Statute of Frauds

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Statute of Frauds by Mind Map: Statute of Frauds

1. If a contract is within the statute of frauds, it may not be enforced unless there is a written memorandum signed by the party to be charged (Defendant in suit)

1.1. Types under Common Law:

1.1.1. Marriage Contracts Applies to promises to support a child, leave property to spouse, prenuptial agreements Does not apply to promises to marry

1.1.2. Modifications to contracts If parties to an existing contract modify it, then the new contract must comply with the statute of frauds in the contract (as modified falls in the statute)

1.1.3. Year or longer contracts Contracts that cannot be fullfilled in under one year Counting Rule

1.1.4. Land contracts (Buying or selling) Agreements to buy or sell land, and depending on jurisdiction, Assumption, extensions , modifications of mortgages Create, Transfer or assign a long term lease (Typically 3 years)

1.1.5. Executors Contracts Contracts by executor or administrator to answer for the decedent's debts out of the executors pocket

1.1.6. Goods sold for $500 or more Under the UCC Requirements 1. Quantity 2. signed by parties to be charged 3. Indication Contract has been made

1.1.7. Surety Contracts (Surety agreement with creditor needs to be in writing) Promises to pay the debt of another. Must be a debt owed to another must be apromise to pay the debt of another promise made to the creditor Survive the main purpose rule

1.2. Does the contract fall within statute of frauds

1.2.1. yes Is the writing requirement satisfied? Yes no

1.2.2. No Oral Contract Enforceable

2. Elements

2.1. Under Common Law

2.1.1. 1. Signed by the party to be charged

2.1.2. 2. Indicates contract has been made

2.1.3. 3. Identifies the parties to the contract

2.1.4. 4. Reasonably describes the subject matter of the contract

2.1.5. 5. States the essential terms of the contract

3. Exceptions

3.1. Restitution

3.1.1. Even if the defense of the statute of frauds is successful, a party who has conferred benefits on the other party may recover in restitution (not in expectation or reliance)

3.2. Part Performance

3.3. Admissions

3.3.1. The statue of frauds cannot be used as a defense if there has been a court related (Under oath) admission of valid contract

3.4. Merchant Confirmations

3.4.1. Between merchants if within reasonable time one merchant sends a writing in confirmation of the contract to another merchant, the receiving merchang has reason to know of the contents of the sent confirmation within 10 days the confirmation is good to satifsy the statute as to both parties.

3.5. Waiver/Estoppel

3.5.1. An affirmative defense that must be raised in pleadings.

3.5.2. Equitable estoppel will prevent a person from ascertaining the defense of the statute of frauds if ther is misrepresentation on which the other parties detrimentally relies.