Page 19 Flashcards
According to the SOF, what are contracts that must be in writing?
MY LEGS
- in consideration of MARRIAGE
- ones that cannot be performed within ONE YEAR from its making
- sale of an interest in LAND
- sale of GOODS
- contracts of SURETYSHIP
What are the exceptions to SOF that make it so you don’t have to have a writing?
- goods: merchant’s confirming memo
- land: part performance
- one year: detrimental reliance
- suretyship: main purpose rule
Under the SOF when is a writing required for land issues?
If there is an interest in land being sold, a transfer of legal estates in land, assigning a lease, easement, rent, option to buy land, liens, mortgages
If the subject matter is about building a house, instead of land, is that within the SOF?
No, the subject matter must be land
What is the exception to the sale of land provision of the SOF?
Part performance
What is involved in the part performance exception to the sale of land provision of the SOF?
Possession plus:
- partial payment or
- improvements
This proves an agreement and takes the contract out of SOF
If the seller has performed his side of the contract by conveying his interest to the buyer, what can he recover if there is no writing?
The purchase price
Is a contract to share the profits from the sale of land within the statute of frauds?
No, because it is not a contract for the sale of land, since it doesn’t convey an interest in land
What is the SOF one year rule?
Contracts that, by their own terms cannot be fully completed within a year must be in writing
If a contract is restated at the beginning of performance, what does that do to the one year provision under the SOF?
Remakes the contract and the year starts then
When is the one-year provision of the SOF measured from?
The time the contract was actually formed until completely performed (not date performance is promised for)
If performance is possible within one year, must there be a writing under the SOF?
No
Is a promise to care for someone until they die within the one-year provision of the SOF?
No, because it is capable of ending before one year since the person might die in that time, no writing is required
If a contract can’t be performed within the one year of the SOF, but it has been fully performed on one side, is it enforceable even if oral?
Yes
If it would be a breach to perform within one year, is the contract covered by SOF?
Yes
Oral contracts for one year of service are allowed, if the work begins when?
On the same day the contract was executed or the day following
Do indefinite durations fall within the SOF?
No
What are some examples of uncertain events that would be possible to be performed within a year, so SOF would not apply to?
- war
- care for a person during their lifetime
- promise to service equipment as long as needed
- lifetime employment
If promises of multiple alternative performances are made, and any of them can be performed within one year, is the contract within the SOF?
No
What is the UCC sale of goods rule under SOF?
There must be a writing or part/full performance if the sale of goods is $500 or more, and must be signed by party to be charged
What is the definition of goods?
Tangible movable property
What are exceptions to the UCC $500 goods rule under the SOF?
- merchant’s confirmatory memo
- specialty goods/manufacture
- receipt and acceptance
- partial payment
- admission in court
What is the UCC’s merchant’s confirmatory memorandum?
One merchant makes an oral order for goods, then the other merchant confirms the order in writing and sends it to the first. If the first doesn’t respond within 10 days, the memo is confirmed if the receiver had reason to know of its contents. The memo must ID parties, quantity of goods, and be signed by party to be charged
How could a merchant’s confirmatory memorandum not be legally sufficient?
- if the parties weren’t merchants
- the sending merchant didn’t sign it
Then the contract is only enforceable to the extent of performance: amount paid or goods accepted
What is the specialty goods/manufacture exception to the UCC sale of goods valued at $500 under the SOF?
If the goods were specially manufactured for the buyer and not suitable for sale to others, no writing is required. If before repudiation, manufacturer has made a substantial beginning of manufacture, or commitment for procurement, or acted in reliance on the contract, that satisfies SOF
If a buyer receives or accepts all or part of goods, what does that mean under the UCC sale of goods at $500 under the SOF?
The contract becomes enforceable as to those accepted and there doesn’t need to be a writing
If there is an admission in court that there is a contract, what does that do to SOF?
Takes the contract out of SOF
What is a suretyship contact under the SOF?
A contact to guarantee the debt or duty of another, and it must be in writing
When does suretyship not require a writing under the SOF?
When the promise to pay another’s debt actually had the main purpose of getting an immediate benefit or advantage to the person who made the promise
If you find out your business partner owes money to someone and you don’t want others to find out about it because it will look bad for your business, so you settle the debt for your partner, does SOF apply?
No, because the main purpose was an immediate benefit to yourself
