Statute Of Frauds

Question 1

True or False: Oral contracts are not enforceable

Answer 1

False. Oral contracts are otherwise enforceable, but certain contacts must be in writing

Question 2

Statute of Frauds

Answer 2

Certain contracts must be in writing

Question 3

Under the statute of frauds, what types of contacts must be in writing?

Answer 3

1) contracts for sale of lands
2) sale of goods > $500 (governed by UCC)
3) consideration of marriage
4) contracts not to be performed within 1 year from the time they are made
5) contracts for suretyship (assumption of debt)

Question 4

A lease/easement must be in writing if

Answer 4

It is for more than 1 year

Question 5

Exceptions to the statute of frauds

Answer 5

Possibility of completion within one year
Lifetime contracts
Full performance by one party

Question 6

There are two views on when a contract can terminate within one year, for statute of frauds purposes. What are they?

Answer 6

Majority: non-performance does not impact performance within one year, so within SoF

Minority: because contract is terminated within the year, outside SoF

Question 7

What is a confirmatory memo in relation to SoF?

Answer 7

If a contract is between merchants, if within a reasonable time a writing in confirmation of the contract and sufficient against sender is received and party receiving has reason to know of contents, this meets the writing requirement

Question 8

The writing must contain . . .

Answer 8

Essential (material) terms
Identify the parties to the contract
Description of subject matter
Terms and conditions of the agreements

Question 9

True of False: the signature requirement is strict

Answer 9

False. Signature is liberally construed. Letterheads and e-signatures count. Voicemails count

Question 10

Contracts removed from SoF

Answer 10

1) performance
2) equitable or promissory estoppel
3) judicial admission-party asserting defense admits to agreement

Question 11

What is the requirement, in a land sale contract, for performance to remove it from the SoF

Answer 11

1) payment, in whole or in part
2) buyer is in possession of the land
3) buyer has made valuable improvements to the land

Question 12

What is the requirement, in a sale of goods contract, to remove it from the SoF?

Answer 12

1) goods have been specifically manufactured OR
2) goods have either been paid for or accepted

If only partially paid for or accepted, only enforceable to that extent

Question 13

What is the effect of noncompliance with the Statute of Frauds

Answer 13

The contract is voidable but not void. If not raised as a defense, waived

Question 14

Remedies for Statue of Frauds

Answer 14

1) reasonable value of services rendered OR
2) restriction of the value of the benefit conferred