STATUTE OF FRAUDS CHAPTER 15 The law requires that certain contracts be evidenced by a writing to be enforceable. MYLEGS MYLEGS

MYLEGS M marriage, contract for marriage Y year, contracts that cannot be preformed within one year. L land, contracts for the sale of land E executor’s promise, contract that requires executor to pay G goods, contract for sale of goods over $500.00 S surety, contract to pay for the debuts of another

Contracts Involving Interests in Land Land includes all physical objects that are permanently attached to the soil: buildings, fences, trees, and the soil itself. All contracts for the transfer of other interest in land: mortgages and leases.

The One-Year Rule A contract that cannot, by its own terms, be performed within one year from the date it was formed must be in writing to be enforceable. One-year period begins to run the day after the contract is made. Test: Whether performance is possible (although unlikely) within one year.

One Year Rule Wallace construction company K’s to build Harpers new office building. Wallace tells Harper he can have it built within a year. Contract is made in NE in December. Wallace construction company K’s to build Harpers new office building by January15, 2007.The K is made on January 2, 2006.

Collateral Promises Primary v. Secondary Obligations. “Main Purpose Rule” Exception . Estate Debts.

Promises Made in Consideration of Marriage Prenuptial agreements must be in writing and signed to be enforceable. Contracts must be supported by some consideration to be enforceable. Prenuptial agreements may not be enforceable if the agreement is not voluntary.

Prenuptials Bob, very wealthy oil tycoon has daughter, Jeanie. Jeanie loves Mark a poor boy from across the railroad tracks. Bob takes Mark to his own attorney and tells him, if he wants to marry Jeanie by golly he will sign these papers.

Contracts for the Sale of Goods Governed by Uniform Commercial Code (UCC) UCC requires a writing or memorandum for the sale of goods priced at $500 or more. Exceptions: Partial Performance. Admissions. Promissory Estoppel. Special Exceptions under the UCC.

Sufficiency of the Writing Under the Statue of Frauds. Must name, identify subject matter, consideration, other essential terms, and must be signed by the the party against whom enforcement is sought. Under the UCC. Need only name the quantity term and be signed by the party to be charged.

writing G.Gordon, president of Gordon Goodies,K’s Michaels Movies to provide 300 boxes of popcorn month. The K reads as follows. G.Gordon will deliver 300 boxes of fresh popcorn @ $1.00 per box, to Michaels Movies on the first Monday of each month. singed G. Gordon On the 2nd month, G.Gordon failed to deliver the popcorn. Is the writing sufficient for SOF? Is the writing sufficient for UCC?

The Parol Evidence Rule Oral representations or promises made prior to the contract’s formation or at the time the contract was created, may not be admitted in court.

Parol Evidence Rule Harriet’s Hair Do’s K’s with Superduper Malls to lease a store front for one year at $900.00 per month. At the time of signing, Harriet told the CEO of Superduper Malls that she was only signing the K based on a promise by Mr. Smoothtalker that there would not be any other Hair Salons in the Superduper Mall. Two months after opening Harriet’s Hair Do’s, Supercuts moved in two store fronts away. Can Harriet force Mr. Smoothtalker to testify that he made that oral promise?

Exceptions to the Parol Evidence Rule Contracts subsequently modified. Voidable or Void contracts. Contracts containing ambiguous terms. Prior dealing, course of performance, or usage of trade.

Exceptions to the Parol Evidence Rule Contracts subject to orally agreed-on conditions. Contracts with an obvious or gross clerical error that clearly would not represent the agreement of the parties.