Statute of Frauds

Question 1

When does the SOF dictate that a writing required?

Answer 1

1. Transfer of an interest in real property
2. Performance cannot be completed with 1 year
3. Sale of goods for $500 or more (ART 2)
4. Lease of goods for $1000 or more (NY only) (ART2A)
5. Suretyship (promise to answer for debt of another)
6. Contract modification if contract AS MODIFIED is w/in SoF
7. Misc. NY provisions (promise to pay discharged debt, agreement to pay finders fee, broker’s commission)

Question 2

Explain ‘if full performance cannot be completed within 1 year’ in more detail

Answer 2

If full performance THEORETICALLY possible, no writing required (specific task never within SoF)
Clock starts at agreement, not performance
NY: lifetime agreement w/in SoF (MBE: could have died)

Question 3

Explain ‘lease of goods for $1,000 or more’ in more details

Answer 3

Art. 2A, NY only

$1000 is TOTAL value of lease, not monthly/weekly payment (eg, $300/mo for 1 year is $3600 and w/in SoF in NY)

Question 4

what constitutes a satisfactory writing?

Answer 4

Depends on the nature of the contract

Question 5

satisfactory writing for sale of goods?

Answer 5

Art. 2: must contain quantity term and be signed by party to be charged with breach of contract

Question 6

satisfactory writing for lease of goods?

Answer 6

Art. 2A (NY only): must state it’s a lease; include quantity, duration, and rental payments; and be signed by defendant

Question 7

contract not sale or lease?

Answer 7

Must contain all material terms and be signed by defendant

Question 8

What is the real property exception? Being carved out because there is less chance of fraud.

Answer 8

1. Leases of one year or less
2. Part performance (needs 2 of 3): buyer in possession of property; buyer made some payment; buyer made improvements to property

Question 9

What is the one-year prong exception? Being carved out because there is less chance of fraud.

Answer 9

Full performance negates need for writing

Part performance insufficient; can recover only in quasi-contract

Question 10

What is sale of goods >$500 exception? Being carved out because there is less chance of fraud.

Answer 10

1. Goods accepted or paid for by buyer (only as to those goods)
2. Custom-made goods: if seller has made substantial start and not suitable for sale in ordinary course
3. Judicial admission: in deposition, testimony, etc.
4. Merchants’ confirmatory memo: can use own signed writing against other if: (a) both merchants, (b) writing claims prior oral agreement, (c) writing signed with quantity, and (d) no written objection w/in 10 days

Question 11

What is the suretyship exception? Being carved out because there is less chance of fraud.

Answer 11

“Main purpose” exception: MBE only, if surety’s main purpose is to benefit promisor, no writing required
Eg, A buys paint for B’s house, B suretyships purchase of paint