1. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 1 What Is the Statute of Frauds? Describe the statute of frauds Discuss the consequences of failure to comply with the statute Describe what writing satisfies the statute under the common law and the UCC Explain how the signature influences enforcement of contracts LESSON 12-1 GOALS

2. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 2 MUST ALL CONTRACTS BE IN WRITING? Certain contracts are not enforceable in court unless a signed writing proves their existence. (ex: for land & buildings, this is considered real property) (#8) Enforceable contracts can be created in face-to face conversation such as in the sale of goods in which payment and delivery often occur at the time of the agreement.

3. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING MUST ALL CONTRACTS BE IN WRITING? (#8) Often contracts are made and executed simply from conduct of the parties. (#8) Parties often choose to carry out their agreement even if it does not meet the legal requirements for a writing. Chapter 12Slide 3

4. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 4 WHAT’S YOUR VERDICT? Is Haka’s contract with Simon enforceable?

5. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 5 WHAT IS THE STATUTE OF FRAUDS? Perjury-crime of lying under oath. Statute of frauds – statues that require certain contracts to be evidenced by a signed writing in order to be enforceable in court.

6. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 6 WHAT IS THE STATUTE OF FRAUDS? Contracts within the statute of frauds Within the statute of frauds –contracts required to be in writing to be enforceable in court.

7. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Contracts within the statue of frauds include(#11) Contracts to buy and sell goods for a price of $500 or more Contracts to buy and sell real property or any interest in real property Contracts that require more than one year to complete Promises to pay the debt or answer for a legal obligation of another person Promises to give something of value in return for a promise of marriage Chapter 12Slide 7

8. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 8 WHAT IS THE STATUTE OF FRAUDS? Without the statute of frauds –contract that is not required to be in writing. Executed contracts –contract that has been fully performed. (#9) If within the statue of frauds but with no signed writing the courts leave the parties right where they are-neither party can reverse the contract. (#9)

9. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 9 WHAT IS THE STATUTE OF FRAUDS? Executory contracts -contract that has not been fully performed. (#9) On the other hand, an unsigned executory contract is unenforceable. Neither party can compel performance from the other.

10. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING WHAT IS THE STATUTE OF FRAUDS? Quasi-contract – A contract in which some element of an enforceable contract is missing but the court enforces it as if it were a contract in order to prevent unjust enrichment of one party. (#9) Parties often choose to carry out their agreement even if it does not meet the legal requirements for a writing. Chapter 12Slide 10

11. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 11 WHAT IS THE STATUTE OF FRAUDS? (#12) If a signed writing does not support a contract within the statute of frauds, the courts may not enforce it. In some cases a quasi-contract will be enforced, but there is no guarantee.

12. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 12 WHAT’S YOUR VERDICT? Can the manager enforce this contract against Bellini?

13. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 13 WHAT WRITING DOES THE STATUTE REQUIRE? Multiple writings A series of writings; can be printed, typed, or handwritten. (#10) Content requirements under the common law All essential terms(#10) Names of the parties Subject matter description Price Quantity Other essential terms signature Evidence of a contract(#10)

14. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 14 WHAT WRITING DOES THE STATUTE REQUIRE? Form of the signature The signature may be written, stamped, engraved, or printed. It may consist of any mark that is intended as a signature or authentication of the writing.

15. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 15 WHAT WRITING DOES THE STATUTE REQUIRE? (#13) Under common law a single signed writing or series of writings that contain all essential terms of the contract is required.

16. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 16 WHAT WRITING DOES THE STATUTE REQUIRE? (#13) Content requirements under the Uniform Commercial Code(UCC) The quantity of goods That a contract has been created between the parties

17. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING WHAT WRITING DOES THE STATUTE REQUIRE? Signature requirement UCC and single signature (#14) A single signature between merchants is treated as the writing of the other party if not objected to within 10 days after receipt. Chapter 12Slide 17

18. LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING Chapter 12Slide 18 WHAT’S YOUR VERDICT? Do these writings satisfy the statute of frauds?