MBE CONTRACTS: Statute of Frauds

6 types of contracts subject to the Statute of Frauds:

1. Marriage

2. Contracts that cannot be performed within a year,

3. Land interests (real estate sales and leases > 1 year),

4. Executor (contracts for an executor or administrator to answer for the duty of a decedent),

5. Suretyship for another’s debts, and

6. Contracts for the sale of goods for a price of ______ or greater

500

6 types of contracts subject to the Statute of Frauds:

1. Marriage

2. Contracts that cannot be performed within ______ ______

3. Land interests (real estate sales and leases > 1 year),

4. Executor (contracts for an executor or administrator to answer for the duty of a decedent),

5. Suretyship for another’s debts, and

6. Contracts for the sale of goods for a price of 500 or greater

a year,

Under the UCC, is quantity is an essential term to satisfy the SOF unless:

1. There is a ______ ______ ______ quantity, or

2. The contract is an output or requirements contract

basis for measuring

For contracts incapable of being performed within a year, when does the one-year period start?

Date of contract execution

Under the UCC, partial performance of divisible goods satisfies the SOF if the partial performance up to the quantity actually ______ or ______ for

delivered, paid

3 requirements for Statute of Frauds:

1. Reasonably identify the subject matter of the contract,

2. ______ ______ of the deal, and

3. Be signed by the party asserting the SOF defense

Essential elements

6 types of contracts subject to the Statute of Frauds:

1. Marriage

2. Contracts that cannot be performed within a year,

3. Land interests (real estate sales and leases > 1 year),

4. ______ (contracts for an executor or administrator to answer for the duty of a decedent),

5. Suretyship for another’s debts, and

6. Contracts for the sale of goods for a price of 500 or greater

Executor

Performance satisfies the SOF for for real estate contracts: when buyer does 2 of the following

1. ______ ______ ______ ______ of the purchase price,

2. Possesses the property, or

3. Improves the property

Full or part payment

When does performance satisfy the SOF for service contracts

Full performance

To determining whether a contract falls within the one-year rule, ask:

Do the express terms of the contract make it ______ ______ ______ ______ in one year?

impossible to be completed

Performance satisfies the SOF for real estate contracts: when buyer does 2 of the following

1. Full or part payment of the purchase price,

2. Possesses the property, or

3. ______ the property

Improves the property

6 types of contracts subject to the Statute of Frauds:

1. Marriage

2. Contracts that cannot be performed within a year,

3. ______ ______ (real estate sales and leases > 1 year),

4. Executor (contracts for an executor or administrator to answer for the duty of a decedent),

5. Suretyship for another’s debts, and

6. Contracts for the sale of goods for a price of 500 or greater

Land interests

3 types of land agreements NOT governed by the SOF:

1. Licenses for less than or equal to 1 year,

2. Mortgage assignments,

3. ______ for less than or equal to 1 year

Leases

Easements and leases are subject to the SOF unless for a length of ______ ______ ______ ______ 1 year

less than or equal to

3 types of land agreements NOT governed by the SOF:

1. ______ for less than or equal to 1 year,

2. Mortgage assignments,

3. Leases for less than or equal to 1 year

Licenses

6 types of contracts subject to the Statute of Frauds:

1. ______

2. Contracts that cannot be performed within a year,

3. Land interests (real estate sales and leases > 1 year),

4. Executor (contracts for an executor or administrator to answer for the duty of a decedent),

5. Suretyship for another’s debts, and

6. Contracts for the sale of goods for a price of 500 or greater

Marriage

3 types of land agreements NOT governed by the SOF:

1. Licenses for less than or equal to 1 year,

2. ______ ______

3. Leases for less than or equal to 1 year

Mortgage assignments

Do indemnity agreements fall within the surety requirement of the SOF?

No

Is a lifetime employment contract subject to the SOF?

No

Does mutual promise to marry, without consideration, fall within the SOF?

No

What happens if a contract is fully performed before one year is up?

No longer applies

Can Statute of Frauds be satisfied after contract formation?

No, can be after

Will contracts tangentially related to land fall within the SOF? (e.g., building a park)

No, land only

Under the UCC, is quantity is an essential term to satisfy the SOF unless:

1. There is a basis for measuring quantity, or

2. The contract is an or ______ contract

output, requirement

Under the UCC, partial performance of indivisible goods satisfies the SOF if there is ______ ______

partial payment

Under the UCC, partial performance of divisible goods satisfies the SOF if the ______ ______ up to the quantity actually delivered or paid for

partial performance

Performance satisfies the SOF for for real estate contracts: when buyer does 2 of the following

1) Full or part payment of the purchase price,

2) ______ the property, or

3) Improves the property

Possesses

Under the UCC, partial performance of divisible goods satisfies the SOF if the partial performance up to the ______ actually delivered or paid for

quantity

Any land agreements transferring or gaining an interest in ______ ______ is covered by the SOF.

real property

If a contract is partially performed before one year is up, SOF still applies but ______ is available

restitution

3 requirements for Statute of Frauds:

1. Reasonably identify the subject matter of the contract,

2. Essential elements of the deal, and

3. Be ______ by the party asserting the SOF defense

signed

Holds some contracts as unenforceable unless in writing

Statute of Frauds

3 requirements for Statute of Frauds:

1. Reasonably identify the ______ ______ of the contract,

2. Essential elements of the deal, and

3. Be signed by the party asserting the SOF defense

subject matter

The SOF does not cover the land conveyance itself, only the contract for the ______ ______ of the land

subsequent conveyance

Performance satisfies the SOF for unique or custom-made goods when there is ______ ______ towards performance

substantial beginning

6 types of contracts subject to the Statute of Frauds:

1. Marriage

2. Contracts that cannot be performed within a year,

3. Land interests (real estate sales and leases > 1 year),

4. Executor (contracts for an executor or administrator to answer for the duty of a decedent),

5. ______ for another’s debts, and

6. Contracts for the sale of goods for a price of 500 or greater

Suretyship

If memorandum of sale contains a mistake as to the price or quantity (UCC), agreement is still valid but only enforceable for quantity listed.
______ ______ can be introduced to show mistake

extrinsic evidence

Contract that promises to pay the debts of a third party.

Suretyship

______ ______ rule: If the surety agreement is for the surety’s own economic benefit, then it does not fall within the SOF

Main Purpose

Under the UCC, the SOF not apply to goods over 500 if goods are

1. ______ ______ goods,

2. Part payment,

3. Receipt and acceptance, or

4. Failure to respond (if both merchants).

Specially manufactured

Under the UCC, the SOF not apply to goods over 500 if goods are

1. Specially manufactured goods,

2. ______ ______,

3. Receipt and acceptance, or

4. Failure to respond (if both merchants).

Part payment

Under the UCC, the SOF not apply to goods over 500 if goods are

1. Specially manufactured goods,

2. Part payment,

3. ______ ______ ______, or

4. Failure to respond (if both merchants).

Receipt and acceptance

Under the UCC, the SOF not apply to goods over 500 if goods are

1. Specially manufactured goods,

2. Part payment,

3. Receipt and acceptance, or

4. ______ ______ ______ (if both merchants).

Failure to respond

Under the UCC, the contract for a sale of goods over 500 is enforceable without signature if no objection in writing within ______ days after receiving confirmation of the terms of the contract

10

To satisfy SOF under UCC for goods worth 500 or more, must have a memorandum of the sale that includes:

1. ______ that a contract has been made,

2. Identity of the parties,

3. Quantity, and

4. Be signed by the party asserting the SOF defense

Indication

To satisfy SOF under UCC for goods worth 500 or more, must have a memorandum of the sale that includes:

1. Indication that a contract has been made,

2. Identity of the ______,

3. Quantity, and

4. Be signed by the party asserting the SOF defense

parties

To satisfy SOF under UCC for goods worth 500 or more, must have a memorandum of the sale that includes:

1. Indication that a contract has been made,

2. Identity of the parties,

3. ______, and

4. Be signed by the party asserting the SOF defense

quantity

To satisfy SOF under UCC for goods worth 500 or more, must have a memorandum of the sale that includes:

1. Indication that a contract has been made,

2. Identity of the parties,

3. Quantity, and

4. Be ______ by the party asserting the SOF defense

signed

Goods considered specially manufactured:

1. Specially made for the buyer,

2. Not for sale to others, and

3. Seller has made either a substantial beginning of their manufacture or ______ for their ______ (UCC § 2-201(3)(a))

commitment, procurement beginning

Goods considered specially manufactured:

1. Specially made for the buyer,

2. Not for sale to others, and

3. Seller has made either a ______ ______ of their manufacture or commitments for their procurement (UCC § 2-201(3)(a))

substantial beginning

Will correspondence suffice to satisfy Statute of Frauds?

Yes