Statute of Frauds
How should Part Performance be distinguished?
1) Unequivocally referable concept in plain language as meaning that an outsider, knowing all of the circumstances of a case except for the claimed oral agreement, would naturally and reasonably conclude that a contract existed regarding the land, of the same general nature as that alleged by the claimant. 2)we did not say that the performance must relate exclusively to the oral contract; rather, the performance must lead an outsider to naturally and reasonably conclude that the contract alleged actually existed.
what is the one year clause under the Statute of Frauds?
1) the one year clause- requires a contract to be in writing if it is not to be performed within one year form the date the contact is made. 2)the standard view is that a contract is not subject to the statutory provision if it is possible to be performed within a year, even thought the prospect of such performance is remote. 3)under the prevailing interpretation of the one year provision, contracts of no duration or indefinite duration are not within the statute of frauds ; a contract is within the statute only when by EXPRESSED TERMS of the contact it cannot be performed in less than one year. 4)In applying the one year provision courts typically distinguish between the possibility of performance with in one year and termination within one year. 5)the fact that a contract may be terminated within one year is not sufficient to remove the contract form the requirements of the statue; only performance will do. 6)thus a contact for a definite duration like five years is subject to the statue of frauds even though it might be terminated within one year because of breach by one party or because of some excusing even, such as impossibly of performance.
what are the exceptions of the Statute of Frauds under the UCC?
1)Part Performance- if performance has been started and if the performance is substantial. 2)If you admit in court that there was in fact a contract between the parties.
Statute of Frauds is required under which circumstances
1)The sale of goods over $500.00 must be in writing.
What is the purpose of the statute of Frauds?
1)The statute of frauds was designed to require certain contractual transactions to be in writing to be binding.
what are the classes of contracts that are subject to the Statute of Frauds? (which are not part of the UCC sale of goods)
1)a contract of an executor or administrator to answer for a duty of his decedent (the executor-administrator provision) 2)a contract to answer for the duty of another (the surety ship provision) 3)a contract made upon consideration of marriage (the marriage provision) 4)a contract for the sale of an interest in land (the land contract provision) 5) a contract that is not to be performed within one year form the making or there of (the one-year provision)
What series of questions are likely to be raised when statue of fraud is asserted as a defense against the enforcement of an alleged contract?
1)first, is the contract at issue one of the types to which the statue of frauds apples. 2)second question that must be addressed: is the statue of frauds "satisfied? is there some type of written statement that is sufficient to meet the statues requirements? 1)If answer is yes then the statute again presents no bar to enforcement. 2)if answer is No then a third question must be asked 1)are there other factors in the case, such as performance or reliance by the plaintiff, which might invoke an exception to the statutory bar?
how does Specific Performance relate to Part Performance?
1)most courts have limited the part performance exception to claims for specific performance rather than damages. 2)other forms of part performance. -in contracts that do not involve the sale of land or goods, part performance may be important in determining whether a court should apply the promissory estoppel exception to the statue of frauds.
In regards to land what does the Statute Fraud cover?
1)the land provision of the statute of frauds is not limited to contract for the sale of land but can apply to the transfer of other interest in land such as easements, mortgages and leases. 2)in many jurisdiction statues of frauds are limited to long term leases; for example ones lasting more than a year. 3)it should be noted, however, that the land clause and the one year clause of the statute of frauds are independent provision; if an agreement is with in either one it will be subject to the statutory requirement.
what the Statute does not require
1)the statue does not require the entire contract to be written, but only a memorandum of it. 2)only the party who is to be charged, that is , against whom enforcement is sought, needs to have signed it. The signature of the other party is not needed. 3)the consequence of noncompliance is usually unenforceable,not invalidity.
What are requires for Part Performance to serve as an exception of the Statute of Frauds?
1)there must be performance unequivocally referable to the agreement, performance which alone and without the aid of words of promise is unintelligible or at least extraordinary unless as an incident of owner ship assured if not existing. 2) An act which admits of explanation without reference to the alleged oral contract or a contract of the same general nature and purpose is not in general, admitted to constitute a part performance. 3)A court of equity therefore requires that a part performance relied on to take the case out of the statute of frauds should be of a character, not only consistent with the reasonable presumption that what was done was done on the faith of such a contract, but also that it would be unreasonable to presume that it was done on any other theory.
Why is Parol Evidence allowed in Statue of Frauds?
1)to portray the circumstances surrounding the making of the memo serves only to connect the separate documents and to show that there was assent, by the party to be charged to the content of the one unsigned. 2)if the Parol evidence does not convincingly connect the papers or does not show assent to the unsigned paper, it is within the province of the judge to conclude, as a matter of law , that the statue has not been satisfied. 3)there my be cases in which it would be a violation of reason and common sense to ignore a reference which derives its significance from such Parol proof. If there is ground for any doubt in the matter, the general rule should be enforced. But where there is no ground for doubt, its enforcement would aid, instead of discouraging fraud.
In Part Performance the court must ask the following questions.
1)was there actually an oral agreement such as that alleged by the plaintiff and if so 2)would it be inequitable to deny enforcement to the agreement? The factors should not be applied mechanically to determine whether the plaintiffs performance has met a particular test. Instead the case must be viewed as a whole to determine whether specific performance o the agreement is requited.
What is Specific Performance when relating to the Statute of Frauds?
A contract for the transfer of an interest in land may be specifically enforced notwithstanding failure to comply with the statute of frauds if its is established that the party seeking enforcement, in reasonable reliance on the contract and on the continuing assent of the party against whom enforcement is sough, has so changed his position that injustice can be avoided only be specific enforcement.
what is the effect of the Statute of Frauds on Modifications of a Contract?
A modification is a contract in itself, distinct form the original contract that it changes. As a separate contract , it is subject to most of the usual requirements of contract law for formation and validity. As a general rule the statue of frauds applies to modifications. therefore, whether or not the original contract was subject to the statue, if the contract as modified falls within the statute, the modification must be recorded in a writing sufficient to satisfy it.
what can a court do if price is not determined?
A valid contract of sale may be made without any stipulation as to the price, the law in such case implying that the price is the reasonable value of the thing which is the subject matter of the agreement.
What is referred to as Statute of Frauds
Any statue that requires a transaction to be memorialized in writing for legal efficacy is likely to be referred to as a statue of frauds.
Marriage promise under the Statute of Frauds
Breach of a promise to marry was once a valid cause of action in most jurisdiction: nevertheless, mutual promises to marry have consistently been held not to constitute a contract made upon consideration for marriage. Even thought the language of the original statue seemed broad enough to encompass them. Moreover to come within this class the promise in question must be an actual "consideration" for the promise to marry and not just made on the condition of marriage or in contemplation of marriage.
Statute of fraud requirements if writing are not in same doc?
It is enough to meet the statues demand, if they were signed with intent to authenticate the information contained therein and that such information does evidence the terms of the contract. Also, where each of the separate writings has been subscribed by the party to be charged, little if any difficulty is encountered. 1)the statue requires that the connection between the writings and defendants acknowledgment of the one not subscribed, appear from examination of the papers alone, without the aid of Parol evidence. 2)that a sufficient connection between the papers is established simply by a reference in them to the same subject matter or transaction. The statue is not pressed to the extreme of literal and rigid logic. 3) and oral testimony is admitted to show the connection between the documents and to establish the acquiescence, of the party to be charged, to the content s of the one unsigned. 4)the language of the statute- every agreement is void unless some note or memorandum thereof be in writing, and subscribed by that party to be charged. 5)None of the terms of the contract are supplied by Parol. 6)All of them must be set out in the various writings presented to the court, and at least one writing, the one establishing a contractual relationship between the parties, must bare the signature of the party to be charged, while the unsigned document must on its face refer to the same transaction as that set forth in the one that was signed.
how do lifetime contract apply to the one year rule?
Life time contracts: contacts measured by a lifetime are inherently capable of termination by full performance in less than a year, if the measuring lifetime should end before a year is up , as of course is always a possibility.
Is compliance with the Statute of Frauds sufficient when there is no consideration?
No. If a promise is not supported by consideration, or some other substitute, then compliance with the statute of frauds will not be sufficient for enforcement.
Does the Statute require that the entire writing be in one document?
No. The statue of frauds does not require the Memo to be in one document. It may be pieced together out of separate writing's, connected with one another either expressly or by the internal evidence of subject-matter and occasion.
Will a promise that falls under the Statute of frauds be enforceable where there is consideration but Statute of Frauds has not been complied?
No. failure to comply with the statue of frauds, however, has the reverse effect: the promise, even if it is supported by consideration, will be unenforceable. .
what is the performance exceptions called for the Statute of Frauds?
Part Performance
Statute of Frauds threshold rule for determining if different documents satisfy the Statute of Frauds requirement are?
RULE: the rule fashioned in Crabtee to permit satisfaction of the statue of Frauds by a series of singed and unsigned writing contains two strict threshold requirements. 1)the signed writing must itself establish a contractual relationship between the parties 2)the unsigned writing must on its face refer to the same transaction as that set forth in the one that was signed. NOTE:Compliance with test two threshold requirements may be decided by the district courts a s a matter of law and must be considered without the introduction of Parol evidence. R133 states that a memo sufficient to satisfy the SOF need not have been made as a memorandum of a contract. The requirement of a singed writing. -it is clear that neither the writing itself nor the signature need be formal in order to satisfy the statutory requirement. - 1)it can be signed in crayon paint it can even be an X or it can be signed electronically.
How does the Statute of Frauds apply to the UCC?
The Statute of Frauds under the UCC requires that the sale of goods must be in writing if the sale is over $500.00.
Under the UCC what is covered under the statute of Frauds?
The UCC covers the sale of goods - which requires contracts for the sale of goods for a price of $500.00 or more to be evidenced by a writing signed by the party against whom enforcement is sought, unless some exception to the statute applies.
What type of Part Performance will be sufficient to make an oral promise to transfer an interest in land enforceable?
The type of part performance that will be sufficient to make an oral promise to transfer an interest in land enforceable will be determined by the unequivocally referable test. 2)The court clarifies and broadens the meaning of this test by deciding that it is unnecessary for the promise to show that his performance does not have a plausible explanation other than the existence of a contract. 3)It is sufficient that the performance must lead an outsider to naturally and reasonably conclude that the contract alleged actually exists.
what type of Part Performance will be sufficient to make an oral promise to transfer an interest in land enforceable?
The type of part performance that will be sufficient to make an oral promise to transfer an interest in land enforceable will be determined by the unequivocally referable test. 2)The court clarifies and broadens the meaning of this test by deciding that it is unnecessary for the promise to show that his performance does not have a plausible explanation other than the existence of a contract. 3)It is sufficient that the performance must lead an outsider to naturally and reasonably conclude that the contract alleged actually exists.
What is the Statute of Frauds Exception for Part Performance?
Where an oral contract not enforceable under the statute of frauds has been performed to such extent as to make it inequitable to deny effect therefore equity may consider the contract as removed from a portion of the statue of frauds and decree specific performance.
Can different states have provisions requiring certain class of contracts to be in writing?
Yes. Note also that the restatement refers to the possibility of special statutory provisions in each state requiring certain class of contracts to be in writing. For Example: 1)contracts to pay compensation for services rendered in sale of purchases of business opportunist 2)Agreement made in consideration of non-marital conjugal cohabitation 3) that statues commonly require that a testamentary disposition must be in writing to be given legal effect.
Are the Statue of Frauds provision provided under the UCC separate from the general Statute of Frauds ?
Yes. the statute of frauds provisions of the uniform commercial code are separate form the general statue of frauds.
when do surety-ship fall under the Statute of Frauds?
a promise to answer for the debt of another person or a suretyship contract is usually held not to be within the statue unless it was made to the creditor to whom that debt is owed. Example: co-signer on car loan 1)even then the promise will probably not be subject to the statute if the creditor, in return for the making of the new promise, discharged the original debtor from his obligation. 2)the debt of another provision also has been held to be inapplicable when the promise who has guaranteed payment of another debt did so mainly for his own economic advantage, rather than out of solicitude for the debtors well being.
Statute of Frauds Basic Rule
is that a contract within its scope may not e enforced unless a memorandum of it is written and signed by the party to be charged.
what are the remedies when it comes to land?
it is well settled that land is assumed to have special value not replaceable in money. when real property is the subject matter of the agreement, the legal remedy of damages may be assumed to be inadequate, since each parcel of land is unique. Thus, even though the availability of an equitable remedy such as specific performance generally depends on the inadequacy of any remand at law, where land is the subject matter of the agreement, jurisdiction of equity to grant specific performance does not depend upon the existence of special facts showing that legal remedy is inadequate.
what test will be used to determine the land clause and the one year clause?
it should be noted, however, that the land clause and the one year clause of the statute of frauds are independent provision; if an agreement is with in either one it will be subject to the statutory requirement.
Noncompliance of the Statute of Fraud
noncompliance with the statue does not void the contract, but merely makes it unenforceable. Although there are instances in which consequences follow from characterization contract as void rather than unenforceable, the distinction is not parasitically significant for mos purposes. In either case, the plaintiff is unable to sue on the contract.
what are two key factors that should be considered in regards to part performance when it refers to a sale of land?
two key specific factors, 1)are taking possession of the property, 2)and making valuable permanent and substantial improvements to the property. where these two factors coincide, specific performance usually result.
