Chapter 5. The Statute Of Frauds (110-150)

Question 1

In consideration of A’s marrying B, C orally promises A a settlement. In consideration of A’s marrying B, C orally promises A a settlement. Is C’s promise within the scope of the Statute of Frauds?

Answer 1

C’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 124(b)

Question 2

A and B orally agree to marry three years later. Is this enforceable?

Answer 2

The contract is unenforceable because not to be performed within a year, even though it is excepted from the provision for contracts in consideration of marriage. Restatement 2d of Contracts § 110(b)

Question 3

S, executor of D, promises C, a creditor of D at the time of D’s death, in consideration of C’s promise to forego part of the debt, to guarantee payment of the balance by the estate. Is this within the executor provision of the Statute of Frauds?

Answer 3

S’s promise is within the executor provision. Restatement 2d of Contracts § 111(a)

Question 4

S, executor of D, contracts with C for funeral services, or for work and material necessary in closing D’s business, promising orally “I guarantee that D’s estate will pay you.” Is this within the executor provision of the Statute of Frauds?

Answer 4

S’s promise is not within the executor provision. Restatement 2d of Contracts § 111(a)

Question 5

S, executor of D, promises C, a creditor of D at the time of D’s death, in consideration of C’s promise never to prove his claim against D’s estate, to pay the debt. Is this within the executor provision of the Statute of Frauds?

Answer 5

S’s promise is not within the executor provision. See § 115. Restatement 2d of Contracts § 111(b)

Question 6

S and C enter into a contract in which S promises that if C will assent to S’s appointment as administrator of D’s estate, S will pay a debt owing by D’s estate to C. Is this within the administrator provision of the Statute of Frauds?

Answer 6

S’s promise is not within the administrator provision. See § 116. Restatement 2d of Contracts § 111(b)

Question 7

D commits a tort against C. S promises C orally for consideration to pay C the damages which C has suffered from the tort if D fails to do so. Is this within the scope of the Statute of Frauds?

Answer 7

S’s promise is within the Statute of Frauds, since D is under a direct duty to C, and S’s promise is to perform D’s duty if D fails to do so. Restatement 2d of Contracts § 112(b)

Question 8

S promises C orally to guarantee the performance of any duty that D may incur to C within the ensuing year. Relying on this promise, C enters into contracts with D, by which D undertakes within the year to sell materials for a house and to act as supervising architect during its construction. D, without excuse, fails to perform his contract. Is S’s promise within the scope of the Statute of Frauds?

Answer 8

S’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 112(b)

Question 9

D, an infant, obtains goods on credit from C, who is induced to part with them by S’s oral guaranty that D will pay the price as agreed. The goods are not necessaries but D is subject to a duty, though it is voidable. Is S’s promise within the scope of the Statute of Frauds?

Answer 9

S’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 112(b)

Question 10

D, an insane person under guardianship, obtains goods on credit from C, who is induced to part with them by S’s oral guaranty that D will keep his promise to pay the price. D’s promise is void. Is S’s promise within the scope of the Statute of Frauds?

Answer 10

S’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 112(b)

Question 11

S obtains goods from C on this oral promise: “Charge them to D, and, if he does not pay for them, I will.” S has no authority to charge the goods to D, and D makes no promise to pay for them. Is S’s promise within the scope of the Statute of Frauds?

Answer 11

S’s promise is not within the suretyship provision of the Statute of Frauds, since D is under no duty, and hence is not a principal obligor. Restatement 2d of Contracts § 112(c)

Question 12

In consideration of the delivery of goods by C to D at S’s request, S orally promises to pay the price of them. Is S’s promise within the scope of the Statute of Frauds?

Answer 12

S’s promise is not within the Statute of Frauds, since D is under no duty. Restatement 2d of Contracts § 112(c)

Question 13

S induces C to sell goods to D and take D’s note for the price by warranting orally or in an unsigned writing that D’s note is not voidable on account of infancy. Is S’s warranty within the scope of the Statute of Frauds?

Answer 13

S’s warranty is not within the Statute of Frauds, whether D’s promise is or is not voidable, since S does not bind himself for the performance which D has undertaken. S will become liable for such damages as C may suffer if D is an infant and whether D’s note is or is not voidable it will not be discharged by S’s performance. Restatement 2d of Contracts § 112(c)

Question 14

D contracts with S to build a house for S. C contracts with D to furnish materials for the purpose. D in violation of his contract with C fails to pay C for some of the materials furnished, and C justifiably cancels his contract with D. S orally promises C that if C will continue to furnish D with materials that C had previously agreed to furnish, S will pay the price therefor. C does so. Is S’s promise within the scope of the Statute of Frauds?

Answer 14

S’s promise is not within the Statute of Frauds because D is not bound to pay C for the materials supplied in consideration of S’s promise. Restatement 2d of Contracts § 112(c)

Question 15

S, for consideration, orally promises E to pay a debt of E’s son D to C, if D fails to pay it at maturity. Is S’s promise within the scope of the Statute of Frauds?

Answer 15

S’s promise is not within the Statute of Frauds because it was made to E, not to the creditor C. Restatement 2d of Contracts § 112(d)

Question 16

D and S severally and unconditionally in an unsigned writing promise C, for consideration inuring to the benefit of both D and S, that C shall be paid the sum of $100 a month for the next six months. Is S’s promise within the scope of the Statute of Frauds?

Answer 16

D has induced S to make this promise by promising to hold S harmless. If C knows or has reason to know of this contract between D and S, when S makes his promise to C, S’s promise is unenforceable. Otherwise S’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 112(d)

Question 17

D induces S to purchase goods from C. Though the purchase is for D’s benefit, the goods are delivered by C to S, who afterwards turns them over to D. S orally promises C to pay for them. D, as part of the transaction, guarantees C that S will pay. C neither knows nor has reason to know that S is a surety. Is S’s promise within the scope of the Statute of Frauds?

Answer 17

Though S is a surety as between himself and D, his promise is not within the Statute of Frauds. D’s promise also is not within the Statute, since the duty to pay is in truth his. Restatement 2d of Contracts § 112(d)

Question 18

D and S jointly and orally promise C to pay C for goods which C knows are to be delivered for the exclusive benefit of D. Is S’s promise within the scope of the Statute of Frauds?

Answer 18

If S is under no several duty, his promise is not within the Statute of Frauds. Restatement 2d of Contracts § 113(b)

Question 19

The facts being otherwise as stated in Illustration 1, the promise is joint and several. Is S’s promise within the scope of the Statute of Frauds?

Answer 19

S’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 113(b)

Question 20

The facts being otherwise as stated in Illustration 2, C has no reason to know that the goods are not for the benefit of both parties. Is S’s promise within the scope of the Statute of Frauds?

Answer 20

S’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 113(b)

Question 21

D owes C $100 and pays that sum to S in trust to pay it to C. Then or thereafter S orally promises C to pay D’s debt. Is S’s promise enforceable?

Answer 21

Whether or not C knows of the trust, C acquires an enforceable right against S. Restatement 2d of Contracts § 114(b)

Question 22

D pays $100 to S in trust to apply it to whatever judgment C may recover against D in an action then pending. S orally promises C to pay the judgment in full. C recovers judgment for $125. Is S’s promise enforceable?

Answer 22

C has an enforceable right against S for only $100. Restatement 2d of Contracts § 114(b)

Question 23

S is a member of a partnership. After he retires but before the debts of the partnership are paid, S orally promises C, a partnership creditor, to pay the amount due him. Is S’s promise within the scope of the Statute of Frauds?

Answer 23

The promise is not within the Statute of Frauds. Restatement 2d of Contracts § 114(c)

Question 24

S, at D’s request, orally promises C to guarantee the payment by D to C of the price of any goods sold by C to D, to the extent of the indebtedness S may owe D at the time when C notifies S that D has made default. C thereupon sells goods to D. Is S’s promise within the scope of the Statute of Frauds?

Answer 24

S’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 114(c)

Question 25

S and D severally promise C to pay for goods to be delivered to D. The goods are really for S and D is the real surety, but S and D lead C to suppose that S is the surety. Is S’s promise within the scope of the Statute of Frauds?

Answer 25

S’s promise is not within the Statute of Frauds. under § 113(c) neither is D’s. Restatement 2d of Contracts § 114(c)

Question 26

D owes C $1,000. C is about to levy an attachment on D’s factory. S, who is a friend of D’s desiring to prevent his friend’s financial ruin, orally promises C that if C will forbear to take legal proceedings against D for three months S will pay D’s debt if D fails to do so. S has no purpose to benefit himself and C has no reason to suppose so. Is S’s promise enforceable?

Answer 26

S’s promise is not enforceable. Restatement 2d of Contracts § 116(b)

Question 27

D owes C $1,000. C is about to levy an attachment on D’s factory. S, who is also a creditor of D’s, fearing that the attachment will ruin D’s business and thereby destroy his own chance of collecting his claim, orally promises C that if C will forbear to take legal proceedings against D for three months, S will pay D’s debt if D fails to do so. Is S’s promise enforceable?

Answer 27

S’s promise is enforceable. Restatement 2d of Contracts § 116(b)

Question 28

D contracts with S to build a house for S. C contracts with D to furnish materials for the purpose. D, in violation of his contract with C, fails to pay C for some of the materials furnished. C justifiably refuses to furnish further materials. S orally promises C, that if C will continue to furnish D with materials that C had previously agreed to furnish, S will pay the price not only for the materials already furnished but also for the remaining materials if D fails to do so. Is S’s promise enforceable?

Answer 28

S’s promise is enforceable. Restatement 2d of Contracts § 116(b)

Question 29

C, a bank, discounts negotiable promissory notes of D, a corporation. D becomes financially involved. An official bank examiner threatens to close the bank on account of the impairment of its assets because of the loans to D. S, a substantial shareholder of the bank, in consideration of forbearance by the examiner, orally promises the bank that if D fails to pay the note, he will do so. Is S’s promise enforceable?

Answer 29

The promise of S is enforceable. Restatement 2d of Contracts § 116(c)

Question 30

In consideration of a premium of $100, S guarantees C in an unsigned writing the fidelity of D, C’s employee, during D’s term of employment. Is S’s guaranty enforceable?

Answer 30

The guaranty is not enforceable. Restatement 2d of Contracts § 116(c)

Question 31

In consideration of a loan by C to D, S orally promises C to execute a written instrument guaranteeing the debt. Is S’s promise within the scope of the Statute of Frauds?

Answer 31

S’s promise is within the Statute. Restatement 2d of Contracts § 117(a)

Question 32

D owes C $1,000. In consideration of C’s forbearance to sue D, S orally promises C that S will sign as acceptor for the accommodation of D a draft for $1,000 to be drawn by D. Is S’s promise within the scope of the Statute of Frauds?

Answer 32

S’s promise is within the Statute. Restatement 2d of Contracts § 117(a)

Question 33

I promises to indemnify S if he will guarantee I’s obligation to C. Is I’s promise within the scope of the Statute of Frauds?

Answer 33

I’s promise is not within the Statute of Frauds. S’s promise is. Restatement 2d of Contracts § 118(a)

Question 34

I promises to indemnify S if he will sign an accommodation note to C for I’s benefit. Is I’s promise within the scope of the Statute of Frauds?

Answer 34

I’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 118(a)

Question 35

I promises D to assume his liability to S, and also promises S to indemnify him against loss sustained by S as surety for D’s obligation to C. Is I’s promise within the scope of the Statute of Frauds?

Answer 35

I is now the principal obligor and his promise is not within the Statute of Frauds. Restatement 2d of Contracts § 118(a)

Question 36

Relying on I’s promise to indemnify him, S obtains goods from C on S’s promise to pay for them if D does not. D comes under no duty to pay for them. Is I’s promise within the scope of the Statute of Frauds?

Answer 36

I’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 118(a)

Question 37

To induce C, a commercial surety company, to file a bond in an action against D company, S gives C a written guaranty against loss. After judgment against D company, I, a stockholder, orally promises S to indemnify him against loss. Is I’s promise within the scope of the Statute of Frauds?

Answer 37

Unless I’s promise is within the main purpose rule, it is within the Statute of Frauds. Restatement 2d of Contracts § 118(b)

Question 38

I requests S to indorse notes made by I’s son D, in order to enable D to obtain credit for use in D’s business, and orally promises to indemnify S for any resulting loss. S indorses the notes as requested. Is I’s promise within the scope of the Statute of Frauds?

Answer 38

Even though for some purposes I is treated as surety for D, I’s promise is not within the Statute of Frauds. Restatement 2d of Contracts § 118(b)

Question 39

S holds a note made by D payable to bearer, and sells and delivers it to C, orally guaranteeing that D will pay the note. Is S’s promise within the scope of the Statute of Frauds?

Answer 39

S’s promise is not within the Statute. Restatement 2d of Contracts § 121(a)

Question 40

S is engaged in selling goods for others on commission. To induce C to employ him, S orally guarantees payment by those to whom he sells C’s goods. Later S sells goods for C on credit to D. Is S’s promise within the scope of the Statute of Frauds?

Answer 40

S’s promise is not within the Statute. Restatement 2d of Contracts § 121(a)

Question 41

D owes C $1,000 on open account. S, who specializes in the purchase of slow accounts, orally promises to buy C’s right against D for $800 if assignment is made within three months. At the end of three months, C tenders S an assignment of the account. Is S’s promise within the scope of the Statute of Frauds?

Answer 41

S’s promise is not within the suretyship provision of the Statute of Frauds. Restatement 2d of Contracts § 122(a)

Question 42

D corporation owes C $1,000 which is due. S orally promises C that if C will grant D an extension of 60 days, S will purchase the debt at that time if it is not then paid. Is S’s promise enforceable?

Answer 42

The circumstances indicate that S is really guaranteeing the account, and the promise is unenforceable. Restatement 2d of Contracts § 122(b)

Question 43

D owes C $100. S orally promises D that S will discharge the debt, or promises to lend D money with which to pay it. Is S’s promise within the scope of the Statute of Frauds?

Answer 43

In either case, S’s promise is not within the Statute of Frauds. 123(a)

Question 44

In consideration of A’s promise to marry B, B orally promises to marry A and to settle Blackacre upon A. Is B’s promise within the scope of the Statute of Frauds?

Answer 44

B’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 124(b)

Question 45

B offers to marry A. To induce A to accept the offer, B orally promises to settle property upon A. A accepts the offer. Are B’s promises within the scope of the Statute of Frauds?

Answer 45

Both promises to marry and B’s promise to make a settlement are within the Statute of Frauds. Restatement 2d of Contracts § 124(b)

Question 46

In consideration of A’s promise to marry B, B orally promises to marry A and to forego the rights which the law allows B with reference to A’s property. Is B’s promise within the scope of the Statute of Frauds?

Answer 46

B’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 124(b)

Question 47

A and B mutually promise that each will settle $5,000 on A’s daughter when she marries B’s son. Are the promises within the scope of the Statute of Frauds?

Answer 47

The promises are not within the Statute of Frauds, since the marriage is a condition rather than consideration. Restatement 2d of Contracts § 124(c)

Question 48

A and B are engaged to marry. In consideration of A’s promise that when married they will live in a house owned by A, B promises to settle $10,000 upon her. Are the promises within the scope of the Statute of Frauds?

Answer 48

The promises are not within the marriage provision of the Statute of Frauds. Restatement 2d of Contracts § 124(c)

Question 49

A leases land to B under a written lease terminable at the end of any year by written notice given by either party. During the third year of the lease, in consideration of a loan by B, A orally promises not to terminate the lease before the end of the fourth year. Is the oral agreement within the scope of the Statute of Frauds?

Answer 49

The oral agreement is not a lease or contract to lease but is a contract not to be performed within a year, and is within the one-year provision of a Statute of Frauds enacted in the original English form. Restatement 2d of Contracts § 125(b)

Question 50

A promises B to transfer Blackacre to B or to C for a price to be paid by B. Is A’s promise within the scope of the Statute of Frauds?

Answer 50

A’s promise is within the Statute of Frauds, whether or not B is committed to buy. Restatement 2d of Contracts § 125(c)

Question 51

A owes B $1,000. In consideration of B’s promise to extend the time of payment three months, A promises orally that he will sell his land and apply the proceeds as far as necessary to pay the debt. Is A’s promise within the scope of the Statute of Frauds?

Answer 51

A’s promise to sell the land is within the Statute of Frauds. Restatement 2d of Contracts § 125(c)

Question 52

A and B orally promise C a share in a partnership of which A and B are partners. C orally promises to contribute his services to the firm business. A and B own land as part of the partnership assets. Are these promises within the scope of the Statute of Frauds?

Answer 52

The promises are within the Statute. Restatement 2d of Contracts § 125(c)

Question 53

For consideration, A promises B to devise Blackacre to B. Is A’s promise within the scope of the Statute of Frauds?

Answer 53

A’s promise is within the Statute. Restatement 2d of Contracts § 125(c)

Question 54

A promises B, his daughter, that he will die intestate so that B will inherit a share in a parcel of land. Is A’s promise within the scope of the Statute of Frauds?

Answer 54

A’s promise is not within the land contract provision of the Statute of Frauds. The contemplated transfer to B is a transfer by operation of law, not a transfer by virtue of the contract. Restatement 2d of Contracts § 125(c)

Question 55

A orally promises B to share with him whatever proceeds A obtains from the sale of Blackacre. Is A’s promise within the scope of the Statute of Frauds?

Answer 55

A’s promise is not within the land contract provision of the Statute of Frauds. Restatement 2d of Contracts § 125(c)

Question 56

A promises to pay $5,000 to B for a conveyance of Blackacre either to A or to a third person. Is A’s promise within the scope of the Statute of Frauds?

Answer 56

A’s promise is within the Statue of Frauds. Restatement 2d of Contracts § 125(d)

Question 57

A promises to support B during B’s life in consideration of B’s promise to convey Blackacre to A. Is A’s promise within the scope of the Statute of Frauds?

Answer 57

A’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 125(d)

Question 58

A and B make an oral contract for the sale of Blackacre by B for $10,000, and A gives B a check for $1,000 as a down payment. B is ready and willing to perform, but A stops payment of the check. Is A’s performance enforceable under the Statute of Frauds?

Answer 58

The Statute of Frauds does not prevent enforcement of A’s obligation on the check. See § 78. Restatement 2d of Contracts § 125(d)

Question 59

A promises B to transfer Blackacre to B, in consideration of B’s promise to pay A $5,000. A tenders a deed of Blackacre to B and B accepts the deed. Is B’s promise within the scope of the Statute of Frauds?

Answer 59

B’s promise is no longer within the land contract provision of the Statute of Frauds. Restatement 2d of Contracts § 125(e)

Question 60

A owes B $10,000. A promises to convey Blackacre to B in full settlement of the debt, and B promises to accept the conveyance in full settlement. A tenders to B a deed to Blackacre and B accepts the deed. Is B’s promise enforceable under the Statute of Frauds?

Answer 60

The Statute of Frauds does not prevent enforcement of B’s promise. Restatement 2d of Contracts § 125(e)

Question 61

A owes B $1,000. In consideration of B’s promise to extend the time of payment three months, A promises orally that he will sell a parcel of land and apply the proceeds as far as necessary to pay the debt. A sells the parcel. Is A’s promise within the scope of the Statute of Frauds?

Answer 61

A’s promise is no longer within the land contract provision of the Statute of Frauds. Restatement 2d of Contracts § 125(e)

Question 62

A promises B that C, A’s wife, will transfer her land to B’s son D on payment by D of $5,000. In consideration of A’s promise, B promises to pay A a commission of $100. Is A’s promise within the scope of the Statute of Frauds?

Answer 62

A’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 126(a)

Question 63

A orally promises B that A will buy Blackacre from C. Is A’s promise within the scope of the Statute of Frauds?

Answer 63

The promise is within the Statute of Frauds, but ceases to be within it if A accepts a conveyance from C. See § 125. Restatement 2d of Contracts § 126(a)

Question 64

A orally promises B to buy a parcel of land from C and to hold it in trust for B, subject to the payment of the price by B. B orally promises A a commission for so doing. Is A’s promise within the scope of the Statute of Frauds?

Answer 64

A’s promise to buy the parcel is within the Statute of Frauds. If A purchases the parcel, however, he holds it upon a constructive trust for B. See Restatement of Restitution § 194. Restatement 2d of Contracts § 126(a)

Question 65

A orally promises B to pay him $500 if he succeeds in inducing C to agree to transfer Blackacre to A for $5,000. Is A’s promise within the scope of the Statute of Frauds?

Answer 65

A’s promise is not within the Statute of Frauds as a contract for the sale of an interest in land. In many states, however, a separate statute makes such a promise unenforceable in the absence of a writing. Restatement 2d of Contracts § 126(b)

Question 66

A orally promises B to pay B a commission of $100 if B induces C to transfer Blackacre to B’s son D, and B orally promises A to use his best efforts to that end. Are these promises within the scope of the Statute of Frauds?

Answer 66

Neither promise is within the Statute of Frauds as a contract for the sale of an interest in land. Restatement 2d of Contracts § 126(b)

Question 67

A orally promises B that A will convey Blackacre to any purchaser procured by B, at a price stated “net” of B’s 5 per cent commission. B procures an offer by C to buy on A’s terms and to pay B’s commission, but A refuses to convey. Is A’s promise within the scope of the Statute of Frauds?

Answer 67

A’s promise to B is within the Statute of Frauds. Restatement 2d of Contracts § 126(b)

Question 68

A, a mortgagor of Blackacre, promises B, the mortgagee, to release A’s right to redeem the mortgaged property, in consideration of B’s promise to accept the release in full satisfaction of the mortgage debt. Are these promises within the scope of the Statute of Frauds?

Answer 68

The promises of A and B are within the Statute of Frauds. Restatement 2d of Contracts § 127(a)

Question 69

A, holding a note made by B and secured by mortgage on B’s land, promises to assign the note to C. Is A’s promise within the scope of the Statute of Frauds?

Answer 69

A’s promise to C is not within the land contract provision of the Statute. Though the assignment will give C an interest in land, the interest is transferred by operation of law rather than by agreement. See § 340. Restatement 2d of Contracts § 127(a)

Question 70

By written agreement A promises to sell and B promises to buy Blackacre. B promises to assign to C B’s right to a conveyance. Is B’s promise to C within the scope of the Statute of Frauds?

Answer 70

B’s promise to C is within the Statute of Frauds. Restatement 2d of Contracts § 127(a)

Question 71

A orally promises B to allow B during B’s life to maintain a drain, or to carry away gravel, or to erect and maintain a dam on a parcel of land. In consideration thereof B orally promises to pay A $1,000. Are these promises within the scope of the Statute of Frauds?

Answer 71

Both promises are within the Statute of Frauds. Restatement 2d of Contracts § 127(b)

Question 72

A, a boarding-house keeper, orally promises B to give B board and lodging in A’s house for the ensuing year, in consideration of B’s promise to pay A $20 a week. Are these promises within the scope of the Statute of Frauds?

Answer 72

Neither promise is within the Statute of Frauds. Restatement 2d of Contracts § 127(b)

Question 73

A orally promises B to allow B to paste advertisements on A’s wall during the ensuing month, in consideration of B’s promise to pay A $100. Are these promises within the scope of the Statute of Frauds?

Answer 73

Neither promise is within the Statute of Frauds. Restatement 2d of Contracts § 127(b)

Question 74

A transfers Blackacre to B by deed and orally promises that he will insert restrictions in the deeds to subsequent grantees of adjoining land belonging to A, prohibiting the erection of buildings within a certain distance from the street. Is A’s promise within the scope of the Statute of Frauds?

Answer 74

A’s promise is within the Statute of Frauds. Restatement 2d of Contracts § 127(b)

Question 75

A and B agree by an unsigned writing that A will sell Blackacre to B for $5,000. B pays the price to A as agreed, and A accepts the payment but refuses to transfer the land as agreed. What recourse does B have?

Answer 75

B is not entitled to specific performance, but can recover the amount of the payment. Restatement 2d of Contracts § 129(b)

Question 76

A orally leases A’s farm to B for five years, agreeing that B will repair the premises at prevailing wages to be credited on the rent. B takes possession of the farm and does $1,000 worth of repair work, using material furnished by A. A then seeks to evict B. What recourse does B have?

Answer 76

B is entitled to $1,000 less the fair rental of the farm for the period of his occupancy, but is not entitled to specific performance or damages. Restatement 2d of Contracts § 129(b)

Question 77

A orally promises to make a gift of Blackacre to his son B and puts B in possession. With A’s consent B builds a dwelling house on the land and lives in it for twenty years until A dies, paying all taxes on the land. What recourse does B have?

Answer 77

B may obtain a decree of specific performance against A’s heir or personal representative. Restatement 2d of Contracts § 129(b)

Question 78

A owns an unsightly vacant lot adjoining B’s home in a residential suburb. A’s agent and B orally agree that A will sell the lot to B for $1,500. B, a lawyer aware of the doctrine of part performance, expends $1,000 in grading and planting on the lot, but makes no payments and does not communicate with A for two years. A observes the grading and planting, but later denies concluding a contract or knowing that B claimed under a contract. What recourse does B have?

Answer 78

B is not entitled to specific performance, since his actions are not unequivocally referable to a contract for sale and recovery of the value of the improvements is an adequate remedy. Restatement 2d of Contracts § 129(d)

Question 79

A leases a residence to B for $9 per month. After four months A and B agree to a written contract for sale of the premises for $1,000 in monthly installments of $12.89, but the contract is not signed. B pays $12.89 each month for thirteen months and pays for taxes and insurance. Then the land increases in value because an air base is located nearby, and A repudiates the contract. What recourse does B have?

Answer 79

B is entitled to specific performance. Restatement 2d of Contracts § 129(d)

Question 80

A orally agrees to lease shop space in a new hotel to B for five years and to give B an option to renew the lease for another five years. At A’s request B moves in before formal execution of a lease, deposits $5,000 with A, and expends $50,000 on fixtures and improvements. Later A and B agree on pencil corrections to a written lease and return it to A’s attorney for redrafting, but no redrafted lease is submitted or executed. B occupies the premises and pays rent for five years, and notifies A of B’s election to renew, but A denies the existence of an option to renew. What recourse does B have?

Answer 80

B is entitled to specific performance. Restatement 2d of Contracts § 129(d)

Question 81

A leaves 1,000 acres of land to his cousin B by will. A’s heirs contest the will, and B retains his uncle C, an attorney, agreeing orally that C is to receive as his fee, contingent upon success, a specific 180 acres of the land. C successfully defends the will, but B refuses to convey the land as agreed. In C’s suit for specific performance, B admits the making of the contract, but defends under the Statute of Frauds. What recourse does C have?

Answer 81

Specific performance may be granted. Restatement 2d of Contracts § 129(d)

Question 82

A promises to give C, an adjoining landowner, first refusal in the event that A sells a tract of land. Later B and C agree orally that C will consent to a sale by A to B and that B will then convey to C a fifteen-foot strip adjoining C’s land, C paying a proportionate part of the price. C notifies A that C consents, and A conveys the tract to B, but B repudiates his promise to convey the strip to C. What recourse does C have?

Answer 82

C is entitled to a decree of specific performance against B. Restatement 2d of Contracts § 129(d)

Question 83

A, aged 55, orally promises B, his adopted daughter, that if B will quit school, live with A and his sick wife and refrain from marrying until B is 25, help A run his farm, and take care of the wife until the wife dies, A will leave B all his property by will. B performs as requested until the wife dies 12 years later, except for an eight-month trip with A’s consent. After the wife’s death, B at age 28 marries a man of whom A disapproves. A thereafter refuses to have anything to do with B, revokes a will carrying out his promise, and makes a new will leaving his property to others. Four years after the marriage A dies. What recourse does B have?

Answer 83

B is entitled to specific performance. Restatement 2d of Contracts § 129(d)

Question 84

A and B orally agree that A will sell a house and lot to B for $10,000. A signs a memorandum of the contract but B does not. B pays $1,000 on account of the price. A prepares a conveyance and delivers it in escrow to await payment, delivers possession of the land to B, and sells him the furniture in the house. B lives in the house for six months and plants a substantial garden, but refuses to pay the balance of the price because of defects in A’s title, and finally repudiates the contract shortly after the defects are cured. What recourse does B have? How about A?

Answer 84

Whether or not B would have been entitled to specific performance, A is not. Restatement 2d of Contracts § 129(e)

Question 85

A orally leases a storeroom to B for six years at a rental of $400 per month. In accordance with the agreement A builds a balcony at a cost of $1500 which does not add to the value of the premises. B takes possession and pays rent for three years, and then repudiates the lease at a time when tenants have become scarce. What recourse does A have?

Answer 85

A is entitled to specific performance. Restatement 2d of Contracts § 129(e)

Question 86

A, an insurance company, orally promises to insure B’s house against fire for five years, B promising to pay the premium therefor within the week. Is the contract within the Statute of Frauds?

Answer 86

The contract is not within the Statute of Frauds, since if the house burns and the insurer pays within a year the contract will be fully performed. Restatement 2d of Contracts § 130(a)

Question 87

A orally promises to work for B, and B promises to employ A during A’s life at a stated salary. Are the promises within the Statute of Frauds?

Answer 87

The promises are not within the one-year provision of the Statute, since A’s life may terminate within a year. Restatement 2d of Contracts § 130(a)

Question 88

A and B, a railway, agree that A will provide grading and ties and B will construct a switch and maintain it as long as A needs it for shipping purposes. A plans to use it for shipping lumber from adjoining land which contains enough lumber to run a mill for 30 years, and uses the switch for 15 years. Is the contract within the Statute of Frauds?

Answer 88

The contract is not within the one-year provision of the Statute. Restatement 2d of Contracts § 130(a)

Question 89

A orally promises B to sell him five crops of potatoes to be grown on a specified farm in Minnesota, and B promises to pay a stated price on delivery. Is the contract within the Statute of Frauds?

Answer 89

The contract is within the Statute of Frauds. It is impossible in Minnesota for five crops of potatoes to mature in one year. Restatement 2d of Contracts § 130(a)

Question 90

A orally promises to work for B, and B promises to employ A for five years at a stated salary. Is the contract within the Statute of Frauds?

Answer 90

The promises are within the Statute of Frauds. Though the duties of both parties will be discharged if A dies within a year, the duties cannot be “performed” within a year. This conclusion is not affected by a term in the oral agreement that the employment shall terminate on A’s death. Restatement 2d of Contracts § 130(b)

Question 91

The facts being otherwise as stated in Illustration 5, the agreement provides that either party may terminate the contract by giving 30 days notice at any time. Is the agreement within the Statute of Frauds?

Answer 91

The agreement is one of uncertain duration and is not within the one-year provision of the Statute. Restatement 2d of Contracts § 130(b)

Question 92

The facts being otherwise as stated in Illustration 5, the agreement provides that A may quit at any time. Is the agreement within the Statute of Frauds?

Answer 92

The agreement is within the Statute. Restatement 2d of Contracts § 130(b)

Question 93

A, the maternal grandmother of a new-born illegitimate child, agrees with B, the father, that A will care for the child and B will make support payments until the child becomes 21 years old. Is the agreement within the Statute of Frauds?

Answer 93

The agreement is not within the one-year provision of the Statute. If the child dies within a year, the primary object of furnishing necessaries to the child will be fully “performed.” Rst. 130(b)

Question 94

A sells his grocery business to B, who pays part of the price and promises to pay the balance in a month, A agreeing orally not to engage in the grocery business in the same town for five years. Is the contract within the Statute of Frauds?

Answer 94

The contract is not within the one-year provision of the Statute, since A’s death within one year will give B the equivalent of full performance. Restatement 2d of Contracts § 130(b)

Question 95

Without consideration A promises B that, so long as B buys through A B’s requirements for gasoline and A accepts B’s orders, A will pay B an amount equal to the discount other distributors would allow B. For several years A accepts orders from B. Is A’s promise within the Statute of Frauds?

Answer 95

A’s promise is not within the one-year provision, since a separate contract is made each time A accepts an order. Restatement 2d of Contracts § 130(c)

Question 96

On December 1, 1966, A and B contract orally for A’s employment by B at a stated salary for a year beginning the following day. Is the contract within the Statute of Frauds?

Answer 96

The contract is not within the one-year provision, since the promised performance will be fully rendered before midnight of December 1, 1967. Restatement 2d of Contracts § 130(c)

Question 97

On December 1, 1966, A and B enter into an oral contract for the employment of A at a stated salary for the calendar year 1967. On the first working day in 1967, A presents himself for work, says “I understand these are the terms on which I am to be employed,” and restates the terms. B replies, “That is right.” Is the contract within the Statute of Frauds?

Answer 97

Though the original contract was within the Statute of Frauds, the subsequent restatement makes a new contract performable within a year. Restatement 2d of Contracts § 130(c)

Question 98

A sells and delivers goods to B in return for B’s promise to pay $1,000 in six months, $1,000 in a year and $1,000 in eighteen months. Are B’s promises within the Statute of Frauds?

Answer 98

B’s promises are not within the one-year provision of the Statute. Restatement 2d of Contracts § 130(d)

Question 99

A promises to pay B $5,000 in two years in return for B’s promise to render a stated performance for five years. A pays the $5,000 as agreed. B then refuses further performance. Is the promise withdrawn from the operation of Statute of Frauds?

Answer 99

The contract is withdrawn from the operation of the Statute. Restatement 2d of Contracts § 130(d)

Question 100

A and B contract orally for A’s employment by B at a stated salary for the ensuing two years. A works under the contract for 15 months when B discharges him without cause. Is the promise withdrawn from the operation of Statute of Frauds?

Answer 100

The contract is not withdrawn from the operation of the Statute, and A may not recover damages for wrongful discharge. But A may recover any unpaid salary. Restatement 2d of Contracts § 130(e)

Question 101

A and B agree on the sale of the output of A’s creamery to B for five years at stated prices. After four years B refuses further deliveries. Is the promise withdrawn from the operation of Statute of Frauds?

Answer 101

The contract is not withdrawn from the operation of the Statute, but A may recover the contract price of goods delivered and accepted. Restatement 2d of Contracts § 130(e)

Question 102

A makes an oral contract with B to devise Blackacre to B, and executes a will containing the devise and a recital of the contract. The will is revoked by a later will. Is the revoked will a sufficient memorandum to charge A’s estate?

Answer 102

The revoked will is a sufficient memorandum to charge A’s estate. Restatement 2d of Contracts § 131(d)

Question 103

A publishes in a newspaper an offer to buy certain goods, stating the terms of his proposal, and his name is printed under the advertisement. B accepts the offer. Is the advertisement a sufficient memorandum to charge A?

Answer 103

The advertisement is a sufficient memorandum to charge A. See § 136. Restatement 2d of Contracts § 131(d)

Question 104

A writes and signs in pencil a receipt for $1,000 which recites that the money is received from B as part payment of the price of $5,000 for a parcel of land. Is the receipt a sufficient memorandum to charge A?

Answer 104

The receipt is a sufficient memorandum to charge A on the agreement recited. Restatement 2d of Contracts § 131(d)

Question 105

A Company executes a written contract with B by which B purchases certain accounts owned by A Company. As part of the same transaction, C, the president of A Company, signs a contract of guaranty printed at the foot of the same paper: “In order to induce B to enter into an agreement dated ______ with ______ (hereinafter referred to as the client), the undersigned agrees to be liable for due performance of all the client’s agreements with B.” The blanks are not filled in. Are the quoted words sufficient to identify the obligation guaranteed?

Answer 105

The quoted words are sufficient to identify the obligation guaranteed. Restatement 2d of Contracts § 131(e)

Question 106

A and B make an oral contract for the sale of goods and sign the following memorandum: “Sept. 19th B, 12 mos. (300 bales S.F. drills (71/4) and 100 cases blue do (83/4)). Credit to commence when ship sails. not after December 1––delivered free of charge for truckage. [Signed] A, B.” Is the memorandum a sufficient?

Answer 106

If persons acquainted with the usages of the business would understand its meaning, the memorandum is sufficient. Restatement 2d of Contracts § 131(e)

Question 107

A and B enter into an oral contract by which A promises to sell and B to buy such of A’s iron in his millyard as he may decide to sell. A memorandum describes the subject matter of the contract as “all A’s iron which he may decide to sell.” Is the description a sufficient?

Answer 107

The description is sufficient. Restatement 2d of Contracts § 131(e)

Question 108

A and B enter into a contract by which A promises to sell and B to buy a certain lot of hops belonging to A. A telegram from B refers to the subject matter as “number 13.” This refers to a sample submitted by A to B by mail with a numbered tag attached and referring by trade usage to a specific lot. Is the description a sufficient?

Answer 108

The description is sufficient. Restatement 2d of Contracts § 131(e)

Question 109

A and B enter into an oral contract for the sale and purchase of Blackacre. An otherwise sufficient memorandum, signed by A and B, describes the subject matter as “the land on the corner of X and Y Streets,” omitting any statement as to the city or state. A owns only one of the four lots at the intersection. Is the description a sufficient?

Answer 109

The description is sufficient. Restatement 2d of Contracts § 131(e)

Question 110

A and B enter into a written contract for the employment of B as A’s sales manager for a term of two years. At the end of the two years, A and B orally agree to extend the employment for three more years at an increased salary. A year later A signs the following memorandum: “It is understood that the arrangements made for employment of B in our business on January 1, 1977, for a period of three years from that date at a salary of $30,000 per year, continues in force until January 1, 1980.” Does the memorandum sufficiently identify the nature of B’s employment?

Answer 110

The memorandum sufficiently identifies the nature of B’s employment. Restatement 2d of Contracts § 131(e)

Question 111

A and B are negotiating for the sale of A’s restaurant to B. B gives A a check for $500 bearing the notation “Tentative deposit on tentative purchase of 1415 City Line Ave., Phila. Restaurant, Fixtures, Equipment, Good Will.” Later A and B orally agree on terms of sale. Is the quoted memorandum sufficient to indicate that a contract for sale has been made?

Answer 111

The quoted memorandum is not sufficient to indicate that a contract for sale has been made. Restatement 2d of Contracts § 131(f)

Question 112

C and D make an oral contract for the sale of Blackacre and sign the following memorandum: “C agrees to sell and D agrees to buy Blackacre for $10,000.” C is agent for A, D is agent for B, and each is acting on behalf of his principal. Is the memorandum sufficient to charge A and B?

Answer 112

The memorandum is sufficient to charge A and B. Restatement 2d of Contracts § 131(f)

Question 113

An otherwise sufficient memorandum of an oral contract for the sale of Blackacre states that “the owner of Blackacre” promises to sell it. The memorandum is signed by B, and B is the agent of A, the owner of Blackacre, acting on A’s behalf. Is the memorandum sufficient to charge A?

Answer 113

The memorandum is sufficient to charge A. Restatement 2d of Contracts § 131(f)

Question 114

A, president and principal stockholder of A Company, gives B his personal check for $10,000 and a written offer to buy Blackacre from B on stated terms. The offer, signed by A, states that “the offer to purchase is from a company owned by A.” B accepts the offer by a signed writing. Neither the offer nor the acceptance identifies the purchaser except by the quoted language. Is the identification sufficient?

Answer 114

The identification is sufficient. Restatement 2d of Contracts § 131(f)

Question 115

A and B make an oral agreement for the sale of a parcel of land by A to B. B pays A $50 and A signs and delivers to B a receipt which identifies the parcel and accurately states the terms of payment but does not name or describe B or his agent. In B’s suit for specific performance, A defends on the ground of B’s inequitable conduct in the negotiations. Is the B’s identification sufficient?

Answer 115

B is sufficiently identified by his possession of the memorandum. Restatement 2d of Contracts § 131(f)

Question 116

A and B enter into an oral contract for the sale of Blackacre by A to B. A memorandum is made and signed which states sufficiently the parties, subject matter and terms of the oral bargain except that, though the parties in fact orally agreed that the price should be payable on delivery of a deed, the memorandum contains no statement as to when the price is payable. Is the memorandum sufficient?

Answer 116

The memorandum is sufficient. Restatement 2d of Contracts § 131(g)

Question 117

A and B enter into an oral contract for the sale of Blackacre by A to B, and both sign a memorandum providing for a “purchase money mortgage in the amount of $18,000 payable for 15 years at 5%.‘ B claims a right to pay $142.35 per month. A claims a payment of $100 a month plus monthly interest at 5%. No usage is shown. Is the memorandum sufficient?

Answer 117

The memorandum is not sufficient to support an action by B for specific performance on his terms. Restatement 2d of Contracts § 131(g)

Question 118

A lends $1,000 to B, and as part of the transaction C orally agrees to guarantee repayment. To evidence the guaranty, C signs a written promise to pay A $1,000. Is the promise a sufficient memorandum?

Answer 118

The written promise is a sufficient memorandum without any statement of consideration. Restatement 2d of Contracts § 131(h)

Question 119

A agrees not to sue B Company on a debt for goods sold and delivered, in consideration of C’s guaranty of payment for past and future deliveries to B up to $3,000. C signs the following guaranty: “I, C, do hereby guarantee to A the payment of any sums due or that may become due up to the sum of $3,000 on such goods as B may have bought or shall buy from A. [Signed] C.” A makes no further deliveries. Is the memorandum sufficient?

Answer 119

The memorandum is not sufficient to charge C, since it omits any mention of A’s return promise. Restatement 2d of Contracts § 131(h)

Question 120

A and B orally agree on the sale of a farm by A to B for $155 an acre. A dates and signs the following memorandum: “Received from B $100 as payment on 84 acres farm, [at $155 an acre] balance to be paid when deed and abstract are presented.” Is the memorandum sufficient?

Answer 120

The memorandum is sufficient to charge A if the bracketed words are included but not if they are omitted. Restatement 2d of Contracts § 131(h)

Question 121

A signs and sends to B a letter stating that he is interested in leasing a parcel of land from B. After six months of negotiations A and B orally agree on an eight-year lease of the parcel with an option to purchase, and both sign a memorandum which is sufficient except that it does not identify the land. Is there a sufficient memorandum?

Answer 121

The two documents together constitute a sufficient memorandum to charge A. Restatement 2d of Contracts § 132(b)

Question 122

A and B make an oral contract within the Statute. A writes and signs a letter to B which is a sufficient memorandum except that it does not identify B. How may the deficiency be supplied, nonetheless?

Answer 122

The deficiency may be supplied by the name and address on the envelope in which the letter arrives. Restatement 2d of Contracts § 132(c)

Question 123

A and B make an oral contract within the Statute. A memorandum of the contract is made on two sheets of paper which are not connected physically, and A signs one of the sheets. How may the two sheets still constitute a sufficient memorandum?

Answer 123

The two sheets may be read together as a memorandum to charge A if an incomplete sentence on one is completed on the other, if the contract partially disclosed by one is clearly the same contract partially disclosed by the other, or if the fact that one is a continuation of the other is otherwise shown by clear and convincing evidence. Restatement 2d of Contracts § 132(c)

Question 124

A and B enter into an oral contract within the Statute. A memorandum of the contract is made on two sheets of paper. The contents of the sheets do not show that they belong together, but A signs one and then fastens the sheets together with a clip. Is the memorandum sufficient?

Answer 124

Even though the clip is later removed, the fastening is a sufficient adoption of A’s signature with reference to both sheets to charge A, but only if the evidence of the fastening is clear and convincing. Restatement 2d of Contracts § 132(c)

Question 125

A agrees orally to employ B for two years. An unsigned memorandum of the contract, stating its terms, is prepared at A’s direction. Later B begins work and payroll cards are made and initialed by A which state some of the terms but not the duration of the employment. Is the memorandum sufficient?

Answer 125

If it is clear that the unsigned memorandum and the payroll cards refer to the same agreement, they may be read together as a sufficient memorandum to charge A. Restatement 2d of Contracts § 132(c)

Question 126

A and B enter into a contract within the Statute and sign a memorandum, otherwise sufficient, stating that the price to be paid shall be the same as the price agreed upon by C and D in a similar contract expected to be made on the following day. Is the memorandum sufficient?

Answer 126

The memorandum is sufficient if it accurately states the entire agreement between A and B. The contract made between C and D is an event of independent significance, and may be referred to for the price whether or not there is a memorandum signed by C or D. Restatement 2d of Contracts § 132(d)

Question 127

A and B enter into an oral contract for the purchase and sale of a tract of land and sign a memorandum, otherwise sufficient, stating that the contract is “contingent upon A’s ability to arrange $7,000 purchase money mortgage.” A subsequently applies in writing to a financial institution for such a mortgage loan on specific terms as to duration, interest rate and payment. Does this mortgage loan satisfy the Statute of Frauds?

Answer 127

The mortgage loan application may be read with the memorandum to satisfy the Statute against either party. Restatement 2d of Contracts § 132(d)

Question 128

A and B enter into an oral contract for the sale of Blackacre. A writes and signs a letter to his friend C containing an accurate statement of the contract. Is the letter a sufficient memorandum?

Answer 128

The letter is a sufficient memorandum to charge A even though it is never mailed. Restatement 2d of Contracts § 133(b)

Question 129

A writes to B the following letter: “Dear B: I will employ you as superintendent of my mill for a term of three years from date, at a salary of $28,000 a year. Let me know if you wish to accept this offer. [Signed] A.” B accepts the offer orally. Is the letter a sufficient memorandum?

Answer 129

The letter is a sufficient memorandum to charge A. Restatement 2d of Contracts § 133(b)

Question 130

A writes and signs a letter to his agent C authorizing C to make the following offer to B: “I will employ you as superintendent of my mill for a term of three years from date, at a salary of $28,000 a year. Let me know if you wish to accept this offer.” C orally makes the offer, and B orally accepts it. Is A’s letter a sufficient memorandum?

Answer 130

A’s letter is not a sufficient memorandum to charge him. Restatement 2d of Contracts § 133(b)

Question 131

A and B enter into an oral contract by which A promises to sell and B promises to buy Blackacre for $5,000. A writes and signs a letter to B in which he states accurately the terms of the bargain, but adds “our agreement was oral. It, therefore, is not binding upon me, and I shall not carry it out.” Is the letter a sufficient memorandum?

Answer 131

The letter is a sufficient memorandum to charge A. Rst. 133(c)

Question 132

A and B make an oral contract within the Statute. A sends to B a written acceptance, stating the terms, on a form bearing A’s name as a printed heading. At the foot of the form is the word “Accepted” followed by a blank space for signature, which is not filled in. Is there a signature?

Answer 132

In the absence of other evidence of intention, the form is not signed by A. Restatement 2d of Contracts § 134(b)

Question 133

A and B make an oral contract within the Statute. A writes a memorandum stating the terms which begins, “I, A, make the following contract with B.” A then delivers the memorandum to B. Is there a signature?

Answer 133

This is A’s signature if the trier of fact infers A’s intent to authenticate the writing. Restatement 2d of Contracts § 134(b)

Question 134

A and B make an oral contract within the Statute. A clerk makes a written statement of the contract, and A writes at the top thereof—“O.K.” followed by A’s initials. Is there a signature?

Answer 134

This is a signature by A. Restatement 2d of Contracts § 134(b)

Question 135

A has a number of forms of letters printed ending with the words, “Yours very truly, A.” With A’s authority a clerk fills in one of the forms with the terms of an offer to B and sends it to B. B accepts orally. Is there a signature?

Answer 135

A’s printed name is his signature. Restatement 2d of Contracts § 134(c)

Question 136

A is lessee of a building for five years at $75 per month and has sublet it for three years at $100 per month. A seeks to induce B to purchase the building, and to that end orally promises to assign to B the lease and sublease and to execute a written assignment as soon as B obtains a deed. B purchases the building in reliance on the promise. What is B entitled to?

Answer 136

B is entitled to the rentals from the sublease. Restatement 2d of Contracts § 139(b)

Question 137

A is a pilot with an established airline having rights to continued employment, and could take up to six months leave without prejudice to those rights. He takes such leave to become general manager of B, a small airline which hopes to expand if a certificate to operate over an important route is granted. When his six months leave is about to expire, A demands definite employment because of that fact, and B orally agrees to employ A for two years and on the granting of the certificate to give A an increase in salary and a written contract. In reliance on this agreement A lets his right to return to his prior employer expire. The certificate is soon granted, but A is discharged in breach of the agreement. What is B entitled to?

Answer 137

The Statute of Frauds does not prevent recovery of damages by A. Restatement 2d of Contracts § 139(b)

Question 138

A orally promises to pay B a commission for services in negotiating the sale of a business opportunity, and B finds a purchaser to whom A sells the business opportunity. A statute extends the Statute of Frauds to such promises, and is interpreted to preclude recovery of the reasonable value of such services. Is the promise enforceable?

Answer 138

The promise is not made enforceable by B’s reliance on it. Restatement 2d of Contracts § 139(c)

Question 139

A renders services to B under an oral contract within the Statute by which B promises to pay for the services. What is A entitled to?

Answer 139

On discharge without cause in breach of the contract, A is entitled to the reasonable value of the services, but in the absence of additional circumstances is not entitled to damages for wrongful discharge. Restatement 2d of Contracts § 139(d)

Question 140

A owes B $1,000. In consideration of B’s oral agreement to discharge the debt, A promises to transfer Blackacre to B. A tenders B a deed of Blackacre. B refuses the tender and sues for $1,000. What is B entitled to?

Answer 140

Whether or not A has signed a memorandum sufficient to charge him, B can recover. Restatement 2d of Contracts § 140(a)

Question 141

A promises to sell Blackacre to B, and B promises to pay $5,000 for it. B signs a memorandum sufficient to charge him, but A does not and the contract is not enforceable against A. A sues B for damages for breach of the contract. What recourse does B have?

Answer 141

B may defend on the ground that A repudiated the contract before tendering a deed, or may recoup damages resulting from a defect in A’s title. Restatement 2d of Contracts § 140(b)

Question 142

A contracts to transfer land to B for $10,000, and B pays $1,000. B does not sign a memorandum, and sues to recover the $1000 payment on the ground that the contract is unenforceable under the Statute of Frauds. A is willing and able to perform. What recourse does B have?

Answer 142

B cannot recover. See § 375. Restatement 2d of Contracts § 141(a)

Question 143

A and B enter into an oral contract for the performance of services by A extending over a period of two years, B promising to pay $5,000 on completion of the services. After six months work A demands that B sign a written memorandum of the contract. B refuses, and A quits work and sues for the value of the work done. What recourse does A have?

Answer 143

A can recover without deduction for damages caused by A’s quitting. Restatement 2d of Contracts § 141(b)

Question 144

A enters into an oral contract with B by which A promises to transfer Blackacre to B and B promises to pay $5,000, B to have an immediate license to go upon land. B does so. A sues for trespass. B tenders $5,000 and demands a transfer. What recourse does B have?

Answer 144

A need not accept the money or make a transfer, but B has a good defense to A’s action for trespass. Restatement 2d of Contracts § 143(a)

Question 145

A renders services to B under an oral contract within the Statute by which B promises to pay for the services. On B’s refusal to pay, A sues for the value of the services. Is the contract admissible?

Answer 145

The oral contract is admissible as evidence that the services were not rendered officiously or as a gift, and as evidence of the value of the services. Restatement 2d of Contracts § 143(a)

Question 146

A sues B on a debt and garnishes C, who had borrowed money from B. In defense C offers to prove an oral contract with B whereby B agreed to discharge C in return for C’s oral promise to transfer Blackacre to D at a future day. Is the contract enforceable or admissible?

Answer 146

Since the oral contract, though unenforceable, would establish a good defense to the garnishment under § 144, it is admissible in evidence against A. Restatement 2d of Contracts § 143(a)

Question 147

A owns goods in B’s possession and sells the goods to C on credit. The Statute is not satisfied. At C’s request B ships the goods to C before any repudiation by A. The goods are lost in transit, C repudiates the sale, and A sues B for conversion. Is the contract admissible?

Answer 147

The contract is admissible in evidence to prove that C rather than A was the owner of the goods. See § 142. Restatement 2d of Contracts § 143(a)

Question 148

A and B make a contract which is unenforceable by virtue of the Statute. C prevents B from performing, and C’s conduct would be tortious if the contract were enforceable. Is the contract enforceable?

Answer 148

The Statute does not impair C’s tort liability to A or B. Restatement 2d of Contracts § 144(d)

Question 149

A contracts to sell a ship to B. The Statute is not satisfied. B insures the ship with C, an insurance company. The ship is lost. What recourse, under the Statute of Frauds, does C have?

Answer 149

The Statute provides no defense to C. Restatement 2d of Contracts § 144(d)

Question 150

A contracts to sell specific goods to B, title to pass at once. A retains possession and the contract is unenforceable, but the sale is not fraudulent under any rule of law. C, A’s creditor, attaches the goods as A’s before any repudiation of the contract. Is the attachment valid against B?

Answer 150

The attachment is invalid as against B. Restatement 2d of Contracts § 144(d)

Question 151

A promises orally to sell Blackacre to B and B pays A the price. Later A incurs debts which render him insolvent. A then signs a sufficient memorandum, or conveys the land to B. Can A’s creditor set aside the contract or the transfer?

Answer 151

A’s creditor cannot set aside the contract or the transfer as in fraud of creditors. Restatement 2d of Contracts § 144(d)

Question 152

A owes B a debt of $20,000. A’s land, worth $10,000, is about to be sold on foreclosure under a mortgage held by C. B contracts to bid in the land and to deduct from A’s debt to B $10,000 less the amount B pays. B bids in the land for $6,000. Does this count against A’s debt?

Answer 152

A’s debt is reduced by $4,000. Restatement 2d of Contracts § 145(a)

Question 153

At D’s request, S orally guarantees to C that D will pay a debt D owes to C. On D’s failure to pay at maturity, S pays the debt. Is C’s claim against D still enforceable? What recourse does S have against D, if any?

Answer 153

C’s claim against D is discharged, and S has the same rights against D as if S’s promise to C had been enforceable. Restatement 2d of Contracts § 145(a)

Question 154

A orally contracts to sell Blackacre to B. Later A contracts in a signed writing to sell Blackacre to C. Thereafter A signs a memorandum of his contract with B. B can enforce the contract specifically against A and C, whether or not C entered into his contract with knowledge of B’s, and whether or not B knew of C’s contract when the memorandum was signed. What recourse does C have against A, if any?

Answer 154

C may recover damages from A. Restatement 2d of Contracts § 146(b)

Question 155

A orally contracts to sell Blackacre to B. He transfers Blackacre to C by deed as a gift, C having knowledge of the contract with B. A subsequently signs a memorandum of the contract with B. What recourse does B have against A and/or C, if any?

Answer 155

B may recover damages from A, but cannot enforce the contract specifically against C. Restatement 2d of Contracts § 146(c)

Question 156

The facts being otherwise as stated in Illustration 2, A signs the memorandum before the conveyance to C. What recourse does B have against A and/or C, if any?

Answer 156

B can enforce the contract specifically against A and C. Restatement 2d of Contracts § 146(c)

Question 157

A orally contracts to sell Blackacre to B. Later a creditor of A attaches Blackacre. Thereafter A signs a memorandum of the contract. What recourse does C have against A and/or the creditor, if any?

Answer 157

B can enforce the contract specifically against A and the creditor. Restatement 2d of Contracts § 146(c)

Question 158

A, a bachelor, orally contracts to sell Blackacre to B. A marries. Thereafter A signs a memorandum of the contract. Does A’s wife have any interest in Blackacre?

Answer 158

A’s wife has no dower interest in Blackacre. Restatement 2d of Contracts § 146(c)

Question 159

In consideration of A’s oral promise to marry B and to settle $5,000 upon her, B promises to marry A. What recourse does B have against A, if any, under the Statute of Frauds?

Answer 159

If A refuses to marry B after B expresses assent to forego the settlement, the Statute of Frauds does not preclude an action by B against A for breach of promise to marry. Restatement 2d of Contracts § 147(a)

Question 160

For a single premium A orally insures a shipment of B’s goods against fire and also orally agrees to answer for certain defaults of the carrier. The goods are damaged by fire. What recourse does B have against A, if any, under the Statute of Frauds?

Answer 160

The Statute of Frauds does not prevent enforcement of the fire insurance. Restatement 2d of Contracts § 147(a)

Question 161

A promises to make a will leaving real and personal property to B in return for services to be rendered by B. B renders the services, but A dies leaving the property to someone else. What recourse does B have, if any, under the Statute of Frauds?

Answer 161

If the Statute of Frauds makes the contract unenforceable as to the real property, it is equally unenforceable as to the personal property. Restatement 2d of Contracts § 147(a)

Question 162

A and B orally agree that A will work for B for six months and that B will transfer to A an automobile valued at $2,400 and pay A $600 a month salary. Later the Statute is satisfied with respect to the sale of the automobile by receipt and acceptance. Is the balance of the contract enforceable under the Statute of Frauds?

Answer 162

The balance of the contract becomes enforceable. Restatement 2d of Contracts § 147(b)

Question 163

A employs B as plant manager under an oral agreement that B will be paid $600 a month and given an option to buy the plant, including real and personal property, on stated terms, but that A may substitute for the option an additional payment of $900 per month from the time B starts work. The amounts involved are not disproportionate. B works for several months and gives notice of his exercise of the option, but A refuses to sell. What recourse does B have against A, if any, under the Statute of Frauds?

Answer 163

The Statute of Frauds does not prevent B’s recovery of the additional payment. Restatement 2d of Contracts § 147(b)

Question 164

A and B orally agree that A will work for B for six months and that B will transfer to A an automobile worth $2,400 and pay A $600 a month salary. The Statute is not satisfied with respect to the sale of the automobile. Is the contract enforceable under the Statute of Frauds?

Answer 164

In the absence of a waiver by A, the entire contract is unenforceable. Restatement 2d of Contracts § 147(c)

Question 165

A written agreement between A and B provides that A’s manufacturing facilities will be shipped to B and set up and operated by B, that within one year A will buy from B for $70,000 certain goods to be manufactured by B, and that for two years A and B will engage in a joint selling enterprise with respect to other goods on terms to be mutually agreed upon. A and B later agree orally on the terms for the joint enterprise. After B begins manufacture, A repudiates the agreement. What recourse does B have against A, if any, under the Statute of Frauds?

Answer 165

The Statute of Frauds does not prevent B’s recovery of damages for refusal to complete the $70,000 purchases. Restatement 2d of Contracts § 147(c)

Question 166

A and B enter into a written contract of employment for a term exceeding a year. Later they orally agree to rescind the contract. Which is in effect under the Statute of Frauds: the oral agreement or written contract?

Answer 166

The oral agreement is effective and the written contract is rescinded. Restatement 2d of Contracts § 148(a)

Question 167

A contracts to sell and B to buy a refrigerator for the price of $500, and the refrigerator is delivered and paid for. One week later A and B orally agree that if B is not satisfied after a week’s further trial the transaction will be rescinded. There is no redelivery or repayment. Is the contract of rescission enforceable under the Statute of Frauds?

Answer 167

The contract of rescission is unenforceable. Restatement 2d of Contracts § 148(b)

Question 168

A and B contract in writing that A will sell and B will buy Blackacre for $140,000. Later A and B orally rescind the written contract. Is the contract enforceable under the Statute of Frauds?

Answer 168

The written contract is not enforceable. Restatement 2d of Contracts § 148(c)

Question 169

A and B make a written contract that A will employ B for two years at $500 a month. At the time B begins work, they agree orally to substitute a contract for six months at $600 a month. Is the contract enforceable? Is it under the Statute of Frauds?

Answer 169

The second contract is not within the Statute, is enforceable, and at once discharges the prior contract. Restatement 2d of Contracts § 149(a)

Question 170

A and B make a written contract that A will repair and sell to B two specific appliances for $3,000. Later they agree orally to eliminate one appliance and to reduce the price. Is the second contract within the Statute of Frauds?

Answer 170

Whether the second contract is within the Statute depends on whether the reduced price is $500 or more. See Uniform Commercial Code § 2-201. Restatement 2d of Contracts § 149(a)

Question 171

A and B make mutual promises to marry within one month. Later they orally agree that the marriage will be postponed for two years. Is the oral agreement enforceable?

Answer 171

The oral agreement is not enforceable. Restatement 2d of Contracts § 149(a)

Question 172

A and B make mutual promises to marry within one month, but these promises to marry are not within the Statute. Are the promises enforceable?

Answer 172

They remain enforceable unless there is a material change of position. See § 150. Restatement 2d of Contracts § 149(b)

Question 173

A promises to sell and B to buy a specific automobile for $3,000, delivery to be made in 30 days and payment in 60 days. Both parties sign a sufficient memorandum. The next day they orally agree on delivery in 45 days and payment in 90 days. Before any change of position B repudiates the oral agreement. Which is enforceable: the oral agreement or original contract?

Answer 173

The oral agreement is not enforceable. the original contract remains enforceable. Restatement 2d of Contracts § 149(b)

Question 174

A and B make an enforceable oral contract that A will work for B for 30 days at $20 a day. The next day A and B orally contract to substitute employment for two years at $6,000 a year. Which contract is enforceable?

Answer 174

The first contract remains enforceable. the second is not. Restatement 2d of Contracts § 149(b)

Question 175

A contracts with B that A will manufacture and sell to B described goods in installments at stated prices. Later A and B agree in a writing signed by B but not by A that the undelivered balance of the goods will be cancelled and that A will deliver a different type of goods at different prices. Which contract is enforceable?

Answer 175

Even though the later agreement is not enforceable against A and even though no action is taken under it, the original contract is rescinded. Restatement 2d of Contracts § 149(b)

Question 176

A and B contract in writing that A will sell specific goods to B for $1,000, delivery to be made in 30 days and payment in 60 days. Ten days later B orally requests that delivery be delayed until 45 days, and A so delays in reliance on the request. Has A’s duty been breached?

Answer 176

The delay is not a breach of A’s duty and does not excuse B from performing. Restatement 2d of Contracts § 150(b)

Question 177

A and B contract in writing that A will sell specific goods to B for $1,000, delivery to be made in 30 days and payment in 60 days. Ten days later B orally requests that delivery be delayed until 45 days, and A so delays in reliance on the request. B retracts his request for delay early enough to enable A without difficulty to deliver in accordance with the original terms. Does A still have a duty?

Answer 177

A is no longer justified in relying on B’s request for delay, either to excuse performance of A’s duty or to deny B an excuse for non-performance. Restatement 2d of Contracts § 150(c)

Question 178

A and B contract in writing that A will sell specific goods to B for $1,000, delivery to be made in 30 days and payment in 60 days. Ten days later B orally requests that delivery be delayed until 45 days, and A so delays in reliance on the request. A is unable to deliver for reasons independent of B’s request for delay. Did A still have a duty to deliver on time?

Answer 178

The request does not excuse A’s delay. Restatement 2d of Contracts § 150(d)

Question 179

A and B contract in writing that A will sell and B will buy a parcel of land on stated terms. B’s promise to buy is conditional on delivery by A within three days of a certificate showing his title. A does not furnish the certificate, and after three days B orally tells A that he need not furnish the certificate. Is B’s promise enforceable under the Statute of Frauds?

Answer 179

Though B’s implied promise to buy without the certificate is binding without consideration (see § 84), in the absence of reliance the promise is unenforceable by virtue of the Statute of Frauds. Restatement 2d of Contracts § 150(d)

Question 180

A and B make an oral agreement for the sale of Blackacre by A to B. With A’s consent B takes possession of the land, pays part of the price, builds a dwelling house on the land and occupies it. Two years later, as a result of a dispute over the amount still to be paid, A repudiates the agreement. What recourse does B have?

Answer 180

B may obtain a decree of specific performance. Restatement 2d of Contracts § 129(b)