leases for a term of more than one year must be written promissory estoppel - i s the legal principle that a promise is enforceable by law, even if made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment In most states it is not necessary that the seller knew of the improvements that the buyer made to the real estate in order to fulfill the improvements requirement What is the classic example of a promise by one person to pay the debts of another? a "guaranty contract" in which Dad promises the Vintage that he will pay Lindsey's debt to the Vintage if Lindsey does not. Because Dad received no benefit in this transaction,
the law is suspicious and demands that the Vintage provide written evidence of Dad's promise. What are the three standard elements of a guaranty contract? 1. the guarantor promises to pay the debtor's obligation if the debtor does not. In other words, guaranty contracts occur in situations of "secondary liability." 2. a guaranty promise is made for the benefit of the debtor. If the guarantor's main purpose in making the promise is to benefit himself, it is not a guaranty contract and need not be in writing to be enforceable 3. a guaranty promise is made to the creditor, not to the debtor Two other categories of contracts – promises made in consideration of marriage and executors contracts – fall within the traditional stature of frauds When must a modification contract be in writing? writing if the original agreement had provided that it could be modified only by a writing, or the whole contract, as modified, is required to be in writing under the UCC statute of frauds What are the three circumstances under which oral contracts will be enforceable despite absence of a writing? 1. If the oral contract is for goods to be specifically manufactured for the particular buyer, the goods produced are not suitable for sale to others in the ordinary course of the seller's business, and the seller substantially started the manufacture of these goods. 2. If the defendant admits in court that a contract for sale was made 3. An oral agreement will be enforced to the extent that payment has been made and accepted or that the goods have been received and accepted What is the UCC Confirmation rule? If only one side signs a memorandum of an oral agreement it can be used in court to hold them to the agreement if the sender signed the confirmation and the recipient didn't object within 10 days Under the UCC what other contracts must be written? security agreements, leases of goods worth more than $1000, real estate listings contracts, and insurance contracts Under the UCC when must contract for the sale of goods be written? Who must sign this agreement?
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- Spring '08