to be charged or by her agent
Compliance: sale of goods
the writing or writings must (I) be sufficient to indicate that a contract has been made between the parties, (2)
be signed by the party against whom enforcement is sought or by her authorized agent, and (3) specify the quantity of goods to be sold
Full performance
Statute does not apply to executed contracts
Restitution
When a contractors unenforceable because of the statute of frauds, a party may recover in restitution the benefits conferred on the other party in performance of the contract.
Promissory estoppel
Oral contracts will be enforced where the party seeking enforcement has reasonably and justifiably relied on the promise in the court can avoid injustice only by enforcement.
Parole evidence rule
Excludes inconsistent prior and contemporaneous oral and written agreement not incorporated into an integrated contract.
Integrated contract
Complete and exclusive agreement of the parties.
Course of dealing
Previous contact between the parties
Usage of trade
Practice engaged in by the trade or industry.
Course of performance
Conduct between the parties concerning performance of the particular contract.
Interpretation
Construction or meaning given the contract.
