Statute of Frauds Flashcards
What is the Number 1 rule of buying and selling property?
Trust no one!
What is equity?
Justice, doing what is right.
Specific performance is a type of equitable remedy
What is an Agreement of Sale?
Executory contract; purchasing over time (not paying all at once)
Compare with Sales Contract which is not for a length of time, but closes immediately upon full payment at once.
What is the Statute of Frauds?
designed to protect people from fraudulent contracts, primarily claims that there was an oral agreement to sell the person land.
• Certain types of contracts must be in writing, including any sale of land.
• Contract, or some memorandum or note thereof, must be in writing and signed by the party to be charged.
○ Can be a check, letter, escrow instructions, deed, pleadings, etc.
○ Must have the essential terms of the contract
Writing must have the essential elements of a contract. What are these?
the parties, description of the property, etc. (sale price not required)
The writing must also show that there was an intent to transfer the property (eg: not just a negotiation).
Must show there is no essential term left to negotiate between the parties in the writing.
What are the exceptions to the statute of frauds?
- Part performance
- Reliance - must be reasonable and foreseeable
- Judicial Admission
Hickey v. Green
Reliance:
Hickey sold his house in reliance on an oral promise with Green to purchase Green’s property. Green then attempted to sell to another party.
Court ordered specific performance of the oral contract to sell the property for reasons of equity, due to Hickey’s reliance on the contract (selling his own house).
• Exception to the Statute of Frauds
• Trial court had the option of looking to see if the Hickey’s could get out of the contract to sell their house, and then Green would be liable for damages instead of specific performance.
What is the Judicial Admission Exception?
Judicial Admission - exception, if you make an admission of fact to a court, then that could constitute an exception to the writing requirement of the statute of frauds.
• “any admission of a contract made in the course of judicial proceedings will render the statute of frauds inoperative.”
Timberlake
