Business Law Chapter 15: Statute of Frauds

Memorandum Signitures

Can be anywhere on the document. Does not need to be full name. can be nickname, stamp, letterhead, etc....

When a person promises to pay the debt of another, it's consider to be a _______ promise.

collateral

Under the statute of frauds, For-Life agreements:

don't need to be in writing because it's possible that they can be performed within one year.

Full Performance: Sale or Transfer of Interest in Real Property:

if the seller completely performs her side of a contract for the sale or transfer of interest in real property, a court is likely to enforce the agreement even if it is oral.

Once the contract is fully executed _____.

neither party can seek to rescind the contract. It makes no difference at that point that it was not written.

When someone passes away, a promise by the personal representative of an estate to ___________ needs to be in writing under the statute of frauds.

pay a debt of the estate out of his/her own funds

Although dowry agreements are not common in the United States, __________ are covered by the Statute of Frauds.

prenuptial agreements

The spouses agree how assets are going to be divided before they get married.They can also be done during marriage.

prenuptial agreements

Contract between the original debtor and creditor.

primary contract

Part Performance: Sale of Goods over $500.00: Under the UCC, an oral contract is enforceable to the extent that

the seller has accepted payment or the buyer has accepted delivery of the goods covered by the oral contract.

The memorandum in writing must meet the following requirements:

•It must identify all the essential terms of the parties' agreement. •It must have been signed by the party being charged (sued). Can be checks, emails, etc....

A contract for the sale of land or an interest therein includes: Exception:

•real estate contracts, leases, easements, and mortgages. •Exception: oral lease for one year or less.

In 1677, the British Parliament passed ____________, generally referred to as the Statute of Frauds.

"An Act for the Prevention of Frauds and Perjuries,"

A contract must be in writing for the sale of goods for a price of ________.

$500.00 or more. This applies to the total contract price, not the price per item.

The UCC has revised the rule for a contract for the sale of goods for a price of $500.00 or more. The new limit is:

$5000

The Restatement (Second) of Contracts version of promissory estoppel provides that if the parties enter into an oral contract that should be in writing under the Statute of Frauds, the oral promise is enforceable against the promisor if these three conditions are met:

1) the promise induces action or forbearance of action by another 2) the reliance on the oral promise was foreseeable, and 3) injustice can be avoided only by enforcing the oral promise.

Essential terms of the parties' agreement

1. Names of the parties 2. Consideration (purchase price) 3. Subject matter 4. Time or amount of services (UCC only requires quantity of goods)

Under the statute of frauds, The agreement "As long as you work here at Five Star Pizza, you may have Friday's off." is:

Enforceable whether it is oral or written since the employee might quit a week later.

The one year rule

If a contract cannot be performed within one year of the formation, it needs to be in writing under the statute of frauds.

Under the statute of frauds, An offer of employment for three years:

Must be in writing to be enforceable (cannot be performed within one year).

Part Performance in the Sale or Transfer of Interest in Real Property can be an exception to the statute of frauds if the buyer:

Paid part of the purchase price, and either: •entered upon the land; or •made improvements to it.

Requires certain types of contracts to be in writing

Statute of Frauds

If an agreement can be performed within one-year, but then we modify it to throw it over that year period:

The modification then needs to be in writing under the statute of frauds.

Contract between the person who promises to pay debt if the debtor doesn't and that original creditor is called:

a guarantee contract and needs to be in writing under the statute of frauds.

The Statute of Frauds relates to six kinds of contracts that require written evidence. They are:

1. a contract for the sale of land or an interest therein. 2. a contract not to be performed within one year. 3. a contract for the sale of goods for a price of $500.00 or more. 4. a promise by one person to pay the debt of another. 5. a promise made in consideration of marriage. 6. a promise by the personal representative of an estate to pay a debt of the estate out of his/her own funds.

the agreement of a woman (or her father) to pay consideration to the intended husband.

dowry

Giving someone the right to drive across your land is an example of an _______.

easement

An executory contract that should be in writing under the statute of frauds but isn't ___________.

is unenforceable by either party.