Chapter 7

The main purpose doctrine

Holds that if the promisor's principal reason for acting as surety is to secure her own economic advantage, then the agreement isn't bound by the Statute of Frauds writing requirement

Exceptions to the UCC's Statute of Frauds

The 10 day reply doctrine Specially manufactured goods The admission exception The payment or delivery and acceptance exception

Usage of trading

any practice or method of dealing having such regularity of observance in a place, vocation or trade as to justify an expectation that it will be observed with respect to the transaction in question

Basic rule of interpretation

Courts attempt to give meaning to the parties' understanding when they wrote the contract

the possibility test

If an agreement is possible to be performed within a year, it does not need to be in writing

Agreements of executor or administrator

Promise by an executor or administrator of an estate to answer personally for the debt or other duty of the deceased

Statute of Frauds

Requires that some contracts be evidenced by a writing, signed by the party to be bound

Parol Evidence under the UCC

a course of dealing, a usage of trade, or a course of performance can be introduced as evidence to explain or supplement any written contract for the sale of goods.

10 day reply doctrine

if an oral agreement is reached and one party sends the other a written statement confirming it, the other party has ten days to object in writing or the agreement is enforceable

The one-year rule

Any agreement that can't be performed within 1 year from its making must be evidenced by writing

The payment or delivery and acceptance exception

an oral contract for goods in excess of $500 will be upheld if payment has already been made and accepted, or if the goods have been received and accepted.

Course of performance

the conduct of a party in response to a contract that calls for repeated action

Types of contracts required to be in writing

Promises to pay the debt of another Exception: The main purpose doctrine Agreements of executor or administrator Contracts in consideration of marriage Contracts affecting an interest in real estate Exception: the part performance doctrine The one-year rule Exception: the possibility test If an agreement is possible to be performed within a year, it does not need to be in writing Under the UCC Contracts for the sale of goods in an amount greater than $500

Sufficiency of the required writing under the UCC

Writing must be signed by the party to be charged, and the parties must be sufficiently identified

Course of dealing

a sequence of previous conduct between the parties to a particular transaction regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.