Business Law Chapter 16

What does the statute of frauds require existence of?

certain types of contracts to be proved by specific types of evidence

what are three reasons that make written contracts better than oral ones?

less likely to misunderstand terms, better evidence of the terms, AND provides protection against intentional misstatements

what does the parol evidence rule prevents?

a party from trying to prove terms that were left out of a written contract

what are the 4 classes of contracts required to be in writing by the statue of frauds?

contracts by executor of deceased person’s estate to be personally liable for debt; contracts by one person to be liable for a debt of another; contracts for the transfer of an interest in real estate; bilateral contracts that cannot be performed within a year

What does the UCC require for agreements to sale goods of $500+

writing or other specified evidence

Does the statue of frauds consider oral contracts void, voidable, unenforceable, or enforceable?

unenforceable

How does the statue of frauds leave a potential for injustice?

can be easily used to defeat a contract that was actually made as to defeat a fictious agreement

for whom does the guarantor agree to perform contract obligations if they do not perform them?

the obligor

why is a guaranty contract different from an original contract in terms of who is liable?

guarantors are secondarily/conditionally liable, whereas in original contracts all parties are liable

leading objective doctrine

statue of frauds does not apply where the leading object of the guarantor’s promise is to secure a personal benefit

Is part performance from one or two of parties needed for the statue of frauds to be avoided in a real estate agreement?

one party’s performance that clearly demonstrates the existence of a contract to sale

why must long term bilateral contracts be in writing?

contracts for performance over a certain period of time increase the risk of faulty or willfully inaccurate recollection of their terms in subsequent disputes

What does the statue of frauds require of the writings?

Can be any form as long as it indicates the parties had a contract

Who’s signature is required to satisfy the statue of frauds?

the defendant

What does the E-Sig act do for digital signatures?

gives it the same effect as one written with ink

What are e-businesses required to do under e-sign rules?

make system requirements clear for receiving electronic data and also refraining from imposing consent withdrawal fees

congress also intended for e-sign to work in conjunction with which act?

Uniform Electronic Transactions Act (UETA)

How does UETA differ from e-sign?

it does not offer specific rules governing when consent has been given electronically

What is the UCC’s statue of frauds section?

2-201

What are the basic writing requirements for UCC 2-201?

contract in form of written memorandum that indicates contract, quantity of goods sold, signed by the party to be charged.

How are word meanings interpreted by courts from two parties of the same trade?

words meanings are to be controlled by trade usage

parol evidence rule

a party cannot vary the terms of a written contract by introducing evidence of terms allegedly agreed on prior to, or contemporaneous with

what are the exceptions to the parol evidence rule?

lack of voluntary consent, ambiguous contracts, incomplete writings, subsequent oral contracts, conditions precedent