Statute of Frauds Flashcards
What contracts generally fall under the Statute of Frauds?
Contracts involving interests in land.
Contracts that cannot by their terms be performed within one year from the day after the date of formation.
Collateral, or secondary, contracts, such as promises to answer for the debt or duty of another.
Promises made in consideration of marriage.
Under the Uniform Commercial Code, contracts for the sale of goods priced at $500 or more.
What other interests in land are within the statute of frauds?
The Statute of Frauds also requires written evidence of contracts for the transfer of other interests in land, such as mortgage agreements and leases. Similarly, an agreement that includes an option to purchase real property must be in writing for the option to be enforced.
What is the One Year Rule?
Contracts that cannot, by their own terms, be performed within one year from the day after the contract is formed must be in writing to be enforceable. The reason for this rule is that the parties’ memory of their contract’s terms is not likely to be reliable for longer than a year.
What are collateral promises?
A secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.
What is a primary obligation, what is a secondary obligation?
A promise to pay another person’s debt (or other obligation) that is not conditioned on the person’s failure to pay (or perform) is a primary obligation. A promise to pay another’s debt only if that party fails to pay is a secondary obligation. A contract in which a party assumes a primary obligation normally does not need to be in writing to be enforceable, whereas a contract assuming a secondary obligation does.
What is an exception to the need of having a collateral promise in writing if it is a secondary obligation?
An oral promise to answer for the debt of another is covered by the Statute of Frauds unless the guarantor’s purpose in accepting secondary liability is to secure a personal benefit. Under the “main purpose” rule, this type of contract need not be in writing.The assumption is that a court can infer from the circumstances of a case whether a “leading objective” of the promisor was to secure a personal benefit.
What are exceptions to the statute of frauds?
Partial performance- once a performance has been made which cannot be undone and a rescission implausible, an oral agreement may be followed word for word even though it wasnt written. In some cases, mere reliance may suffice.
PWhat makes an exception to the UCC rule of Statute of Frauds?
Under the UCC, an oral contract for goods priced at $500 or more is enforceable to the extent that a seller accepts payment or a buyer accepts delivery of the goods.
In an argument of Part Performance in the sale of Real Estate, what are the two things necessary to use such an argument?
- Possession
- Substantial improvements (spending)
