Chapter 15- Statute Of Frauds, Writing Agreement

Question 0

What contracts fall under the statute of frauds?

Answer 0

1. Contracts involving interests in land
2. Contracts that cannot by their terms be performed within one year from the day after the date of formation
3. Collateral (secondary) contracts, such as promises to answer for the debt or duty of another
4. Promises made in consideration of marriage
5. Under the UCC, contracts for sales of goods priced at $500 or more

Question 1

Statute of frauds

Answer 1

Certain agreements are required by law to be in writing.

If there is no written evidence of the contract, it may not be enforceable.

Question 2

What are contracts involving interests in land?

Answer 2

Contracts involving sale of land is not enforceable unless it’s in writing. Land is real property, which includes all physical objects that are permanently attached to the soil: buildings, fences, trees, soil.

Question 3

What is the one-year rule?

Answer 3

A contract that can’t, by its own terms, be performed within one year from the day after the contract is formed, must be in writing to be enforceable.

Question 4

What is the test for determining whether an oral contract is enforceable under the one year rule?

Answer 4

Whether performance is possible within one year, not whether it’s likely.

When it’s objectively impossible during the one year period, the oral contract will not be enforceable.

Question 5

Collateral promise

Answer 5

(Secondary promise) one that is ancillary (subsidiary) to a principle transaction or primary contractual relationship.

Question 6

Primary obligation

Answer 6

A contract in which a party assumes a primary obligation does not need to be in writing to be enforceable.

Question 7

Secondary obligations

Answer 7

A contract in which a party assumes a secondary obligation does have to be in writing to be enforceable.