Blaw Chapter 15

The Statute of Frauds covers all of the following EXCEPT contracts for the sale of:

a new college textbook

Under the parol evidence rule, when the terms of a written contract are ambiguous:

additional evidence is admissible to show the meaning of the terms

Who signed the e-mails?

both parties

As a result, Hardell ______ likely be able to enforce the contract against Westbank.

will

A writing to satisfy the Statute of Frauds can consist of any order confirmation or other document, alone or in combination with other items, in hard copy or electronic copy, including e-mail. The item or items need only contain the essential terms of the contract to bind both parties to the writing. This includes the names of the parties, the subject matter, the consideration, and the quantity, and in the case of a contract involving an interest in land, the location, price, and description of the property. The party against whom enforcement is sought must have signed the writing. An electronic signature, such as a party's name typed at the bottom of an e-mail note, satisfies the signature requirement. In this problem, soil and lumber are objects permanently attached to land and thus fall within the coverage of the statute of frauds. The statute of frauds requires contracts involving interest in land must be in writing to be enforceable. The electronic memorandum exchanged between the parties satisfies the writing requirement of the statue of frauds. The statute of frauds permits electronic communications to constitute a writing as long as they meet the necessary requirements. Thus, Hardell and Westmark have a valid contract, and Hardell will be able to enforce the contract against Westmark.

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Parol evidence rule

A substantive rule of contracts under which a court will not receive into evidence the parties' prior negotiations, prior agreements, or contemporaneous oral agreements if that evidence contradicts or varies from the terms of the parties' written contract.

Integrated contract

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

Oral contracts for the sale of land fall under the Statute of Frauds, but under what circumstance might a court enforce the oral contract without a writing?

If the buyer paid part of the price, took possession, and made permanent improvements to the land

Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank emails a signed electronic memorandum to a representative of Hardell Lumber Co. offering to sell the mature trees and rich topsoil to Hardell for lumber and agricultural purposes. The electronic memorandum includes the parties' typed names, the consideration, the price, and a description of the property, lumber, and soil. Hardell replies via email to Westbank that it accepts Westbank's terms, electronically signs the memorandum, and will start removing the trees and soil next month. Before Hardell can begin clearing the land, Westbank changes its mind, wants to keep the land forested, and prevents Hardell from accessing the property claiming no contract has been formed. The Statute of Frauds requires certain types of contracts to be in writing. All of these contracts must be in writing except

a promise to work for an employer for the rest of your life

What type of signature must be on an e-mail in order to enforce an electronic record?

a typed name

The definition of land includes ______ physical objects that are permanently attached to the property.

all

Examples of physical objects that constitute land for purposes of the statute of frauds include

all of these

A fully integrated written contract is intended to be a ______ and final embodiment of the terms of the parties' agreement. Parol evidence is ______ in such a situation. For example, evidence of a prior negotiation that ______ a term of the written contract would not be admitted.

complete, inadmissible, contradicts

Under which category?

contracts involving land

An electronic memorandum ______ satisfy the writing requirements for the Statute of Frauds.

does

Dillon hires Rhonda to tutor him. They discuss Rhonda's fee and hours and agree that the arrangement will last for the entire school year. Under the Statute of Frauds, this contract:

does not need to be in writing

If a contract contains an integration clause, it means that:

evidence from outside the contract is excluded

A primary obligation and a collateral promise are the same.

false

The following are exceptions to the parol evidence rule. Evidence of any subsequent ______ (oral or written) of a written contract can be introduced in court. Note, though, that oral modifications may not be enforceable under the ______. Oral evidence can be introduced in all cases to show that the contract was voidable or ______

modification, Statute of Frauds, void

After a night of drinking, Bob tells his neighbor, Steve, that he can have a right-of-way to drive across Bob's land to get to a fishing pond. A month later, while Steve is driving across Bob's land, he hears Bob yell, "Get off my property, you trespasser!" Steve has

no enforceable contract

The following types of contracts should be in writing: Contracts involving interests in land. Contracts that cannot, by their terms, be _____ within one year from the day after the date of formation. ______ or secondary, contracts, such as promises to answer for the debt or duty of another. Promises made in _____ of marriage. Under the Uniform Commercial Code, contracts for the sale of goods priced at ______ or more.

performed, collateral, consideration, $500

Under the Uniform Commercial Code (UCC), evidence ______ can be used as evidence for interpreting an otherwise valid written contract.

prior dealing

Land is considered to be

real property

Promissory estoppel and the doctrine of partial performance both require

reasonable reliance

The reasoning behind the one-year rule under the Statute of Frauds is that:

the parties' memory of their contract terms is not reliable for longer than a year

A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by

the person against whom the contract is being enforced

A collateral promise is one made by a third party to assume the debts or obligations of a primary party to a contract if the primary party does not perform.

true

Every state has a statute specifying what types of contracts must be in writing, and we refer to such a statute as the Statute of Frauds.

true

If a contract is partially integrated, evidence of consistent additional terms is admissible to supplement the written agreement

true

Prenuptial agreements must be in writing to be enforceable

true

The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.

true

The written contract need not consist of a single document to constitute an enforceable contract.

true

Under the Uniform Commercial Code, courts allow the introduction of practices and customs generally allowed in a particular industry to shed light on the meaning of certain contract provisions

true

Does the electronic agreement for the sale of trees and soil fall under the statute of frauds?

yes

Does the electronic memorandum describe the property involved?

yes

Does the electronic memorandum have the parties' typed names?

yes

Is it likely a court would find that the electronic memorandum satisfied the statue of frauds?

yes