Statute of Frauds
Statute of Frauds
Statute of Frauds
Sale of goods greater than or equal to $500 (applies even if not merchant to
merchant)
Collateral Contracts
Contracts that cannot be performed within a year
1. Transfer if interest in
a. Real Estate
i. Sale of real estate
ii. Contract for a mortgage
iii. Contract for an easement
iv. Contract for a long term lease
Excludes- short term leases of less than a year
1. Collateral Contracts
Contract where GUARANTOR agrees to pay obligation of principle
DEBTOR owed to obligee if principle fails to perform
Exception: where guarantor is acting for his own benefit
Exceptions:
Transfer of real estate
i. Full Performance by seller
ii. Part Performance by buyer + made improvements on land
1. Must have reasonably relied on oral contract to his/her detriment
AND
Enforcement of contract is only way to avoid injustice ($ alone- sufficient)
Paid part or all of purchase price + made improvements
GENERAL OUTLINE
Oral Okay
UNLESS
Statute of Fraud
Requires writing w/ 3 things (signature of party charged)
UNLESS
Confirming Memo w/ Merchant Silence