Contracts: Common Law

Question 1

1. Price
2. Parties involved
3. Nature of the subject matter
4. Quantity involved
5. Time for performance

Under a common law contract, can these pieces of information be established through prior dealings?

Answer 1

No. Under common law, the price, parties involved, nature of the subject, quantity, and time to perform all have to be explicitly stated in order to be binding.

Question 2

Under common law, do contracts have to be in writing in order to be binding?

Answer 2

No, unless it falls under the Statute of Frauds

Question 3

What is the statute of frauds?

Answer 3

The statute of frauds requires a written contract signed by the defendant (the one trying to leave the contract) in order for it to be binding

Question 4

Under common law, what types of contracts are required to be in writing under the statute of frauds (GROSS):

Answer 4

1. sales of Goods greater than $500
2. sales of Real estate
3. sales that will be performed for Over one year
4. Suretyship (guarantee the debt of another)
5. Statements of consideration of marraige

Question 5

Are there any exceptions to the statute of frauds? Meaning, are there any situations where a contract falls under the statute, yet it wouldn’t need to be in writing? (SPAM)

Answer 5

Yes. Even if a contract doesn’t fall under the Statute of Frauds, it would still need to be in writing if:

1. the contract is for items Specifically manufactured for that specific client
2. the contract has already been Partially performed
3. the defendent Admits in court that they made a contract
4. Merchant bound by silence after 10 days