Statute of Frauds
Statute of Frauds
Certain contracts must be written
A contract within the statute’s scope may not be enforced unless a memorandum of it is written and signed by the party to be charged
Only the party to be charged, that is, against whom enforcement is sought, needs to have signed it
Contracts which fall within the statute
Contracts for the sale of land or an interest in land
Lease, mortgage, conveyance, sale, etc.
Contracts that cannot be performed within one year
Must comply with statute if it cannot be performed within one year
Contracts in which the performance will not be completed within one year of contracting
Contracts that cannot be performed within a year are subject to statute
Concerned with whether COMPLETION would be PROHIBITED with a year of the contract
Example
Reservation for a hotel room 18 months from today
The completion of the contract for the room is PROHIBITED from being COMPLETED within one year
Contracts for sale of goods
Restatement § 131
UCC § 2-201
Contracts for sale of goods amounting to over $500
Contracts that are for specially manufactured goods may fall within this category despite the value
Contract reflected in a writing that satisfies requirements
Written memorandum
Information inscribed on tangible medium
No particular formal requirement beyond writing
No need to be in one document
No need to be made at time of contract
Oral testimony of EXISTENCE is satisfactory
Must contain enough information to show contract was made
Common law
Identification of parties, nature of exchange, material terms
UCC § 2-201
Quantity of goods sold is only required term
Must be signed by the party against whom contract is enforced
Party disputing the existence of a contract has signed
Signature, mark, symbol
Only one piece need be signed if contract on multiple doc
ly relies on the other to their detriment
A promise reasonably expected to induce reliance, the inducement of justifiable reliance on the promise by the other party, and the need to enforce the promise to prevent injustice
Policing the Bargain
Capacity
Minority
Contracts are VOIDABLE at the minor’s insistence
The right to disaffirm extends for a reasonable time
Once age of majority and no action to disaffirm, the minor is bound to the contract
Minor’s incapacity is OBJECTIVE fact – capacity is based on age only
Situations where minor incurs liability
Contract for necessities
Major party may recover under restitution (FMV of the goods)
Necessary is not the same as necessity
Emancipation
Independence, marriage, out-of-the-house
