lesson 12 Flashcards
1677 british statue of frauds
due to disputes in early times, this was passed by parliament to require that certain types of contracts had to be in writing to be enforceable
agreements subject to the statue of frauds
- contracts for the sale or transfer of real estate/land
- contracts that could not be performed within 1 year
- contracts in which a party promises to pay the debts of another
- contracts by the executor to pay the debts of an estate
- contracts made in consideration of marriage
- contracts for the sale of goods of $500 or more
agreements for an interest in land
most well known, any type of contract dealing with land
- easement/right of way
- lien
- mortgage
- deed of trust
easement/right of way
right to cross land
lien/mortgage
document that shows that money is owed, attaches debt to item
deed of trust
shows bank can foreclose if not paid
exceptions to a requirement of writing for agreements dealing with land
- if seller in contract dealing with land has completely and fully performed
- partial performance by buyer will often have court enforce non-writing contract (buyer pays for land and begins excavating, seller changes his mind bc of SOF)
- promissory estoppel, a promise that person relies on
agreements that cannot be performed in one year
if contract can be performed in less than a year, it need not be in writing, one year period begins at time of agreement
joseph made a deal for bill to mow his yard every week for 2 years. does this have to be in writing?
NO. Bill’s work BEGINS less than one year after the agreement.
promise to pay the debt of another
aka collateral promise rule
woody needs 20k, asked mia for a loan, mia asked her cousin nate. She told nate that if he loaned the money and woody didn’t pay him back, mia would pay nate back. Nate loaned money, woody didn’t pay, and mia declined to pay nate. Court held against Nate since Mia’s promise to pay was not in writing.
exception to promise of paying the debt of another
leading object rule: if the leading object of the person guaranteeing the loan is to benefit the promisor, SOF does not apply, no writing required
- if woody was using money to build addition to mias house, mia’s guarantee to nate would not have to be written
promise by executor or administrator to pay the debt of an estate
an executor or administrator that agrees to pay the debts of an estate can not be held to pay unless the agreement is in writing
executor
testate, die with a will, person who takes care of your property and makes sure it goes where it should after you die
administrator
intestate, if you die without a will
promise made in consideration of marriage
man offers woman 1 million to marry him, she does, he doesn’t pay, without writing he doesn’t have to pay
things that have been held in court to be writings that satisfy the SOF
- formal doc that provides great detail, prepared by lawyers
- informal typed note signed by the parties
- haphazardly drawn agreement written on the back of an envelope
- short note made on napkin in restaurant
- series of several writings that put together satisfy the SOF
is there a requirement of formality in SOF?
no
what do all writings require to satisfy the SOF?
- must identify the names of the parties
- must state subject matter of agreement
- must list essential terms of agreement
- must be signed by parties
issues that sometimes arise with writing
- signature - virtually any mark will do
- reasonable certainty - can the court reasonably determine the intent of the parties and the terms of the agreement
- vagueness - vague agreements/terms do not suffice
- incompleteness - if a term is left out and there is no way for the court to determine the intent of the parties, it does not satisfy the SOF
_____ certainty is not required, but ______ is
absolute, reasonable certainty
UCC and its application to the statue of frauds
main application is that it requires any contract for the sale of goods for $500 or more to be in writing
common law SOF requires _____, UCC requires _______
SOF - reasonable clarity and reasonable certainty of terms
UCC - an indication that parties reached an agreement
exceptions to the UCC statue of frauds
- merchant’s exception - after parties make an oral agreement that should have been written under SOF, if a merchant sends written confirmation to the other, and if the written confirmation is definite enough to bind the sender, then the merchant that receives the confirmation is also bound by the writing, unless he objects within 10 days
- special circumstances - seller is specially manufacturing goods for the buyer, defendant admits in court that there was a contract, goods have been delivered or paid for
parol evidence
anything that is said, done, or written before the parties sign the agreement
