Statute of Frauds

Question 1

What is the Statute of Frauds?

Answer 1

The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed by the party against whom enforcement is sought to be enforceable.

Question 2

What does the Statute of Frauds prevent?

Answer 2

It prevents fraudulent claims and provides evidence of the agreement.

Question 3

What happens if a contract fails to comply with the Statute of Frauds?

Answer 3

Failure to comply renders a contract unenforceable.

Question 4

What are the classes of contracts that fall under the Statute of Frauds?

Answer 4

1. Marriage contracts, 2. Contracts that can’t be performed within 1 year, 3. Land contracts, 4. Executor-administrator contracts, 5. Sale of goods contracts $500+, 6. Suretyship.

Question 5

What are marriage contracts?

Answer 5

Agreements made in consideration of marriage, where one party’s promise to marry serves as consideration for the other party’s promise.

Question 6

Do simple mutual promises to marry fall under the Statute of Frauds?

Answer 6

No, simple mutual promises to marry without additional conditions do not fall within the statute of frauds.

Question 7

What is the One-Year Provision?

Answer 7

Contracts that cannot be fully performed within one year from the date of formation.

Question 8

What is an important consideration for the One-Year Provision?

Answer 8

The impossibility of performance within a year must be evident at the time of contract formation.

Question 9

Do lifetime agreements fall under the One-Year Provision?

Answer 9

No. Performance of a lifetime agreement could be completed within one-year because it is not impossible for someone do die within a year.

Question 10

Can parties extend an employment contract orally?

Answer 10

Parties can bind themselves to a term in the written agreement with an oral renewal, but not for more than a year.

Question 11

Are contracts with termination clauses within the Statute of Frauds?

Answer 11

No, if one of the parties can terminate the contract within one year of its making.

Question 12

What are land contracts?

Answer 12

Agreements involving the transfer of any interest in land, including leases and mortgages.

Question 13

What defines interest in land contracts?

Answer 13

Restatement 127 defines interest as ‘any right, privilege, power or immunity, or combination thereof.’

Question 14

What are examples of land contracts under the Statute of Frauds?

Answer 14

Contracts to transfer a right of way, mortgages, leases, and subleases.

Question 15

What are exceptions to the land provision?

Answer 15

Short-term leases (typically less than one year) and a lender selling a mortgage to another.

Question 16

What are executor-administrator contracts?

Answer 16

Promises by an executor or administrator of a deceased person’s estate to personally answer for a debt or duty of the deceased.

Question 17

What constitutes goods under the Statute of Frauds?

Answer 17

Contracts for the sale of goods valued at $500 or more.

Question 18

What are exceptions to the ‘Goods’ provision?

Answer 18

Specially manufactured goods, admission of the contract’s existence in court, payment having been made and accepted, or goods received and accepted.

Question 19

What are suretyship contracts?

Answer 19

Agreements where a person (the surety or guarantor) promises to answer for the debt or obligation of another person.

Question 20

What are exceptions to the suretyship provision?

Answer 20

The main purpose rule, a third-party taking on a debtor’s obligation, or a third-party entering a contract with the obligee.

Question 21

What is the main purpose rule?

Answer 21

Provides an exception if the surety’s primary motivation is to further their own economic advantage.

Question 22

What must a writing satisfy to meet the Statute of Frauds?

Answer 22

It must identify the parties, show that a contract was made, set forth the nature of the contract, and state the essential terms.

Question 23

What issues arise with the form of writing concerning the Statute of Frauds?

Answer 23

As long as the evidence shows that the parties made a contract and provides sufficient detail, it counts.

Question 24

Can multiple documents fulfill the Statute of Frauds?

Answer 24

Yes, if they refer to the same subject matter and at least one is signed by the party to be charged.