Statute of Frauds

Question 1

What does the statute of frauds require?

Answer 1

Contracts that fall within the Statute of Frauds are unenforceable unless evidenced by a WRITING. The writing (any memorandum, format not specific) must:
-> be in writing
-> be signed by the party to be charged (i.e., any authentication that identifies the party)
AND
-> contain the essential elements of the deal

Question 2

What are the types of Ks within the SoF?

Hint: there are 5 categories.

Answer 2

Marriage - any agreement in consideration of marriage

Suretyship - K to answer for debt/duty of another

One year - K that cannot be performed within one year after K is made

UCC - when K for the sale of goods is at least $500

Real property K - applies to Ks providing for subsequent conveyances of an interest in property (subsequent acts showing existence of K may also make oral Ks for transfers of interest enforceable)

Question 3

What must the memo include when dealing with a UCC K that falls under the statute of frauds?

Answer 3

Memo must
-> indicate that K has been made,
-> identify parties,
-> contain a quantity term,
AND
-> be signed by the party to be charged

Question 4

When is a K, under the UCC, not required to follow the statute of frauds rules despite being over $500?

Answer 4

-> Specially manufacturer goods
-> Payment and acceptance by seller (so already considered to be K)
-> Receipt and acceptance by buyer (so already considered to be K)
OR
-> Failure to object to memo within 10 days of receipt (WHEN both parties are merchants AND receiving merchant has reason to know of its contents)

Question 5

What are the exceptions where SoF doesn’t need to apply?

Answer 5

Promissory estoppel
-> A promise that the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and that does induce the action or forbearance is enforceable notwithstanding the Statute of Frauds if injustice can be avoided only by enforcement of the promise.

Judicial admissions
-> A promise is enforceable against a party to the extent admitted by the party through discovery admissions or by testimony at trial.