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14 Cards in this Set
- Front
- Back
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The statute of frauds states: |
A plaintiff may not enforce any of the following agreements, unless the agreement, or some memorandum of it, is in writing and signed by the defendant: - For any interest in land - That cannot be performed within one year - To pay the debt of another - Made by an executor of an estate - Made in consideration of marriage; and - For the sale of goods worth $500 or more. |
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Unenforceable but not void |
Any contracts that do not meet the requirements for the statute of fraud is unenforceable but it is not void. Once a contract is fully executed, neither party may remand rescission, whether or not the contract was written. |
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Part performance by the buyer in terms of land |
The buyer of land may be able to enforce an oral contract if she paid part of the purchase price and either entered upon the land or made improvements to it. |
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Sale of Goods |
The UCC requires a writing for the sale of goods worth $500 or more. |
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The Basic Rule |
A contract for the sale of goods worth $500 or more is not enforceable unless there is some writing, signed by the defendant, indicating that the parties reached an agreement. |
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The merchant's exception |
Within a reasonable time of making an oral contract, if one merchant sends a written confirmation to the other, and the confirmation is definite enough to bind the sender herself, then the merchant who receives the confirmation will also be bound by it unless he objects in writing within 10 days. |
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Parol Evidence |
Parol evidence refers to anything (apart from the written contract itself) that was said, done, or written before the parties signed the agreement or as they signed it. |
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Integrated contract |
A writing that the parties intend as the final, complete expression of their agreement. |
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Integration clause |
A statement within a contract that clearly proclaims that the writing is the full and final expression of the parties' agreement, and that anything said before signing while signing is irrelevant. |
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Exceptions to Parol Evidence Rule |
In case of an incomplete or ambiguous contract, or in cases of misrepresentation or duress, parol evidence will be allowed. |
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CPA QUESTION Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to: (a) Explain the meaning of an ambiguity in the written contract (b) Establish that fraud had been committed in the formation of the contract (c) Prove the existence of a contemporaneous oral agreement modifying the contract (d) Prove the existence of a subsequent oral agreement modifying the contract |
C. The rule prevents reliance on any oral agreements made while signing the integrated written contract. CPA Examination, November 1991, #23.
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The common law statute of frauds requires that to be "in writing" an agreement must be signed by…. (a) the plaintiff (b) the defendant (c) both A and B (d) none of the above. |
B |
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Mandy verbally tells a motorcycle dealer that she will make her son's motorcycle payments if he falls behind on them. Will Mandy be legally required to live up to this agreement? (a) Yes, absolutely. (b) Yes, if her son is under 18. (c) Yes, if Mandy will be the primary driver of the motorcycle. (d) Yes, if the motorcycle is worth less than $500.(e) No, absolutely not. |
C. If Mandy drives the motorcycle, she can be held to this oral agreement because she benefits from the “leading object,” the motorcycle. |
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In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May, 2014. The deal is never put into writing. In January 2014, if he wanted to cancel the job, Eric _____________ be able to do so. If he does not cancel, and if the band shows up and plays at the party in May, 2014. Eric ______________ have to pay them. (a) will; will (b) will; will not (c) will not; will (d) will not; will not |
A |
