Enforcement Defenses

Question 1

Statue of Frauds

Answer 1

Contracts requiring a signed written agreement MYLEGS

1) Marriage - promises made in consideration of marriage
2) Year 1 - promises that by their wording cannot be performed within 1 year
3) Land - promises for transfer of interest in real estate. Exception leases for 1 year or less
4) Goods - sale of goods $500 or more
5) Surety - promise to pay the debt of another

Question 2

Exceptions to State of Frauds

Answer 2

1. Part Performance: Performance that unequivocally indicates intent to follow contract.
2. Memo: Need not be in a single document. Memos must prove required elements of a contract, e.g. QTIPS- quantity, time, identity of parties, price, subject matter
3. Admitted: Existence of contract is admitted by D under oath
4. UCC Exceptions:
   a. Written Confirmation: One merchant sends written confirmation of oral contract and receiver does not object within 10 days.
   b. Specialty Goods: Seller started manufacturing a specialty good pursuant to an oral contract with the buyer. Seller is unable to sell goods to another without significant burden

Question 3

Unconscionability

Answer 3

Extreme unfairness at the time the contract was made

Question 4

Procedural Unconscionability

Answer 4

Good defense if at the time of offer/acceptance there is a contradiction between verbal agreement and the fine print (e.g. Hidden disclaimers of warranty and take it or leave it provisions)
*power disparity between parties is evidence of unconscionability

Question 5

Substantive Unconscionability

Answer 5

Bad defense if there is no contradiction between verbal agreement and fine print, and the deal turns out to be unfair for one party (a bad deal is no defense)