Round 2 Lecture 2 Flashcards
statutes of fraud
- require that certain contracts be evidenced by a satisfactory writing
- came out of early English courts
- made to prevent fraud
- lists specific contracts that must be in writing
general observations about statutes of fraud
- most contracts do not have to be evidenced by a writing
- important contracts should be evidenced by a writing regardless of whether or not a statute requires a writing
- is the writing the contract or proof of an oral contract entered into earlier (did you meet the writing requirement)
what types of contracts must be in writing?
1) guarantee contracts
2) contracts involving real estate
3) contracts incapable of performance w/in one year from the date made
guarantee contract
- “if X does pay, I’ll pay”
- applies to collateral (or secondary promise)- promisor (guarantor) not primarily liable, but only liable if the party whose performance is guaranteed fails to perform
exceptions to guarantee contracts needing to be in writing
-main purpose doctrine (where the object of the guarantor is to obtain an economic benefit that he or she did not previously have)
types of contracts involving real estate
- purchase/sale
- mortgage
- leases
- easements
- licenses
- contracting to build a home
exceptions to real estate contracts needing to be in writing
real estate lease with a term of one year or less (kind of stupid to not have this in writing though)
when does the one year commence? (for contracts in writing)
- the day after the contract is entered into
- could the contract under its terms possibly be performed within one year, however improbably performance within on year may be-if so no writing is required
general thoughts about type of writing required
-writing need not be a formal document nor must all terms be included in single writing (can draw several docs together)
writings must include- the basics
- identification of parties
- identification of subject matter and consideration
- signed by the party against whom enforcement is sought
- other essential terms and conditions (will vary with terms of contract)
what will satisfy the writing requirement?
written agreements, letters, daybook notations, or other writings whether or not the parties intended the writing to have legal consequences
judicial enforcement of a contract
- not available
- the parties cannot sue each other for a failure to perform the contract
can oral contracts be attacked?
if it is fully executed, it cannot be attacked on the basis that it should have been in writing
effect of an under oath admission that contract exists
contract is still not enforceable in a majority of states
equitable recovery based on promissory estoppel …
may be available to avoid an unjust result from a contract being declared unenforceable