Defenses to Enforcement

Question 1

What are the Defenses to Enforcement of a Contract?

Answer 1

Defenses to enforcement of a contract include:

(1) Statute of Frauds - Under the Statute of Frauds, certain agreements—at least the material terms—must be evidenced by a writing signed by the parties to be bound.
(2) Unconscionable Contract - A court may refuse to enforce all or part of an agreement if: (1) there was unfair surprise, or (2) unequal bargaining that leads to oppressive terms

Question 2

What contracts must be in writing under the Statute of Frauds?

Answer 2

There are 4 types of contracts within the Statute of Frauds: (1) Suretyship contracts (promises to pay for another’s debts); (2) Service contracts not capable of performance within a year; (3) transfers of interests in real estate; and (4) sales of goods for $500 or more.

Question 3

What are the exceptions to the Statute of Frauds?

Answer 3

The Statute of Frauds may be satisfied by:

(1) Judicial Admission - Admission in a pleading or in testimony that he entered the agreement
(2) Performance - Full performance is required if the contract is for the sale of goods or services.

For transfers of real estate, part performance will satisfy where at least 2 of the following requirements are met: (1) valuable improvements to the property, (2) payment (in whole or part), and/or (3) possession.