Statute of Frauds Flashcards
What are the types of contracts that the Statute of Frauds requires writing for?
- Real property
- Executory contracts exceeding 1 year
- Debts of another person
- Payment from own funds
- Promise in consideration of marriage
- UCC - sale of goods in excess of $500 (or $5000 I guess??)
- Real property What is a deed?
Proof of ownership
-Requires formal documentation (documentation in a specific way)
-Property is exchanged from the current owner to the new owner
- Real property
What are the alternatives to ownership under the Statute of Frauds?
- Interest - a right to use the property
- Right of way - “license” to use a property for a definite amount of time
- Easement permission to use part of a property
-EX. right to use a shared driveway
- Executory bilateral contracts > 1 year
What does this actually mean?
Ensures that the original contract promises are met if the execution is greater than a year because “memory is a funny thing”
-Exception: in PA the standard is 3 years for leases on real property
- Responsibility for the debt of another person
How does this work?
A debt is being endorsed by another person
-Ex. a guarantor cosigning for a load
- Payment from own funds
Means what?
Often relates to corporate ownership, where an owner may have to sign as an owner and as an individual.
-Ex. A person does no become the executor of an estate until they have been designated and signed off. This often does not happen at the time of arrangements
-This person can sign as the executor but also must endorse as self because they are not yet considered the executor
- Promise in consideration of marriage
What are the two types?
- Prenuptial agreement - must have complete disclosure of assets
- Postnuptial agreement - often for tax purposes
-Brady bunch situation: estate will be divided to offspring of each party
- UCC sale in excess of $500
What’s all the confusion of the dollar amount
State statutes adopted currently are set at $500. There has been a revision that has been approved for $5000, but it has yet to be adopted by the states
- Memorandum (a memo)
What are the details of a memo being a valid contract?
- Has the required terms
- Signatures
-If both parties signed: good; enforceable
-If one party signs and the other does not: ok, but might only be enforceable on that party that signs if they do not perform
Exceptions:
-Performance - if the party that has not signed performs, the contract is enforceable (shows existence of contract)
-Judicial admissions - admission under oath that a contract existed
Can you have a contract that is oral?
Yes but it is not enforeable
What does “forever” mean in terms of life estates?
Manage property that is owned for an indeterminant amount of time. Until you die
