Statute of Frauds

Question 1

What is the statute of frauds?

Answer 1

Forbids the enforcement of a contract unless it is in a signed writing

Question 2

What are the six classes of contracts that fall within the statute of frauds?

Answer 2

Remember MYL LEGs

1. Marriage contracts
2. Contracts that can’t be performed within a year
3. Land contracts
4. Executor-administrator
5. Goods $500+
6. Suretyship

Question 3

What are the three statute of frauds exemptions for sale of goods contracts of $500 or more?

Answer 3

1. sale of custom goods i.e. “Dexter Rowell” t-shirts, seller has to make a substantial beginning in manufacturing or procured materials
2. non-injured party admits in court that the contract was made
3. if payment has already been received and accepted or if goods have already been

Question 4

what is the statute of frauds exemption for a suretyship contract?

Answer 4

A signed writing is not required it the promisor’s main purpose for entering the suretyis their own financial gain