BL-Chapter 14 - 1 CHAPTER 14 STATUTE OF FRAUDS AND...

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CHAPTER 14 STATUTE OF FRAUDS AND EQUITIBLE EXCEPTIONS Statute of Frauds -State statute that requires certain types of contracts to be in writing. -Intended to ensure that the terms of important contracts are not forgotten, misunderstood, or fabricated. Contracts that Must Be in Writing Contracts involving interests in land Contracts that by their own terms cannot possibly be performed within one year Collateral contracts where a person promises to answer for the debt of another Promises made in consideration of marriage Contracts for the sale of goods for more than $500 Real estate agents’ contracts Agents’ contracts where the underlying contract must be in writing Promises to write a will Contracts to pay debts barred by the statute of limitations or discharged in bankruptcy Contracts to pay compensation for services rendered in negotiating the purchase of a business Finders fee contracts Contracts Not in Compliance with Statute of Frauds 1
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An executory contract that is not in writing even though the statute of fraud requires it to be is unenforceable by either party. The statute of frauds is usually raised by one party a defense to the enforcement of the contract by the other party I an oral contract that should have been in writing is already executed, neither party can rescind the contract The contract may be voluntarily performed by the parties Contracts Involving Interests in Land Any contract that transfers an ownership interest in real property must be in writing under the Statute of Frauds to be enforceable. Real Property Land Buildings Trees, Plants, Crops Soil Minerals Timber Other things that are permanently affixed to the land Other contracts that transfer an ownership interest in land must be in writing under the Statute of Frauds. -Built in cabinets in a house are fixtures that become part of the real property 2
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E.g of other contracts that transfer an ownership interest in land: Mortgages -Borrowers often give a lender an interest in real property as security for the repayment of a loan. -This action must be done through the use of a written mortgage or deed of trust Leases -A lease is the transfer of the right to use real property for a set time -Most statute of frauds require leases for a term over one year to be in writing Life Estates -Sometimes a person is given a life estate in real property -It is an interest in the land for the person’s lifetime and the interest will be transferred to another party on that person’s death -A life estate is an ownership interest that must be in writing Easements -Is a given or required right to use a person’s land without owning or leasing it -May be either express or implied -Express easements must be in writing to be enforceable 3
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This note was uploaded on 04/21/2011 for the course BUS LAW 320 taught by Professor Soos during the Spring '10 term at Rutgers.

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BL-Chapter 14 - 1 CHAPTER 14 STATUTE OF FRAUDS AND...

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