Notes for Test 3

Notes for Test 3 - CHAPTER 15 CONTRACTS IN WRITING General...

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CHAPTER 15 – CONTRACTS IN WRITING General Rule: Contracts within the Statute of Frauds must be evidenced by a writing to be enforceable and must be signed by the party you are seeking to hold liable on the contract. Terminology: “within the statute” – must be in writing “outside the statute” – does not have to be in writing, oral contract is enforceable Contracts within the Statute of Frauds include: 1. Contracts for sale of land or involving an interest in land Examples: ownership interests, leases, mortgages, options, easements, life estates Partial Performance Exception: If partial performance, including (1) paid part or all of purchase price, (2) took possession of land, and (3) made or begun to make improvements to the land, then may be able to enforce oral contract (promissory estoppel ) 2. One Year provision Test: Can contract possibly be completed within one year? One-year period starts the date contract is made, not the date performance began If one party performs the contract in full, the other party may enforce even if an oral agreement 3. Executor-Administrator Executor: decedent had a will Administrator: decedent did not have a will, appointed by the court Executors/Administrators must pay debts of estate, but should pay from assets of the estate If executor/administrator make a promise to pay a debt of the estate personally rather than from assets of the estate (“I will personally pay decedent’s debt”) then promise must be in writing 4. Suretyship (Promise to answer for the debt or duty of another) a ‘collateral’ promise to a creditor to pay the debt of another Promisor is secondarily liable, he is liable only if the primary debtor does not pay “If he doesn’t pay, I will pay.” Exception – Main Purpose Doctrine, applies when surety makes promise to pay if primary debtor defaults because of the surety’s own economic benefit, example with developer, contractor, and subcontractors, promise does not have to be in writing 5. Marriage Provision promise made in consideration of marriage, but not mutual promises to marry Example: If you will marry me, I will convey my yacht to you. Premarital agreements are promises made in consideration of marriage and must be in writing 6. Contracts for Sale of Goods (UCC) $500 or more, need a writing (THIS RULE ONLY APPLIES TO SALE OF GOODS NOT SERVICES ) (Example – contract to repair your car for $750 would not have to be in writing) Goods = moveable personal property Exceptions: Admission as part of a court proceeding – but limited to amount admitted Specially Manufactured Goods – custom made goods that cannot readily be resold Partial Performance – oral contract will be enforceable to the extent seller accepts payment or to the extent buyer accepts delivery Confirmation of an oral contract between merchants – if one merchant sends a written confirmation and no objection is made within 10 days by other merchant, then contract is
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Notes for Test 3 - CHAPTER 15 CONTRACTS IN WRITING General...

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