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

And

2. The contract must be signed by the party against whom enforcement is sought
   * More Info:* SOF

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.

More Info: Statute of Frauds Defense

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
* More Info:* SOF Analysis

Question 4

List the 6 catagories of contracts governed by the Statute of Frauds.

Answer 4

1) Marriage
2) Contracts not to be performed within a year
3) Land interest
4) Executor (contracts for an executor or administrator to answer for the duty of a decedent)
5) Guarantee or suretyship (co-signing on someone’s debt)
6) Contracts for the sale of goods at a total price greater than $500

Question 5

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

Answer 5

From the date of making the contract, not the date of beginning performance

Question 6

What must be asked when examining a contract under the one-year catagory of the 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 a year of making the contract, what is the validity of the contract if it ends up taking longer?

Answer 7

It is not governed by the Statute of Frauds regardless of how long it actually takes to perform

Question 8

Is a lifetime or permanent contract of employment subject to the Statute of Frauds?

Answer 8

These are not governed by the one year provision because death is possible within each year.

Question 9

What type of land sales are governed by the Statute of Frauds?

Answer 9

Contracts for the future sale of land are governed by the land provision and require a signed writing.

More Info: SOF - Land Sale

Question 10

Is the present conveyance of land promised for money governed by the Statute of Frauds?

Answer 10

No

Question 11

The Statute of Frauds covers what kinds of land interests?

Answer 11

Any land interest

More Info: SOF- Land

Question 12

What are the requirements for guaranty agreements, or contracts that promises to answer for a debt of a third party?

Answer 12

They needs to be in writing and satisfy the Statute of Frauds.

More Info: Guaranty SOF Exceptions

Question 13

What are the exceptions to the guaranty Statute of Frauds requirements?

Answer 13

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

Question 14

What is needed to be included in a writing to satisfy the Statute of Frauds?

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 writings satisfy the Statute of Frauds?

Answer 15

Any memorandum with the signature of a party

Question 16

What is needed for a signature to satisfy the Statute of Frauds?

Answer 16

Any symbol used with the intention to authenticate the writing.

Question 17

What are the five essential terms of a Statute of Frauds 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 land description for a land sale contract under the Statute of Frauds?

Answer 18

1. An address

Or

2. Metes & bounds
   * More Info:* SOF - Land Sale Contract

Question 19

How do you tack together documents for the Statute of Frauds?

Answer 19

1) If all documents are signed, or if a signed document incorporates unsigned documents by reference, then, the Statute of Frauds is satisfied

Or

2) If there is at least one signed writing unambiguously creating a contract between parties and:

A. The documents clearly refer to the same subject matter

B. There is clear and convincing evidence of acquiescence to the unsigned documents by the party resisting enforcement

More Info: SOF - Tacking

Question 20

When can the Statute of Frauds in land sale contracts can be satisfied by part performance?

Answer 20

Part performance requires a showing of any combination of two or more of the following:

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

Question 21

When can the Statute of Frauds in contracts lasting more than one year be satisfied by part performance?

Answer 21

When the contract is fully performed

Question 22

If Statute of Frauds is not satisfied, then 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: This 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 a UCC Statute of Frauds contract?

Answer 24

A quantity term

Question 25

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

Answer 25

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 26

When will a writing satisfy the UCC Statute of Frauds?

Answer 26

1) It is signed by the party against whom enforcement is sought

And

2) It indicates a contract for sale has been made between the two parties

Question 27

What are the exceptions for a quantity term requirement?

Answer 27

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

Question 28

What is a merchant’s confirmation?

Answer 28

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

Question 29

How long does a 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 Statute of Frauds?

Answer 30

A party admits in pleadings, testimony, or otherwise in court that a contract was made. The contract is only enforceable up to the quantity admitted in court.

Question 31

When can partial performance satisfy the UCC Statute of Fruads?

Answer 31

There is no writing and

1. Payment from the buyer is made and the seller accepts

Or

2. The seller sends goods and the buyer accepts
   * More Info:* UCC Partial Performance

Question 32

When can partial performance satisfy the UCC Statute of Frauds if the contract involves divisible goods or if the contract involves indivisible goods?

Answer 32

Divisible goods contracts will only be satisfied by partial performance up to the quantity actually delivered or paid for. Indivisible goods contracts will be fully enforceable if partial payment has been made.

Question 33

When can specially manufactured goods satisfy the UCC Statute of Frauds?

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 the seller’s business
3) The seller has substantially begun to manufacture, or made commitments to procure, the goods
4) The actions undertaken to begin to manufacture or procure the goods 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 the seller received notice of the buyer’s revocation

Question 34

A Statute of Frauds defense only has what effect?

Answer 34

It defends against the enforcement of the contract against the non-signing party