MOR 215: Chapter 11

William made a contract with Kevin to build a boat for $800. William's failure in building the boat led to a breach of contractual obligation. This is an example of:

Default

debt

Obligation to pay money

How does a memorandum differ from a written contract?

One may introduce oral testimony to explain or complete the memorandum

Which of the following demonstrates an advantage of a written contract over an oral contact?

The existence of a contract cannot be denied if it is in writing

What advantages does a written contract have over an oral contract?

The existence of a contract cannot be denied if it is in writing. If there were no witnesses when an oral contract was formed, one of the parties might successfully deny that any contract was made. In addition, the terms of the contract can be ascertained in case of death.

Under what circumstances is the Statute of Frauds requirement of a writing unnecessary when a person agrees to be responsible for the debt of another?

Promise is an original promise by the promisor rather than a promise to pay the debt of another. P 113

memorandum

A note required by the Statute of Frauds must set forth all the material terms of the transaction.

What must be included in a note or memorandum required by the Statute of Frauds?

All the material terms and Signature / written or electronically

An agreement to _____ comes under the Statute of Frauds and must be in writing.

An agreement to sell any interest in land comes under the Statute of Frauds. The required writing differs from the deed, which will be executed later and by which the seller makes the actual transfer of title to the buyer.

Statute of Frauds provides that the following types of agreements must be in writing:

An agreement to sell land or any interest in or concerning land An agreement the terms of which cannot be performed within one year from the time it is made An agreement to become responsible for the debts or default of another An agreement of an executor or administrator to pay the debts of the estate from the executor's or the administrator's personal funds An agreement containing a promise in consideration of marriage An agreement to sell goods for $500 or more

Default

Breach of contractual obligation other than money

parol evidence rule

Complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake exists

The breach of contractual obligation is called:

Default

Shirley who is planning to start a boutique borrows $100,000 from Danny. Gary, Shirley's uncle, promises Danny to pay Shirley's debt to Danny if she defaults on payment. According to the Statute of Frauds, which of the following is true with regard to this scenario?

Gary's promise must be in writing.

Under what circumstances will courts admit oral evidence to add to or modify a written contract?

If the contract is not complete, the courts will admit parol evidence to clear up ambiguity or to show the existence of trade customs that are to be regarded as forming part of the contract

Sam and Denise enter into an oral contract whereby Sam promises to sell his one acre land to Denise for $1,000,000. Sam and Denise perform according to the terms of this oral contract. Denise pays $1,000,000 and becomes the owner of Sam's one acre of land. Which of the following is true with regard to this scenario?

If two parties enter into an oral contract that falls under the Statute of Frauds and both parties have fully performed according to its terms, neither party can seek to set aside the transaction on the ground that there was no writing. However, if one has paid money or performed a service under an oral contract required by the Statute of Frauds to be in writing, the money or the value of the service may be recovered even though the executory part of the contract cannot be enforced.

Statute of Frauds

Law requiring certain contracts to be in writing

Dexter contracted with the Roberts to mow their yard once a week during the summer in exchange for $50 per week. The contract was clearly drafted and signed by both parties. Halfway through the summer, Dexter sued the Roberts over the weekly pay. He claimed the Roberts had sent an email to him two weeks before signing the contract and had promised to pay $75 per week. Will Dexter be able to present the email as evidence to modify the written contract?

No, because the admission of the email would violate the parol evidence rule.

Percy owns an apartment in Maryland. She leases this property to Sandy for a four-year term.

This contract must be in writing in order to be binding.

Other Written Contracts

contracts for the sale of securities, agreements to pay a commission to a real estate broker, and a new promise to extend the statute of limitations.

Under what circumstances will the courts allow enforcement of an oral contract required by the Statute of Frauds to be in writing?

executory contracts and both parties have fully performed according to its terms.

If two parties enter into an oral contract that falls under the Statute of Frauds and both parties have fully performed according to its terms then:

neither party can set aside the transaction on the ground that there was no writing.

parol evidence

oral testimony

A complete, written contract may not be modified by oral testimony unless evidence of fraud, accident, or mistake exists.

parol evidence rule

When a party sues to enforce an alleged contract, what is the requirement of the Statute of Frauds regarding the evidence of an agreement of the parties to an alleged contract?

requires that the contract be evidenced by a writing signed by both parties or that there be a note or memorandum in writing signed by the party against whom the claim for breach is made

According to the federal Electronic Signatures in Global and National Commerce Act:

signatures on a contract no longer have to be on paper.

Give three examples of contracts not involving the sale of land, but only an interest in the land, that the Statute of Frauds requires to be in writing.

1. Involves rights of way joint use of drive ways, mineral rights, or timber. A lease of property over a year.

Which of the following is an exception to the Statute of Frauds and does not have to be in writing?

An agreement where a promise is an original promise by the promisor rather than a promise to pay the debt of another

When will the parol evidence rule permit modification of a written contract that appears to be complete, by another writing made before or at the time of executing the contract?

Evidence of fraud, accident, or mistake exist so the writing is in fact not a contract but is incomplete

Bryce promises to sell Marcia a parcel of land for $100,000. The two specify the terms of the sale in a written contract, but only Bryce signs the agreement. Marcia subsequently decides she does not want to buy the land. Will Bryce be able to enforce the agreement?

No, because Marcia did not sign the written agreement

If David agrees in consideration of $1,000 to mow his elderly neighbor's lawn "for as long as she lives next door to him," does the contract have to be in writing? Why or why not?

No, because there is no certainty that elderly lady will live one year. But if she lives past a year a contract needs to be signed in writing

The law requires a contract that cannot be performed within _____ year(s) of the date of formation to be in writing.

ONE