the statute of frauds - certain types of contracts must be written to be enforceable

The Statute of Frauds -Certain types of contracts must be written to be enforceable

1. Contracts involving REAL PROPERTYAny contract involving real property must be in writing to be enforceable.Real Property Personal Property

Land and fixtures Everything else

2. The ONE-YEAR RULEIf the contract can’t be completed within one year, it must be in writing to be enforceable.If the contract can’t be completed within one year, it must be in writing to be enforceable.

It must be impossible to perform the contract within one year.It must be impossible to perform the contract within one year. Even if it’s unlikely.

Even if it actually takes longer than a

year.

6 years. $108 million.

3. COLLATERAL PROMISESA contract to pay the debt of another person to pay the debt of another person must be in writing to be enforceable.

“Main Purpose” Rule -- an oral promise to pay the debt of another is an oral promise to pay the debt of another is enforceableenforceable if the guarantor’s main purpose is to secure a personal if the guarantor’s main purpose is to secure a personal

benefitbenefit

Carter

Githler

Owes $1400

4. Contracts made WHERE THE CONSIDERATION IS MARRIAGE

If getting married getting married is the consideration, it must be in writing to be enforceable.

Offer and AcceptanceConsiderationCompetent PartiesLegal Purpose

Oooh, ham! If you give me your sandwich, I will marry you.

5. Contracts for SALES OF GOODS WORTH $500 OR MORE

“Goods” - tangibletangible personal property

Exceptions to the Statute of FraudsExceptions to the Statute of Frauds

1. Admission - that a contract was made in court, or in pleadings

Yes, it’s a contract! I admit it!

2. Partial Performance – an oral contract will be enforceable if some of it hasan oral contract will be enforceable if some of it hasbeen performed and the parties can’t be returned to their prior statebeen performed and the parties can’t be returned to their prior state

3. Promissory EstoppelDetrimental Reliance - acting in reliance on the oral contract to your detrimentmay make the contract enforceable

Only if injustice can onlyonly be avoided by enforcing the contract

if I jumped off this cliff during the if I jumped off this cliff during the next two years in exchange for a next two years in exchange for a pencil!pencil!

if I jumped off this cliff during the if I jumped off this cliff during the next two years in exchange for a next two years in exchange for a pencil!pencil!

What does “In Writing” mean?

Doesn’t have to be formal

Needs:

Signature Signature of the breaching party (the party against whom enforcement of the breaching party (the party against whom enforcement is sought)is sought)Essential terms of the contract names of the parties, what thenames of the parties, what the

consideration is, dates, consideration is, dates, etc.etc.

The Parol Evidence Rule

The written contract is the final expression of the parties’ agreement.

Therefore, the following are not admissible in court:

Evidence of prior negotiations (written or oral)

Evidence of prior agreements (written or oral)

Evidence of contemporaneous oral agreements

that contradict the writing

Exceptions: Subsequent oral modifications Missing essential terms To explain ambiguous terms