Statute of Frauds

Question 1

If a contract is governed by the Statute of Frauds, then what is required?

Answer 1

1. The contract must be evidenced by a writing
2. Signed by party against whom enforcement is sought.

Question 2

Who has a Statute of Frauds defense?

Answer 2

A party who does not sign a contract that is governed by the statute of frauds.

Question 3

What are the steps in analyzing Statute of Frauds issues?

Answer 3

Ask:

1. Does statute of frauds apply
2. Is the statute of frauds satisfied
3. Is alternative enforcement available

Question 4

List the 6 Statute of Frauds Categories.

Answer 4

1. Marriage
2. Contracts Not to Be Performed within a Year
3. Land Interest
4. Executor (contracts for executor or administrator to answer for the duty of decedent)
5. Guarantee or Suretyship (co-signing someone’s debt)
6. Contracts for the sale of goods at a total price > $500.

Question 5

The year at issue in contracts lasting greater than a year is measured from?

Answer 5

From the date of making the contract.

Question 6

What to ask when examining a contract under the one-year statute of frauds?

Answer 6

Will the performance conclude within a year of making the contract?

Question 7

If it is possible that an oral contract could be performed within the year of making, what is the validity of the contract if it takes longer?

Answer 7

It is not governed by statute of frauds regardless of how long it takes to perform.

Question 8

Is a lifetime or permanent contract of employment subject to the statute of frauds?

Answer 8

Not governed by the one year provision because death is possible within a year.

Question 9

What type of land sale is governed by the statute of frauds?

Answer 9

The contract for a future sale of land is governed by land provision and requires a signed writing.

Question 10

Is present conveyance of land promised for money governed by the statute of frauds?

Answer 10

No.

Question 11

Statute of frauds covers what kind of land interest?

Answer 11

Any land interest.

Question 12

What are the requirements for guaranty agreements: a contract that promises to answer for a debt of a third party ?

Answer 12

It needs to be in writing and satisfy the statute of frauds.

Question 13

What the exceptions to the guaranty SOF requirements?

Answer 13

1. When creditor discharges the original debtor on the faith that he can collect
2. Main purpose of the guarantor is to protect his own economic interest.

Question 14

What is needed for a writing to satisfy SOF?

Answer 14

1. Identity of the parties to the contract
2. Nature and subject matter of the contract
3. Essential terms of agreement: price, date, performance.

Question 15

What kind of a writing satisfies SOF?

Answer 15

Any memorandum with the signature of a party.

Question 16

What is needed for a signature for SOF?

Answer 16

Any symbol used with intention to authenticate the writing.

Question 17

What are the five essential terms of a SOF agreement that must be in the writing?

Answer 17

1. Parties
2. Subject matter
3. Price
4. Date
5. Performance

Question 18

What is the required description for a land sale contract?

Answer 18

1. An address

or

2. Metes & bounds

Question 19

How do you tack together documents for SOF?

Answer 19

1. If all documents are signed, or if a signed document incorporates unsigned documents by reference: then, statute of frauds is satisfied

or

2. There is at least one signed writing unambiguously creating a contract between parties and:

A. Documents clearly refer to the same subject matter

B. Clear and convincing evidence of acquiescence to the unsigned documents by the party resisting enforcement.

Question 20

When can the SOF in land contracts can be satisfied by part performance?

Answer 20

Part performance requires a showing of any combination 2 or all three, of the following:

1. Possession
2. Partial Payment or full payment of purchase price
3. Making substantial improvements to the property.

Question 21

When can the SOF in contract > 1 year can be satisfied by part performance?

Answer 21

When the contract is fully performed.

Question 22

If SOF is not satisfied, what remedies are available to the aggrieved party?

Answer 22

1. Restitution: The aggrieved party may recover the value of the benefits conferred
2. Promissory Estoppel: may be available for detrimental reliance (must have strong evidence of reliance).

Question 23

What are the 5 ways to satisfy the UCC statute of frauds?

Answer 23

1. A signed writing
2. Merchants confirmation
3. In court admission
4. Partial performance

And

5. Specially Manufactured goods

Question 24

What required term is needed for UCC SOF contract?

Answer 24

A quantity term.

Question 25

When will a writing satisfy the UCC SOF?

Answer 25

1. It is signed by party against whom enforcement is sought

And

2. Indicates a contract for sale has been made between the two parties.

Question 26

What are the exceptions for a quantity term requirement?

Answer 26

1. Where there is language providing a basis for measuring quantity
2. Output or requirements contracts.

Question 27

What is a merchant’s confirmation?

Answer 27

When two merchants enter an oral agreement and one of them sends the other a written confirmation of the agreement.

Question 28

What are the requirements for a valid merchant’s confirmation?

Answer 28

1. It has to be signed and contain a quantity term
2. The writing is in confirmation of the contract
3. Confirmation must be sent within a reasonable time of formation.
4. Confirmation must be based upon a real agreement and actually received

And

5. Satisfied against recipient merchant if not objected to within 10 days.

Question 29

How long does recipient merchant have to object to a merchant’s confirmation?

Answer 29

10 days.

Question 30

How can an in court admission satisfy the UCC SOF?

Answer 30

Party admits in pleading, testimony, or otherwise in court that a contract was made. The contract is only enforceable: up to the quantity admitted.

Question 31

When can partial performance satisfy the UCC SOF?

Answer 31

There is no writing and

1. Payment from buyer and seller accepts

Or

2. Seller sends goods and buyer accepts.

Question 32

When can partial performance satisfy the UCC SOF:

If involving divisible goods?

If involving indivisible goods?

Answer 32

Divisible = only up to the quantity actually delivered or paid for. Indivisible = partial payment renders the contract fully enforceable.

Question 33

When can a specially manufactured goods satisfy the UCC SOF?

Answer 33

1. The goods are to be specially manufactured for the buyer
2. The goods are not suitable for sale to others in the ordinary course of seller’s business
3. Seller has substantially begun to manufacture, or made commitments to procure, the goods
4. The actions undertaken to begin to manufacture or procure occurred under circumstances which reasonably indicate that the goods are for the buyer

And

5. The actions undertaken to begin to manufacture or procure occurred before seller received notice of buyer’s revocation.

Question 34

A SOF defense only has what effect?

Answer 34

Defends against the enforcement of the contract against the non-signing party.