The Statute of Frauds

The Statute of Frauds

To be enforceable, the following types of contracts must be in writing and signed:

§ Contracts involving interest in land.

§ Contracts involving “One Year Rule.”

§ Collateral or Secondary Contracts.

§ Promise made in consideration of marriage.

§ Contracts for the sale of goods priced at $500 or more.

Contracts Involving Interests in Land

Land includes all physical objects that are permanently attached to the soil: buildings, fences, trees, and the soil itself.

All contracts for the transfer of other interest in land: mortgages and leases.

Case 14.1: Michel v. Bush (2001).

The One-Year Rule

A contract that cannot, by its own terms, be performed within one year from the date it was formed must be in writing to be enforceable.

One-year period begins to run the day after the contract is made.

§ Test:  Whether performance is possible             (although unlikely) within one year.

Collateral Promises

Primary v. Secondary Obligations.

“Main Purpose Rule” Exception .

Estate Debts.

Promises Made in Consideration of Marriage

Prenuptial agreements must be in writing and signed to be enforceable.

Contracts must be supported by some consideration to be enforceable.

Prenuptial agreements may not be enforceable if the agreement is not voluntary.

Contracts for the Sale of Goods

UCC requires a writing or memorandum for the sale of goods priced at $500 or more. Exceptions:

§ Partial Performance.

§ Admissions.

§ Promissory Estoppel.

§ Special Exceptions under the UCC.