LAW CHAPTER 15

prenuptial agreement

An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.

2. In response to Parker's suit, Williams filed a counterclaim, seeking unpaid attorneys' fees relating to the suit that Williams field against Shelborne on Parker's behalf. The court ruled against Williams on this claim. He appealed to the Alabama Supreme Court but failed to supply a transcript of the trail on his counterclaim, as it was his duty to do. Is the appellate court likely to rule in his favor? Why or why not?

The appellate court will likely agree with the lower court's decision because Williams failed to supply sufficient evidence to change the lower court's judgement. Therefore, the lower court's evidence that based their decision would be sufficient and the decision would be affirmed.

2. The contract calls for Benson to be employed for nine months, with performance of services to begin on September 1.

The contact does not fall under the Statute of Frauds and there does not need to be a written agreement. The contract calls for Benson to employed for nine months and the Statute of Frauds states that a written contract is required if the contract cannot be performed within one year from the day after the contract is formed.

15-1: The One-Year Rule. On May 1, by telephone, Yu offers to hire Benson to perform personal services. On May 5, Benson returns Yu's call and accepts the offer. Discuss fully whether this contract falls under the Statute of Frauds in the following circumstances:1. The contract calls for Benson to be employed for one year, with the right to begin performance immediately.

The contract does fall under the Statute of Frauds and there needs to be a written agreement. The contract calls for Benson to be employed for one year and the Statute of Frauds states that a written contract is required if the contract cannot be performed within one year from the day after the contract is formed.

3. The contract calls for Benson to submit a written research report, with a deadline of two years for submission.

The contract does fall under the Statute of Frauds and there needs to be a written agreement. The contract calls for Benson to submit a written research report in two years, and this task cannot be completed within one year from the day after the contract is formed.

15-6: The Parol Evidence Rule. Rimma Vaks and her husband, Steven Mangano, executed a written contract with Denise Ryan and Ryan Auction Co. to auction their furnishings. The six-page contract provided a detailed summary of the parties' agreement. It addressed the items to be auctioned, how reserve prices would be determined, and the amount of Ryan's commission. When a dispute arose between the parties, Vaks and Mangano sued Ryan for breach of contract. Vaks and Mangano asserted that, before they executed the contract, Ryan had made various oral representations that were inconsistent with the terms of their written agreement. Assuming that their written contract was valid, can Vaks and Mangano recover for breach of an oral contract? Why or why not?

There is a clear, written contract in this case that has a detailed summary of the parties' agreement. The court would find that the written contract represents the complete and final statement of the parties' agreement. Therefore, the parol evidence rule would not be allowed to be presented in court. The Vaks and Mangano could not recover for a breach of an oral contract because of this rule.

15-2: Statute of Frauds. Gemma promises a local hardware store that she will pay for a lawn mower that her brother is purchasing on credit if the brother fails to pay the debt. Must this promise be in writing to be enforceable? Why or why not?

This collateral promise needs to be in writing to be enforceable. In this case, Gemma, the guarantor, states that she will be responsible to pay for the lawn mower only if her brother, the primary party, does not perform his side of the promise. However, if this scenario were different and Gemma was accepting secondary liability of the loan for her own benefit (e.g. Gemma's brother intends to buy the lawn mower for her), the promise does not need to be in writing to be enforceable.

1. Parker filed a suit in an Alabama state court against Williams, alleging, among other things, breach of contract. Parker offered as evidence a tape recording of a phone conversation in which Williams guaranteed Shelborne's loan. Is the court likely to rule in Parker's favor on the contract claim? Why or why not?

Under the Statues of Fraud there are requirements that certain types of contracts be in writing so they can be enforceable by law. If Parker was to try to file a suit against Williams using the tape recording as evidence, the court would not rule in Parker's favor. The court would not allow the tape recording to be used as evidence because a guarantee contract must always be in writing under the Statues of Fraud. It doesn't matter how convincing the oral evidence may be, it cannot be accepted.

15-5. Statute of Frauds. Newmark & Co. Real Estate, Inc., contracted 2615 East 17 Street Realty, LLC, to lease certain real property on behalf of a client. Newmark e-mailed the landlord a separate agreement for the payment of Newmark's commission. The landlord e-mailed it back with a separate demand to pay the commission in installments. Newmark revised the agreement and e-mailed a final copy to the landlord. Do the parties have an agreement that qualifies as a writing under the Statute of Frauds? Explain.

Yes, the parties have an agreement that qualifies as writing under the Statute of Frauds. The email constitutes writing because it has all the essential terms in writing and satisfies all the requirements of writing under the Statute of Fraud. A court would most likely order the landlord to pay the commission.

15-3: The Parol Evidence Rule. Evangel Temple Assembly of God leased a facility from Wood Care Centers, Inc., to house evacuees who had lost their homes in a hurricane. The lease stated that Evangel could end it at any time by giving notice and paying 10 percent of the rent that would otherwise be paid over the rest of the term. The lease also stated that if the facility did not retain its tax exemption—which was granted to it on Evangel's behalf as a church—Evangel could end the lease without making the 10 percent payment. Is parol evidence admissible to interpret this lease? Why or why not?

Based on the parol evidence rule, if the court finds a written contract that represents the complete and final statement of the parties' agreement, then it will not allow either party to present parol evidence. Thus based on this rule,parol evidence should not be accepted. The written contract could be interpreted at its face. The contract could be resolved without the parol evidence because Evangel had the right to terminate without payment.

Parol Evidence Rule:

A rule of contracts under which a court will not receive into evidence prior or contemporaneous external agreements that contradict the terms of the parties' written contract.

Collateral Promise:

A secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable.

Statute of Frauds

A state statute that requires certain types of contracts to be in writing to be enforceable.

Integrated Contract

A written contract that constitutes the final expression of the parties' agreement. Evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.

15-8: Promises Made in Consideration of Marriage. Before their marriage, Linda and Gerald Heiden executed a prenuptial agreement. The agreement provided that "no spouse shall have any right in the property of the other spouse, even in the event of the death of either party." The description of Gerald's separate property included a settlement from a personal injury suit. Twenty-four years later, Linda filed for divorce. The court ruled that the prenuptial agreement applied only in the event of death, not divorce, and entered a judgement that included a property division and spousal support award. The ruling disparately favored Linda, whose monthly income with spousal support would be $4,467, leaving Gerald with only $1,116. Did the court interpret the Heidens' prenuptial agreement correctly? Discuss.

No the courts did not interpret Heidens' prenuptial agreement correctly. This agreement was executed before the couple had married meaning it was intended to be used if a divorce was to occur. The wording is saying "even in the event of the death of either party". This is implying that that if a divorce did not occur but, a death of either individual had occurred instead, this agreement would be enforced. Because of this incorrect interpretation Linda is benefiting unfairly from the prenuptial agreement.

15-4: Contract Involving Interests in Land. Mohammad Salim offered to sell a convenience store and gas station to Talat Solaiman and Sabina Chowdhury. The prospective buyers drafted a "Purchase Agreement" that described its object as "the property and business known as BP Food Mart" at a specific address. The parties signed the agreement. Later, the buyers wanted out of the deal. Is the property description sufficient for the seller to enforce the agreement? Explain.

No, the property description is not sufficient for the seller to enforce the agreement. A contract for a sale of land must be in writing and should state the location and price and describe the property with enough clarity to allow the terms to be determined from the writing alone. The purchase agreement would be void because of the lack of an adequate property description.

3. The sham deal at the center of this case is known to law enforcement authorities as advance fee fraud, commonly referred to as a "419 scam." Induced by a promise of a transfer of funds from an overpaid contract or some other suspect source, a victim may be asked to pay a tax or other fee first. Among the parties attracted by the 419 scam in this case, who, if anyone, behaved ethically? Discuss.

Shelborne and Tundy acted the most unethical. Tundy scammed Shelborne getting a fee of $50,000 and then disappearing. Shelborne could not pay Parker for the note and decided to disappear as well. Each of them left someone in an unfortunate position with no means of recovery which is unethical. Williams acted unethical when he filed a contract on behalf of Parker that Parker never asked for. This also created a conflict of interest because Shelborne was his client as well which is also unethical. Williams also promised Parker that he would get his money when he was not the one liable for it. Parker acted the most ethical out of all of the four in this case. Parker had thought this whole deal was credible with reassurance from Williams. When the deal went south Parker tried to recover through the court which he filed through the proper channels.

15-7: Promises Made in Consideration of Marriage. After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement. They agreed that the agreement had stated that each would keep his or her own property and anything derived from that property. Robert came into the marriage owning farmland, while Mary Lou owned no real estate. During the marriage, ten different parcels of land, totaling about six hundred acres, were acquired, and two corporations, Tuttle Grain, Inc., and Tuttle Farms, Inc., were formed. A copy of the prenuptial agreement could not be found. Can the court enforce the agreement without a writing? Why or why not?

Since the divorced couple cannot find the agreement in writing the court cannot enforce the prenuptial agreement. Prenuptial agreements must be in writing to be enforced.