statute of frauds

Question 1

Statute of Fraud

Answer 1

a barrier that some contracts must meet in order to become real- legally binding.

goal of SOF is to prevent false assertions about a K that was never really created.

Question 2

Transactions covered by Statute of Frauds

Answer 2

M. SOUR

Marriage - Prenaps- made in the consideration of marriage

Suretyship - a contract promising to guarantee the debt of
another
- Main purpose exception- if the main purpose
in a agreeing to pay the debt of another is the
surety’s own economic advantage, then SOF
does not cover.

                   - if economic benefit goes to the surety then   
                    it's not in SOF

One-year rule - K that by its terms cannot be performed
w/in one year from its making
- there is no possible way the K could be
performed in 1 yr

UCC - goods K for $500 or more

Real Estate - Ks for sale of an interest in real property

Question 3

SOF REQS

Answer 3

must have either

• signed writing by Def or
• some performance on the purported deal

Question 4

SOF Service Ks

Answer 4

Common Law Reqs - 2 things in order to satisfy SOF

Either
1. Full performance of service is required by either side in
order to satisfy SOF.

Real Estate Exception –> Part performance if 2/3 elements

           i. possession 
          ii. payment
          iii. improvements to the land

2. A writing signed by the party against whom the K’s
   asserted and the the writing must cover key fundamental
   facts like:
   i. indicate that the K has been made
   ii. identify the parties AND
   iii. contain the essential elements of the deal

• don’t need both signatures
• doesn’t have to be formal

Question 5

SOF Goods Ks

Answer 5

WRITING - a signed writing will satisfy if it mentions quantity…does not need to mention price.

PART PERFORMANCE - only for quantity delivered or accepted

  Exception= custom-made goods/specially manufactured
       - the maker can satisfy SOF as soon as it makes a  
         substantial beginning towards manufacturing of  
         goods. 

OTHER WAYS UCC ALLOWS SOF satisfaction
- Judicial admission - statement in pleadings or testimony

• failure to object - to confirming memo within 10 days only if the parties are merchants
• agency law= equal dignity rule
  need a signed writing to authorize an agent to form a K
  that is in SOF.

Question 6

Modification in the SOF?

Answer 6

Allowed if the new deal/modification will be in the SOF world. If so then SOF must be satisfied. If no, then SOF is not required even though the initial deal was in SOF world.