Contracts: Statute Of Frauds

Front 1

When a writing is required

Back 1

(1) Transfer of an interest in real property
(2) Performance cannot be completed in a year
(3) Sale of goods for $500 or more (Art. 2)
(4) Lease of goods for $1,000 or more (Art. 2A; NY Only)
(5) Suretyship

Front 2

Transfer of an interest in real property

Back 2

Includes leasing, selling

Front 3

Real property: exceptions

Back 3

(1) Leases of 1 year or less

(2) Part performance exception: S cannot raise SOF defense against B where B has done two of three things: (a) is in possession of property; (b) made some payment; (c) made improvements

(3) B cannot raise SOF defense against S when S has transferred ownership of property to B

Front 4

Performance cannot be completed in a year

Back 4

Must actually be impossible

Clock starts at the date of contract formation (not date of performance)

Front 5

Lifetime employment

Back 5

MBE: need NOT be written

NY: MUST be written

Front 6

1-year rule: Exceptions

Back 6

Work has been fully performed

Front 7

$500 Goods: Exceptions

Back 7

(1) Goods accepted or paid for by buyer
(2) Custom made goods
(3) Judicial admission
(4) Merchants' confirmatory memo

Front 8

$500 Goods: Accepted or Paid for by Buyer

Back 8

Need not be within statute of frauds

E.g., A contracts to sell B $500 worth of weights. B gives A $200. The contract for those $200 worth of weights is enforceable.

E.g., A pays $100 for a $500 boat; B cannot raise SOF defense. (Nondivisible)

Front 9

$500 Goods: Merchants' Confirmatory Memo

Back 9

A can use its OWN signed writing against B where
(1) both parties are merchants
(2) writing claims agreement and has quantity
(3) there is no written objection within 10 days

Front 10

Suretyship

Back 10

Promise to answer for the debt of another
(E.g., another person must first OWE the debt)

Front 11

Suretyship: Main Purpose Exception

Back 11

MBE: if surety's main purpose in making the promise was to benefit himself, then no writing required

NY: Does NOT recognize main purpose exception

Front 12

Contract modification

Back 12

Must be in writing only if the contract AS MODIFIED is within statute of fruads

Front 13

Clauses that prohibit oral modification

Back 13

Common law: NOT enforceable

Art. 2: ENFORCEABLE

Front 14

Satisfactory Writing: SOG (Art. 1)

Back 14

(1) must contain quantity term
(2) must be signed by defendant

Front 15

Satisfactory Writing: Lease of Goods in NEW YORK

Back 15

(1) quantity
(2) signed by defendant
(3) state that it's a lease
(4) duration
(5) rental payments

Front 16

All contracts except SOG and Lease in NY

Back 16

(1) Must contain all material terms (who/what)
(2) Must be signed by D