The Statute of Frauds Certain types of contracts

1. Contracts involving REAL PROPERTY Any contract involving real property must be in writing

2. The ONE-YEAR RULE If the contract can’t be completed within one year, it

3. COLLATERAL PROMISES A contract to pay the debt of another person must be

4. Contracts made WHERE THE CONSIDERATION IS MARRIAGE If getting married is the consideration,

5. Contracts for SALES OF GOODS WORTH $500 OR MORE “Goods” - tangible personal

Exceptions to the Statute of Frauds 1. Admission - that a contract was made

2. Partial Performance – an oral contract will be enforceable if some of it

3. Promissory Estoppel Detrimental Reliance - acting in reliance on the oral contract to

What does “In Writing” mean? Doesn’t have to be formal Needs: Signature of the

The Parol Evidence Rule The written contract is the final expression of the parties’

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The Statute of Frauds Certain types of contracts must be written to be enforceable

1. Contracts involving REAL PROPERTY Any contract involving real property must be in writing to be enforceable. Real Property Personal Property Land fixtures Everything else

2. The ONE-YEAR RULE If the contract can’t be completed within one year, it must be in writing to be enforceable. It must be impossible to perform the contract within one year. Even if it’s unlikely. Even if it actually takes longer than a year. 6 years. $108 million.

3. COLLATERAL PROMISES A contract to pay the debt of another person must be in writing to be enforceable. “Main Purpose” Rule - an oral promise to pay the debt of another is enforceable if the guarantor’s main purpose is to secure a personal benefit Owes $1400 Carter Githler

4. Contracts made WHERE THE CONSIDERATION IS MARRIAGE If getting married is the consideration, it must be in writing to be enforceable. Oooh, ham! If you give me your sandwich, I will marry you. Offer and Acceptance Consideration Competent Parties Legal Purpose

5. Contracts for SALES OF GOODS WORTH $500 OR MORE “Goods” - tangible personal property

Exceptions to the Statute of Frauds 1. Admission - that a contract was made in court, or in pleadings Yes, it’s a contract! I admit it!

2. Partial Performance – an oral contract will be enforceable if some of it has been performed and the parties can’t be returned to their prior state

3. Promissory Estoppel Detrimental Reliance - acting in reliance on the oral contract to your detriment may make the contract enforceable Only if injustice can only be avoided by enforcing the contract if I jumped off this cliff during the next two years in exchange for a pencil!

What does “In Writing” mean? Doesn’t have to be formal Needs: Signature of the breaching party (the party against whom enforcement is sought) Essential terms of the contract names of the parties, what the consideration is, dates, etc.

The Parol Evidence Rule The written contract is the final expression of the parties’ agreement. Therefore, the following are not admissible in court: Evidence of prior negotiations (written or oral) Evidence of prior agreements (written or oral) Evidence of contemporaneous oral agreements that contradict the writing Exceptions: Subsequent oral modifications Missing essential terms To explain ambiguous terms