Final - Ch. 8 - Statute of Frauds

Question 1

3 possible exceptions to the suretyship writing requirement

Answer 1

1. cosigner instead of guarantor (equally liable instead of agreeing only if primary defaults)
2. promise to other signer to pay if he can’t (instead of to lender)
3. equal benefit or more benefit for guarantor (Dad acts as surety for son on car but uses the car as much as he does)

Question 2

4 exceptions to the UCC’s “$500 or more” requirement

Answer 2

1. goods specificlally manufactured for buyer, not suitable for sales to others + seller has made a substantial commitment
2. party “trying to get out of it” admits in court agreement was made
3. good have been received and accepted
4. payment has been accepted

Question 3

4 thigns needed to satisfy the “in writing” memo necessity under SoF

Answer 3

1. reasonably identify parties and subject of contract
2. indicate a contract has been made between the parties
3. state with reasonable certainty the material or essential terms of the contract (no ambiguity)
4. be signed by or on behalf of the party to be charged

Question 4

5 things that can satisfy te “signature” necessity under SoF

Answer 4

1. printed signature
2. typed signature
3. actual signature
4. initials
5. X

Question 5

5 types of real estate transactions, all of which must be in writing

Answer 5

1. real estate sales
2. leases
3. mortgages
4. options on land
5. easements (limited right to use real property)

Question 6

6 types of contracts that must be in writing accords to statutes of frauds

Answer 6

1. Marriage - promises in anticipation of
2. Year - cannot be performed within one
3. Land - real estate contracts
4. Estate debts - promises by an executor to pay
5. Goods over $500 - sales of (UCC rule)
6. Suretyship

Question 7

6 types of contracts under SoF

Answer 7

1. Marriage (contracts in consideration of)
2. Year (not doable within one)
3. Land
4. Estate debts (agreement to take on another’s)
5. Goods (over $500)
6. Suretyship

Question 8

A (1)–designed to control transfer of property according to statute–is one example of a contract in consideration of marriage that falls under SoF. Another common example is (2), but to fall under SoF the promise must be made to the (3), NOT to (4)

Answer 8

1. prenuptial agreement
2. exchange of wedding assets
3. bride or groom (making the marriage consideration toward the assets)
4. each other (making the exchanges consideration for each other and conditional upon the marriage)

Question 9

A deed does not have to be in writing under (1), but it does under (2).

Answer 9

1. Statute of Frauds
2. property laws (for tracking chain of title)

Question 10

Any contract within the scope of the Statute of Frauds may not be (1) unless a (2) is written and signed by the (3).

Answer 10

1. enforced
2. memorandum (containing important parts of the contract)
3. party to be charged (one against whom enforcement is sought) (defendant)

Question 11

Any contract, irrespective of (1), must comply with the SoF if it cannot be (2) within one year of (3). Not applicable if performance within a year is (4), even if (5).

Answer 11

1. subject matter
2. performed
3. execution (signing)
4. possible
5. unlikely

Question 12

bond

Answer 12

a type of insurance policy in which the bonding company pays and then pursues the deadbeat debtor

Question 13

Courts (1) the SoF wherever possible; many require it to be pled as an (2) or else it is (3). (4) to a contract may fall under SoF even if the actual contract does not.

Answer 13

1. avoid
2. affirmative defense
3. waived
4. Modification

Question 14

Courts like to take agreements out of S of F territory. Most courts hold that if the Statute of Frauds is not raised as an (1), or if the party admitted in (2) or (3) that there is an agreement, it is waived. The Statute may not be raised after the contract has been (4) and may not be raised in some cases if (5). (6) may also excuse the need for writing.

Answer 14

1. affirmative defense
2. court
3. court documents
4. fully performed
5. one party has performed
6. Conduct consistent with existence of a contract

Question 15

Despite the L part of MYLEGS, (1) only have to be in writing if they are longer than a year

Answer 15

leases

Question 16

Does a book marked down to $450 from an original price of $900 fall under the SoF, requiring a contract in writing to be enforceable?

Answer 16

No. The marked-down price is under the $500 SoF threshold.

Question 17

Does a contract that A promises B to pay B a pension for the rest of A’s life need to be in writing?

Answer 17

No. The person could die within a year, completing the contract.

Question 18

Does a contract to employ someone for life need to be in writing?

Answer 18

No. The person could die within a year, terminating employment and completing the contract

Question 19

Does a contract to employ someone for two years need to be in writing?

Answer 19

Yes. It is not possible to perform two years’ work in one year.

Question 20

Does a contract to take care of a person until death need to be in writing?

Answer 20

No. The person could die within a year, completing the contract.

Question 21

Does a covenant not to compete for two years need to be in writing?

Answer 21

No. The person could die within a year, ending the contract (any ability to compete).

Question 22

Does this contract need to be in writing?

A + B orally agree to marry

Answer 22

No. This is a promise to marry.

Question 23

Does this contract need to be in writing?

A Bride’s mother orally promises daughter that if daughter marry X then mother will give the couple $10k after the wedding.

Answer 23

Yes, it is not enforcable. This is not enforcable because it was an oral promise and is not in writing. It is in consideration of marriage, which NEEDS to be in writing.

Question 24

Does this contract need to be in writing?

Defendant promises Plantiff to pay Plaintiff $300 month for the rest of her life in exchange for Plaintiff droppinf lawsuit.

Answer 24

No. This is valid and it does not need to be in writing because this IS capable of being completed in one year (she could die within that year).

Question 25

Does this contract need to be in writing?

Father of prospective groom and Mother of prospective bride agree that IF marriage takes place, each of them will gove $10k to the couple.

Answer 25

No. IS enforceable and does NOT need to be in writing because the promises are the consideration; not the marriage.

Question 26

Does this contract need to be in writing?

In 2013, the president promises to make a speech at a college in 2016.

Answer 26

Yes. It must be in writing because it cannot be performed within one year of signing.

Question 27

Does this contract need to be in writing?

A couple owns a lot who is contracting for home to be build.

Answer 27

No. This there is no transfer of land here.

Question 28

Generally the signature can appear (1) on the memorandum, though some statutes require it to be (2).

Answer 28

1. anywhere
2. subscribed (at bottom; nothing afterward)

Question 29

It is immaterial for the party (1) to have signed the contract under SoF

Answer 29

seeking enforcement

Question 30

maintenance bond

Answer 30

warranty on a product to guaranty workmanship (e.g., promise to replace a faulty appliance)

Question 31

payment bond

Answer 31

a person needing a service (e.g., a house built) and uses a single contractor to coordinate–some of the sub-work may not be under his control (e.g., plumbing), but this ensure payment to the subcontractors to avoid them coming after the owner for a mechanic’s lien. In other words, this releases that lien.

Question 32

performance bond

Answer 32

if party does not perform according to contract, someone else will be brought in to finish/repair and the bond will pay for that

Question 33

Performance Bond, Maintenance Bond, and Payment Bond

Answer 33

Performance bond - guarantees that a contract will be performed according to its terms and specifications – type of surety (guarantor agrees to complete or to pay penalty for lack of completion)
-Maintenance bond -assures a project will remain free of defects in workmanship or materials for a specific period of time
-Payments bond - a person needing a service (e.g., a house built) and uses a single contractor to coordinate–some of the sub-work may not be under his control (e.g., plumbing), but this ensure payment to the subcontractors to avoid them coming after the owner for a mechanic’s lien. In other words, this releases that lien

Question 34

promise to guarantee the debt of another, made without benefit to the party making the promise (must be in writing–covers Estate and Suretyships of MYLEGS)

Answer 34

collateral promise

Question 35

The “within a year” requirement does not apply if the contract is (1) within this time, regardless of whether performance is (2) or (3) within a year. Also unimportant is whether performance within a year actually (4). Promises with (5) and promises with (6), on of which can be performed in a year, are not subject to the requirement. The time requirement is also based from time of (7), not from when performance begins.

Answer 35

1. performable
2. likely
3. anticipated
4. occurs
5. uncertain duration
6. alternatives (e.g., restitution per year–but it is possible the person may die within the year)
7. agreement (2014 agreement to speak at Yale in 2016–subject to requirement)

Question 36

The consequences of non-compliance with the Statute of Frauds is (1), NOT (2)!

Answer 36

1. unenforceability
2. invalidity

Question 37

The E in MYLEGS regards someone responsible for carrying on the (1) of another, or the (2) of a deceased person. To take on the deceased’s (3) requires writing under S of F.

Answer 37

1. estate
2. finances
3. debt

Question 38

The equivalent of promissory estoppel with regard to the SoF–one party relied on the unenforceable promise to his or her detriment

Answer 38

“unconscionable injury”

Question 39

The L part of MYLEGS applies both the (1) and to (2)

Answer 39

1. sales of land
2. disposal of interest (easements, etc.)

Question 40

The SoF is no longer in effect in its place of origin, (1), but remains in effect here everywhere except (2)

Answer 40

1. England
2. Louisiana

Question 41

The Statute of Frauds was made to prevent (1).

Answer 41

1. perjury

Question 42

The UCC’s “$500 or more” requirement does not apply to (1).

Answer 42

services

Question 43

To fall under the SoF, a suretyship must be promised to the (1), NOT the (2). The SoF also does not apply if the guarantor promises to be (3).

Answer 43

1. creditor
2. debtor
3. primarily liable (send me the bill for his car)

Question 44

Unenforceability due to Statute of Frauds does not preclude enforceability due to (1) and (2)

Answer 44

1. quasi-contract
2. promissory estoppel

Question 45

What estate debts need to be in writing to be enforcable?

Answer 45

Debts incurred by decedent prior to death

Question 46

What is the difference between a suretyship, which falls under SoF, and co-signing?

Answer 46

A suretyship is a guarantee to take on someone else’s debt only if the primary signer defaults and all remedies have been exhausted against him.
In co-signing, both signers are liable and responsible for paying if the other doesn’t.

Question 47

What was the ruling in the engagement ring/bounced check on CoD/click-wrap done by clerk example?

Answer 47

Contract unenforceable. Click-wrap = signing of contract, and this was not done by the consumer.

Question 48

When an email settlement was conducted by attorneys in the land dispute and the party challenged this settlement on the grounds of SoF, what was the ruling?

Answer 48

Yes to SoF because land. Yes enforceable because email signatures sufficed.