STATUTE OF FRAUDS Flashcards
Name the types of contracts that are within the Statute of Frauds.
Does FL require additional contact to be in writing? Yes. Name the additional types.
- MARRIAGE: Contract made in consideration of marriage
- SURETYSHIP: Contract made to answer for the debt of another
- ONE YEAR: A contract that cannot be performed within one year from its making
- UCC: Contract for the sale of goods with a price greater than $500
- REAL PROPERTY CONTRACT: A contract for the sale of an interest in real property
FL DISTINCTION: ADDTL CONTRACTS WITHIN THE STATUTE OF FRAUDS besides the C/L and Restatement types as noted.
- EXECUTOR CONTRACT: A promise by an administrator of a will to pay any debt or damages from his own estate.
- NEWSPAPER SUBSCRIPTIONS: newspapers, periodicals and other publications (agreement must be in writing)
- HEALTHCARE: A guarantee, warranty or assurance as to the results of any medical, surgical or diagnostic procedure performed by a licensed physician
- DEBT: A contract satisfying a debt or obligation for less than the full amount
FL DISTINCTION: FL LAW PREVENTS A DEBTOR FROM ENFORCING A CREDIT AGREEMENT (e.g. a loan) AGAINST THE CREDITOR UNLESS THE AGREEMENT IS IN WRITING AND SIGNED BY BOTH DEBTOR AND CREDITOR.
STATUTE OF FRAUDS - SURETYSHIP PROVISION: EXPLAIN THE NATURE OF A SURETYSHIP PROVISION AND WHAT WOULD BE CHARACTERIZED AS A SURETYSHIP TYPE OF TRANSACTION ?
SURETYSHIP: THREE-PARTY CONTRACT, WHERE ONE PARTY (THE SURETY) PROMISES A SECOND PARTY (THE OBLIGEE) THAT THE SURETY WILL BE RESPONSIBLE FOR ANY DEBT OR OTHER OBLIGATION OF A THIRD PARTY (THE PRINCIPAL) RESULTING FROM THE PRINCIPAL’S FAILURE TO PAY OR PERFORM AS AGREED.
A SURETYSHIP INDUCE THE SECOND PARTY TO EXTEND CREDIT OR OTHERWISE PERFORM AN OBLIGATION TO THE THIRD PARTY.
RESTATEMENT: A PROMISE TO ANSWER FOR THE DEBTY OR OTHER OBLIGATION OF ANOTHER MUST GENERALLY BE IN WRITING TO BE ENFORCEABLE.
WHAT ABOUT AN ADMINISTRATOR OR EXECUTOR OF A DECEDENT’S ESTATE PAYING OUT MONEY FOR DEBT OWED BY THE DECEDENT?
A CONTRACT OF AN ADMINISTRATOR (OR EXECUTOR) OF A DECEDENT’S ESTATE MAY FALL INTO THIS CATEGORY WHEN THE ADMINSTRATOR PROMISES THE CREDITOR OF THE DECEDEN’T ESTATE THAT THE ADMINISTRATOR WILL ASSUME PERSONAL LIABILITY FOR THE DEBT IF THE ESTATE DOES NOT HAVE THE FUNDS TO PAY.
REGARDING DEBTS INCURRED BY THE DECEDENT, THE ADMINISTRATOR IS TREATED AS THE SURETY, EVEN THOUGH THE ADMINSTRATOR’S PROMISE DID NOT INDUCE THE CREDITOR TO EXTEND CREDIT TO THE DECEDENT.
REGARDING DEBTS INCURRED BY THE DECEDENT’S ESTATE AFTER THE DECEDENT’S DEATH (e.g. FUNERAL EXPENSES) –IN JURISDICTIONS THAT ADHERE TO THE COMMON LAW, THE ADMINISTRATOR IS PERSONALLY LIABLE FOR SUCH DEBTS AND THE CREDITOR DOES NOT NEED THE ADMINISTRATOR’S PROMISE TO PURSUE COLLECTION OF THOSE DEBTS FROM THE ADMINISTRATOR PERSONALLY.
UPC: WITH JURISDICTIONS THAT FOLLOW THE UNIFORM PROBATE CODE, THE ADMINISTRATOR IS NOT PERSONALLY LIABLE FOR THE DEBTS OF THE DECEDENT’S ESTATE AND A PROMISE BY THE ADMINISTRATOR TO BE PERSONALLY LIABLE FOR THOSE DEBTS WOULD CONSTITUTE A SURETY PROMISE AND THEN MUST COMPLY WITH THE STATUTE OF FRAUDS.
STATUTE OF FRAUDS AND INDEMNITY CONTRACTS
WHAT IS AN INDEMNITY CONTRACT?
AN INDEMNITY CONTRACT (PROMISE TO REIMBURSE FOR MONETARY LOSS) DOES NOT FALL WITHIN THE STATUTE OF FRAUDS AS A SURETYSHIP PROVISION.
FLORIDA HAS SOME DIFFERENCES WHEN IT COMES OT CONSTRUCTION CONTRACTS AND INDEMNIFICATION AND WHAT WOULD NOT BE COVERED UNDER AN INDEMNIFICATION CLAIM. EXPLAIN.
FL POINT OF LAW: IN FL, A CONSTRUCTION CONTRACT INVOLVING ANY CONSTRUCTION, REPAIR OR DEMOLITION OF REAL PROPERTY OR ITS ATTACHED STRUCTURES BETWEEN A REAL PROPERTY OWNER AND AN ARCHITECT, ENGINEER, GENERAL CONTRACTOR, SUBCONTRACTOR SUB-SUBCONTRACTOR, MATERIALMAN, OR ANY COMBINATION, THAT CONTAINS AN INDEMNITY PROVISION MUST CONTAIN A MONETARY LIMITATION ON THE EXTENT OF THE INDEMNIFICATION THAT BEARS A REASONABLE COMMERCIAL RELATIONSHIP TO THE CONTRACT. THE MONETARY LIMITATION MUST NOT BE LESS THAN $1 MILLION PER OCCURRENCE, UNLESS OTHERWISE AGREED BY THE PARTIES.
FL POINT OF LAW: INDEMNIFICATION CLAIMS DO NOT INCLUDE CLAIMS OF, OR DAMAGES FROM GROSS NEGLIGENCE, OR WILLFUL, WANTON OR INTENTIONAL MISCONDUCT OF THE INDEMNITEE, OF ITS OFFICERS, DIRECTORS, AGENTS, OR EMPLOYEES, OR FOR STATUTORY VIOLATION OR PUNITIVE DAMAGES EXCEPT TO THE EXTENT THE STATUORY VIOLATION OR PUNITIVE DAMAGES ARE CAUSED BY OR RESULT FROM THEA CTS OR OMISSIONS OF THE INDEMNITOR OR ANY OF THE INDEMNITOR’S CONTRACTORS, SUBCONCONTRACTORS, SUB-CONTRACTOR’S MATERIALMEN, OR AGENTS ON THEIR RESPECTIVE EMPLOYEES.
Statute of Frauds: Real Property Contracts - Part Performance
EVEN IF AN ORAL CONTRACT FOR THE TRANSFER OF AN INTEREST IN REAL PROPERTY IS NOT ENFORCEABLE AT THE TIME IT IS MADE, SUBSEQUENT ACTS BY EITHER PARTY THAT SHOW THE EXISTENCE OF THE CONTRACT MAY MAKE IT ENFORCEABLE, EVEN WITHOUT A MEMORANDUM. SUCH ACTS INCLUDE WHAT?:
- PAYMENT OF ALL OR PART OF THE PURCHASE PRICE;
- POSSESSION BY THE PURCHASER; OR
- SUBSTANTIAL IMPROVEMENT OF THE PROPERTY BY THE PURCHASER.
**MOST JURISDICTIONS REQUIRE AT LEAST TWO OF THE ABOVE THREE ACTS TO ESTABLISH SUFFICIENT PART PERFORMANCE
*** FL LAW RE REAL PROPERTY CONTRACTS AND PART PERFORMANCE ALL THREE ELEMENTS ARE REQUIRED (NOT JUST TWO LIKE MOST JURISDICTIONS)
FL POINT OF LAW AS TO PART PERFORMANCE AND REAL PROPERTY CONTRACTS: (1) PAYMENT–ALL OR PART; (2) POSSESSION BY THE PURCHASER; OR (3) SUBSTANTIAL IMPROVEMENT OF THE PROPERTY BY THE PURCHASER.
FL. ALL THREE ELEMENTS MUST EXIST TO APPLY THE DOCTRIME OF PART PERFORMANCE
WHEN DOES FL RECOGNIZE TJE DOCTRINE OF PART PEFORMANCE?
IN AN EQUITABLE ACTION, AS A RELIEF FROM FRAUD (e.g. QUIET TITLE ACTION, EJECTMENT ACTION) BUT NOT AN ACTION AT LAW.
FL ALSO APPLIES THIS DOCTRIME TO STATUTE OF FRAUDS PROVISONS NOT BASED ON THE SALE OF REAL PROPERTY.
