Chapter 15

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  1. CL Statute of Fraud
    • Certain types of contracts must be evidenced by a writing to be enforceable.
    • - Suretyship Contracts (promises to pay debt of another)
    • - Marriage Contracts (promises made in consideration of marriage [not mutual promises to get married])
    • - Land Contracts (promise to transfer any interest in land or other real property)
    • - One-Year Rule (a contract that by its terms cannot be completely performed within 1 year after the contract is made [e.g. is is not possible, based on language of the contract, for the contract to be performed within 1 year]) *contract must have stated duration for one-year rule
  2. To prevent Fraud...
    • Some contracts need "reliable evidence":
    • 1.) Writing/signature
    • 2.) Conduct of parties (writing requirement doesn't apply to executed contracts)
  3. Executed Contract
    When all parties of a contract have completed the requirements of the contract ("conduct of parties")
  4. Executory Contract
    When only one side has performed their end of the contract (this is when writing/signature is required)
  5. Under CL, Writing Must:
    • - Specify the parties, subject matter and essential terms
    • - Be signed by party to be charged (e.g. defendant)
  6. UCC Statute of Frauds
    A contract for the sale of goods priced at $500 or more must be evidenced by a writing to be enforceable.
  7. Special Exceptions for USS Statute of Frauds
    • 1.) Specially Manufactured Goods ( an oral contract for specially manufactured goods is enforceable once the seller has made a substantial beginning of performance)
    • 2.) Delivery of Payment and Acceptance (an oral contract is enforceable to the extent that the goods have been delivered by the seller and accepted by the buyer, OR the purchase price has been paid by the buyer and accepted by the seller)
    • 3.) Modification of Contracts (oral contracts modifying contracts are unenforceable if the resulting contract is within the Statute of Frauds)
  8. Under UCC, Writing Must:
    • 1.) Indicate a contract has been made between the parties
    • 2.) Be signed by party to be charged (e.g. Defendant)
    • 3.) Specify the quantity of goods to be sold
  9. Written Confirmation
    In a contract between merchants, a written confirmation of the oral contract signed by the sender satisfies the UCC writing requirement unless the recipient objects in writing within 10 days after receipt.
  10. Exceptions to oral contracts that are required to meet Statute of Fraud Writing Requirements:
    • 1.) Full performance: the SOF writing requirement no longer applies to oral contracts that have been fully executed.
    • 2.) Restitution: Any party who provides benefits to another in reliance on an unenforceable oral contract may recover them under Quasi-Contract
    • 3.) Promissory Estoppel: May be used to enforce oral promises that have led to reasonable & substantial reliance.
  11. Parol Evidence Rule
    When parties sign a written contract that they intend to be the complete & final of their rights and duties, they may not later introduce any evidence of their prior oral or written negotiations or agreements that are different from (or contradict) the terms of the written contract. (make sure all desired terms are in contract BEFORE signing)
  12. Merger Clause
    Contract is intended to be integrated (EVERYTHING is in the contract and it is final contract)
  13. Bilateral Contract
    • - Creates Rights
    • - Creates Duties
  14. Assignment
    To transfer Rights of contract
  15. Deligate
    To transfer Duties of contract
Card Set
Chapter 15
Chapter 15
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