Statute of Frauds

Question 1

When a Writing is Required

Answer 1

• Most oral Ks are enforceable

Within SOF:

• Interest in Real Property
• Performance CANNOT Be Completed Within 1 Year (*in theory, any TASK can be completed within 1 year)
• Sale of Goods for $500 or more
• Suretyship (a promise to “answer for” the debt of another– a backup)
• K Modification (must be in writing only if K AS MODIFIED is w/in SOF)
• TX ONLY (Art. 2A) Lease of Goods for $1,000 or more

Question 2

Satisfactory Writing

Answer 2

Sale of Goods (Art. 2) = must contain a quantity AND be signed by the D

Other Ks = must have ALL material terms AND be signed by D

Question 3

Exceptions to SOF

Answer 3

Real Property

• Leases of 1 year or less
• Part Performance: 2 of 3 needed (1) some payment (2) possession (3) improvements

1-Year Prong: FULL Performance
- if Big Bird works for 2 years for Sesame Street (under an oral K for 2 years), Sesame Street has to pay because he’s fully performed

Sale of Goods for $500 or More (Art. 2)

• Goods accepted or paid for by buyer
• Custom-made Goods (substantial beginning; not suitable for sale to anyone besides buyer)
• Merchant’s Confirmatory Memo: 1 party can use ITS OWN signed writing to satisfy SOF against the other party if (1) both are merchants; (2) writing claims oral agreement and has a quantity; and (3) no written objection w/in 10 days

Suretyship “Main Purpose” Exception
- I buy paint on credit from Lowe’s to paint Brittany’s house. Brittany orally promises to pay Lowe’s for the paint if I don’t pay. Lowe’s can enforce Brittany’s oral promise against her because purpose of promise was for her benefit