Statute of Frauds - Contracts Foundations Episode

What is the purpose of the Statute of Frauds?

To prevent fraud by requiring written evidence of certain contracts.

What does the Statute of Frauds generally require?

A writing containing the essential terms and signed by the party to be charged.

Who is the party to be charged?

The party against whom enforcement is sought—the party being sued.

Must both parties sign the writing to enforce a contract against one of them?

Generally, no. The writing must be signed by the party against whom enforcement is sought.

What is the general consequence of failing to satisfy the Statute of Frauds?

The contract is unenforceable unless an applicable exception allows enforcement.

Does unenforceable mean that no agreement was made?

No. It means that the court will not enforce the agreement.

Does the Statute of Frauds apply to every contract?

No. It applies only to specified categories of contracts.

What mnemonic helps identify contracts within the Statute of Frauds?

MY LEGS: Marriage, Year, Land, Executor, Goods, and Surety.

What marriage-related contracts fall within the Statute of Frauds?

Contracts made in consideration of marriage, such as a promise to give someone a car if they marry the promisor’s son.

What contracts fall within the one-year provision?

Contracts that, by their terms, cannot be fully performed within one year of formation.

What land-related contracts generally fall within the Statute of Frauds?

Contracts transferring interests in land, including land sales, easements, and generally leases exceeding one year.

What promises by estate representatives fall within the Statute of Frauds?

Promises to personally pay the debts of the estate.

What sales of goods fall within the Statute of Frauds under UCC Article 2?

Sales of goods for $500 or more.

What is a suretyship promise?

A promise to answer for another person’s debt or obligation.

What essential terms does a writing generally need under the Statute of Frauds?

The identity of the parties, a description of the subject matter, and the terms necessary to make the agreement sufficiently definite.

Why must the writing contain the essential terms?

To allow a court to determine what the parties agreed to and how to enforce the agreement.

What key terms should a land sale writing contain?

A description of the land and the price.

What key terms should an employment contract writing contain?

The length of employment and the nature of the work.

What must a writing generally contain to satisfy the UCC Statute of Frauds?

It must indicate that a contract for sale has been made, specify a quantity, and be signed by the party to be charged.

What is the key required term in a writing for a sale of goods?

The quantity term.

Can a goods contract be enforced beyond the quantity stated in the writing?

No.

Must a goods contract writing include every agreed term?

No. UCC gap fillers can generally supply missing terms other than quantity.

What price may the UCC supply when the parties leave the price open?

A reasonable price.

Must the writing be a formal contract?

No. A receipt, letter, email, check, or other sufficient written record may qualify.

Must the writing consist of a single document?

No. Multiple connected documents may satisfy the requirement.

Can a written offer accepted orally satisfy the Statute of Frauds?

Yes, if the writing contains the required terms and is signed by the party to be charged.

Can a cancellation email satisfy the Statute of Frauds?

Yes. It may acknowledge the agreement, contain the required terms, and bear the sender’s signature.

How broadly is the signature requirement interpreted?

Broadly. A symbol or mark used to authenticate the writing, including an electronic signature, may qualify.

Gina orally orders 500 pounds of beef at $3 per pound. Does the contract fall within the Statute of Frauds?

Yes. The total price is $1,500, exceeding the $500 threshold for goods.

Gina emails, “Please cancel my order for 500 pounds of ground beef,” and signs her name. How can this affect enforceability?

The email may satisfy the Statute of Frauds and make the oral agreement enforceable against Gina.

Why can Gina’s cancellation email satisfy the UCC writing requirement?

It indicates that an agreement was made, states the quantity, and contains her authenticating signature.

Must Gina’s cancellation email state the price to satisfy the UCC Statute of Frauds?

No. The price need not appear in the writing.

Can a signed down-payment check serve as a sufficient writing?

Yes, if it indicates the agreement and contains the required terms.

Dre signs a $200 check stating “Down payment for new swimming pool.” How might it satisfy the UCC Statute of Frauds?

It may evidence an agreement to buy one swimming pool and bear Dre’s signature, assuming Article 2 governs.

Does the down-payment amount determine whether a goods contract falls within the Statute of Frauds?

No. The total contract price determines whether the $500 threshold is met.

When a goods contract is modified, which version determines whether a writing is required?

The contract as modified.

An oral goods contract’s price is reduced from $600 to $450. Does the modified contract require a writing under the UCC Statute of Frauds?

No. The modified price is below $500.

An oral goods contract’s price is increased from $450 to $600. Does the modified contract fall within the UCC Statute of Frauds?

Yes. The contract as modified is for $500 or more.

When does the one-year period begin?

At contract formation, not when performance begins.

What is the central question under the one-year provision?

Whether the contract’s terms make full performance within one year impossible.

Does the one-year rule depend on how long performance will probably take?

No. It depends on whether full performance within one year is possible under the contract’s terms.

Samantha promises to wash Priya’s car two years from now for $10. Is the contract within the Statute of Frauds?

Yes. The agreed performance cannot occur within one year of formation.

Does a simple task avoid the one-year provision if it is scheduled more than one year after formation?

No. The agreed timing, rather than the difficulty of the task, controls.

Samantha promises to wash Priya’s car weekly for the rest of Samantha’s life. Is the contract within the one-year provision?

No. Samantha could die within one year, completing the agreed lifetime period.

Why can a lifetime contract fall outside the one-year provision?

The relevant person’s life could end within one year, allowing the agreed lifetime performance to be completed.

James promises to solve cold fusion with no required duration. Is the contract within the one-year provision?

No. Its terms do not prevent full performance within one year, even if that result is extremely unlikely.

Does an extremely difficult task automatically require a writing under the one-year provision?

No. Difficulty or improbability does not establish impossibility within one year.

What should you check first in a Statute of Frauds question?

Whether the contract falls within a covered category.

After identifying a covered contract, what should you examine?

Whether a sufficient writing contains the required terms and is signed by the party to be charged.

What should you consider if the writing is missing or insufficient?

Whether an applicable exception permits enforcement.