Statute of Frauds

Question 1

Suretyship, Assumption, SoF

What does the SoF apply to?

Answer 1

1. Marriage- a contract made in consideration of marriage (like a prenup)
2. Suretyship–a contract promising to answer for the debt of another
3. One year–a K that by its terms cannot be performed within one year from its making (no possible way it can be performed in a year).
4. UCC–goods Ks for a price of $500 or more
5. Real property–a K for the sale of an interest in real property

M. SOUR

Question 2

What is the main-purpose exception?

Answer 2

If the main purpose in agreeming to pay the debt of another is for the surety’s own economic advantage, then we are not in SOF world.

Question 3

SOF

Two main ways to satisfy SOF?

Answer 3

1. Full performace (either party)
2. signed writing

Exact requirements differ by universe

Question 4

SOF

SOF for UCC Goods 500 and over? (5)

Answer 4

1. A writing signed by the party against whom the K is asserted. But of course no need to mention price. Must mention quantity. Only enforceable for the quantity mentioned.
2. Part performance satisfies the SOF but only for the quantity delivered and accepted.
3. Custom made (or specifically manufactured) goods are exempted from the SOF. The maker can satisfy SOF as soon as it makes a substantial beginning toward manufacturing of the goods.
4. A judical admission. Includes a statement in a pleading or during testimony.
5. The failure to object to a confirming memo within 10 days will satisfy the SOF BUT only if both parties are merchants

Question 5

Suppose you have a deal that is in SOF world and the SOF requirements are met. Now the parties want to modify that deal. Must the modification also satisfy the SOF requirements?

Answer 5

Not automatically. Ask whether the deal with the alleged modification would be in SOF world.
* If yes, then must meet SOF requirements for the modification
* If no, there is no SOF requirement, even though the initial deal was in the SOF world.