Formal and Evidentiary Requirements

Question 1

What are four reasons it is a good idea to have a contract be in writing?

Answer 1

1. To reduce evidentiary disputes
2. To put parties on notice re: the obligations they are about to undertake
3. To mark the transition from negotiation to contract
4. To protect a weaker party (typically a consumer)

While various statutes require some contracts to be in writing, this module focuses on the requirements of the Statute of Frauds (Ireland) 1695

Question 2

What are contracts required to be in writing per the Statute of Frauds (Ireland) 1695?

Answer 2

1. Contracts to pay for the debt of another
2. Contracts made in consideration of marriage
3. Contracts not to be performed within one year
4. Contracts for the sale of land

Requirement re: contracts for sale of goods in excess of 10 EUR repealed by 2022 Consumer Protection Act.

Question 3

Fennell v Mulcahy

Answer 3

Irish case
Tenant in arrears on rent, whose goods are seized by landlord. Mulcahy promises to pay the debt of the tenant. Goods are returned by landlord but he is still not paid. Court rules because contract is not in writing as required by the Statute of Frauds, it is not enforceable.

Question 4

Mackie v. Wilde (No. 2)

Answer 4

Irish case
Contract re: fishing rights in a river was determined to be covered by the “contract for the sale of land” provision of the Statute of Frauds.

Question 5

Scully v. Corboy

Answer 5

Irish case
Contract re: meadowing/grazing rights was determined NOT to be covered by the “contract for the sale of land” provision of the Statute of Frauds.

Question 6

Naughton v Limestone Land Co

Answer 6

Irish case
Defendant verbally agreed to employ Naughton for four years if Naughton went to London to study land drainage for three months. After Naughton’s return from London, LLC refused to employ him. As the employment contract term was for more than one year, oral agreement was found to be unenforceable per Statute of Frauds.

Question 7

What is the difference between indemnity and guarantee when it comes to contracts to pay for the debt of another?

Answer 7

Indemnity means you could be held liable for the debt regardless of whether or not the other person defaults on their payment obligation.

Guarantee means your requirement to pay is conditional - you’ll only have to pay if the other party doesn’t perform their payment obligation.

Question 8

What elements of a contract must be in writing?

Answer 8

The three Ps: parties, property, and price.

Question 9

What are the requirements for the contract memorandum?

Answer 9

1. Must be documented prior to the commencement of the action which it seeks to enforce.
2. It must include the 3 Ps: parties, property, and price.
3. Signature

A memorandum may be composed of a number of documentts.

Question 10

Black v Grealy

Answer 10

Irish case
Contract for a property that is for sale contained an incorrect total price figure because party drawing up contract incorrectly deducted the deposit paid by the buyers from the selling price. Because the contract did not contain the correct price, Court held the contract to be invalid.

Question 11

Casey v Irish Continental Bank

Answer 11

Irish case
Solictor instructed a secretary to type a letter on the firm’s letterhead. The letterhead contained all of the required written contract terms. Court deemed the company letterhead to have served as the “signature” in absence of a written signature. Contract upheld as valid.

Question 12

Orton v. Collins

Answer 12

British case
Emailed signature of “Yours faithfully - Putsmans” found to constitute as a signature. Contract upheld as valid. [Putsmans was the name of a professional services firm which was one of the parties to the contract.]

Question 13

Tenant in arrears on rent, whose goods are seized by landlord. The tenant, a third party, promises to pay the debt of the tenant. Goods are returned by landlord but he is still not paid. Court rules because contract is not in writing as required by the Statute of Frauds, it is not enforceable.

Answer 13

Fennell v Mulcahy
Irish case

Question 14

Contract re: fishing rights in a river was determined to be covered by the “contract for the sale of land” provision of the Statute of Frauds.

Answer 14

Mackie v. Wilde (No. 2)
Irish case

Question 15

Contract re: meadowing/grazing rights was determined NOT to be covered by the “contract for the sale of land” provision of the Statute of Frauds.

Answer 15

Scully v. Corboy
Irish case

Question 16

Defendant verbally agreed to employ the plaintiff for four years if the plaintiff went to London to study land drainage for three months. After the plaintiff’s return from London, LLC refused to employ him. As the employment contract term was for more than one year, oral agreement was found to be unenforceable per Statute of Frauds.

Answer 16

Naughton v Limestone Land Co
Irish case

Question 17

Contract for a property that is for sale contained an incorrect total price figure because party drawing up contract incorrectly deducted the deposit paid by the buyers from the selling price. Because the contract did not contain the correct price, Court held the contract to be invalid.

Answer 17

Black v Grealy
Irish case

Question 18

Solictor instructed a secretary to type a letter on the firm’s letterhead. The letterhead contained all of the required written contract terms. Court deemed the company letterhead to have served as the “signature” in absence of a written signature. Contract upheld as valid.

Answer 18

Casey v Irish Continental Bank
Irish case

Question 19

Emailed signature of “Yours faithfully - Putsmans” found to constitute as a signature. Contract upheld as valid. [Putsmans was the name of a professional services firm which was one of the parties to the contract.]

Answer 19

Orton v. Collins
British case

Question 20

What is meant by a joinder of documents?

Answer 20

Two or more documents that execute a contract.

Question 21

What is the significance of the phrase ‘subject to contract’?

Answer 21

Including this on a document will generally prevent it from being a contract.