Statute of Frauds Flashcards
Generally, contracts do not need to be in writing. The exception is the contracts that fall under Statute of Frauds. What contracts fall under the Statute of Frauds?
Remember MYLEGS!! Marriage Over 1 Year Land Executorships Goods worth more than $500 Surety Agreements
Statute of Frauds
What are Executorships?
Administrator for a duty to his decedents
Statute of Frauds
What are Surety agreements?
A contract to answer for the debt of another.
The agreement must be between a third party and the creditor.
Statute of Frauds
Define: Novation
Does not count under a surety agreement; an agreement whereby a creditor releases the debtor, and accepts the obligation of a third party.
Statute of Frauds
Define the “Leading Object” or “Main Purpose” exception
The doctrine that if a promise to guarantee another’s debt is made primarily for the promisor’s own benefit, then the statute of frauds does not apply and the promise need not be in writing to be enforceable.
Simply put, when the co-signer benefits it does not need to be in writing. But when the debtor benefits, it does need to be in writing.
Statute of Frauds
What is the exception to the marriage contract provision?
In the case of an agreement which consists only of mutual promises of two persons to marry each other. So the engagement to be married does not have to be in writing to be binding.
Statute of Frauds
What is the exception to the requirement of Real Estate Contracts to be in writing?
Richard v. Richard Rule regarding Part Performance:
“A court generally will enforce an alleged oral contract pursuant to the doctrine of part performance only if a party can adequately demonstrate, in reliance on said agreement, POSSESSION of the property, IMPROVEMENTS thereon, or PAYMENT OF A SUBSTANTIAL PART of the purchase price.
Statute of Frauds
What type of contracts are exempt from the rule for “over a year?”
1) If there is even a little bit of a possibility that the contract can be completed in under a year than it will not need to be in writing.
2) Employment contracts for lifetime employment because they are uncertain and they may fall into the exception above.
Statute of Frauds
What is the exception to the rule for contracts that will go longer than a year?
Contracts of uncertain duration. If a project has a possibility of being finished in under a year then it does not need to be in writing. But if there is no possibility of it ending before a year, then it must be in writing.
Statute of Frauds
What are the exceptions to the rule that goods over 500 dollars must have a written contract?
1) Specially manufactured goods which were made just for a customer and would be useless to anyone else.
2) Admission by party that contract existed but it would be unenforceable under UCC 2-201
3) Payment has already been made.
Statute of Frauds
What does RS 132 say about several writings?
The memorandum may consist of several writings as long as one of the writings is signed and the writings in the circumstances clearly indicate that they relate to the same transaction.
Statute of Frauds
What does RS 135 requirements for who must sign a contract?
Where fewer than all parties to the contract, and the statute has not been satisfied, the contract is enforceable against the signers but not against the others.
The party who is going to be charged with the responsibility or liability of the contract is required to sign the contract.
Statute of Frauds
What counts as a signature?
This is very lenient. Any act that is intending to accept the terms and is presented will be counted as a signature.
Are all three (possession, improvements, partial payment) required to fulfill the exception to the real estate portion of the statute of frauds?
In some jurisdictions all 3 are required, in others they only require 1 depending on the circumstances. But the more they have, the better chance of winning.
Define: A writing under statute of frauds
Anything showing intent to be bound. From a real contract to a text message, to a post-it note.
