Statute of Frauds

Question 1

Statute of Frauds requires a written memorandum of the following types of agreements:

Answer 1

1) for the sale of an interest in real estate (Lease if greater for one year)
2) Agreements which cannot be fully performed within one year.
3) In which one person promises to answer for the debt or default of another.
4) . Made in Consideration of Marriage.
5) Executor or administrator personally assuming debt of estate

Question 2

UCC Requirements

Answer 2

1) Contract for the sale of goods ($500 and more)

2) Signed by the party against whom enforcement is sought.

Question 3

Surety

Answer 3

One agrees to guarantee another’s debt or perform another’s obligation. (Cosigning / Bonding another’s performance)

Question 4

Guarantor

Answer 4

Give security for a debt.

Guarantor liable in the event of default.

Question 5

Agreements which cannot be fully performed within one year.

Answer 5

• If performance might be CONCEIVABLY COMPLETED within one year, the statute of Frauds does not apply
• NO WRITING REQUIRED.
• annuity contract sold to a 70 year old man in good health. (He may conceivably die next month, and the payments would end).

Question 6

Made in Consideration of Marriage.

Answer 6

“CONSIDERATION” is promise to marry another.

Not between the couple, but between a party to the marriage and a third party

Question 7

Meaning of writings and sign

Answer 7

Any mark stamp, symbol, adopted for the intention of authentication.

Question 8

Part Performance (land sale contract)

Answer 8

• Certain forms of part performance allow buyers to enforce the contract against the seller.
  e. g. Buyer who pays full price may be able to specific performance. (equitable remedy, not damages).
  e. g. Buyer Occupies the premises, makes improvements.

Question 9

Performance and the One Year Provision

Answer 9

Two parties form a contract that cannot be completed in ONE YEAR (Under the Statute of Frauds), and One Person FULLY PERFORMES = Enforceable by either party.

Question 10

UCC Exceptions to the Statute of Frauds

Making it Enforceable

Answer 10

Writing Unnecessary:
1) Contract Calls for Specially Manufactured Goods that:
a) are not suitable for sale to others, and
b) the seller has begun to produce or acquire the goods.
BASICALLY PROMISSORY ESTOPPEL
1) RELIANCE (Production of goods or procurement begun)
2) DETRIMENT (Goods are not sellable to others because they are unique.

Question 11

No writing, but payment accepted or delivery received

Answer 11

= either party may enforce.

Question 12

Having Two Separate “writings” about a single transaction in the sale of land

Answer 12

• Two writings will satisfy the statute of frauds if one contains a “signature” and either:
  1) both docs must relate to the same subject matter and one must be signed, or
  2) Connection between signed and unsigned documents must be apparent on face of docs. (unsigned must clearly relate to signed doc).

Question 13

Exceptions to the Application of the

STATUTE OF FRAUDS

Answer 13

WHEN PLAINTIFF DETRIMENTALLY RELIES ON DEFENDANT’s MISREPRESENTATION THAT:

1) A writing will be produced, or
2) A writing Exists that satisfies the SOF.

Question 14

PART PERFORMANCE EXCEPTION TO STATUTE OF FRAUDS

Answer 14

Where Partial Performance is UNEQUIVOCALLY referable to an AGREEMENT (ordinarily covered by the Statute of Frauds)
Performance must lead a reasonable person to conclude that a contract exists:
1) TAKING POSSESSION
2) MAKING IMPROVEMENTS
- Sufficient Part Performance to show that Sellers entered a Contract.

Question 15

Essential Terms

Answer 15

1) Parties
2) Price
3) Description
4) Time Frame for performance