Statute of Frauds

Question 1

Statute of Frauds

Answer 1

To be enforceable, certain agreements must be (i) in writing, (ii) signed by the party being sued., and (iii) state essential terms of the contract with reasonable certainty

M: Marriage as consideration for promise
Y: Promises that can’t be completed within one year
L: Agreement creating interest in land (leases, easements, mortgages, fixtures)
* Contract to buy and sell real estate and divide the profits does NOT create an interest in land

E: Executor promises to personally pay for estate’s debts
G: Sale of goods over $500 (quantity required)
* see exceptions below
S: Promise of suretyship

Sale of Goods SOF Exceptions
* Specially manufactured goods
* Performance (goods accepted or paid for)
* Admission in court
* Confirmatory Memo

Land: Contracts to build building does NOT create interest in land
Suretyship: If primary purpose is to serve own pecuniary interest, SOF requirement doesn’t apply; oral agreement ok

Question 2

SOF requirement for land sale contract

Answer 2

Essential Terms
* Description of land
* Parties
* Price

AND signed by party to be sued, in writing

Question 3

SOF Exceptions

Answer 3

Oral agreement enforceable (SOF doesn’t apply) when:
* Full performance of contract that can’t be performed within one year (but NOT part performance)
* **Full performance **by seller of real estate
* Part performance by buyer of real estate of 2 out of 3: (a) full or partial payment, (b) possession, or (c) valuable improvements

Sale of Goods Exceptions
* Specially Manufactured Goods: specially made for buyer and can’t sell to others in seller’s ordinary course of business and seller’s made substantial beginning in manufacturing products
* Merchant’s Confirmatory Memo
* Payment: If goods paid for or accepted (if partially, only to extent of partial payment or acceptance)
* Modification: Contract modified to be less than $500

Question 4

SOF Defenses

Answer 4

Estoppel: D’s promise foreseeably induces P to rely on oral agreement, so court uses promissory estoppel to remove contract from SOF to prevent injustice

Equitable Estoppel: For fraudulent misrepresentation (D made fraudulent misrepresentation to P and P justifiably relied on it)

Stipulation: Party admits in court that contract existed

Question 5

Merchant’s Confirmatory Memo

Answer 5

If merchants make oral agreement and after, one merchant sends signed written confirmation of agreement, this satisfies SOF if:
(i) other merchant doesn’t object within 10 days