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30 Cards in this Set
- Front
- Back
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Contracts within statute of frauds |
1. Rule 2. Electronic records |
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Rule |
Contracts within the statute of frauds must be evidenced by a writing to be enforceable |
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Electronic records |
Full effect is given to electronic contracts and signatures |
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Suretyship provision |
Applies to the promises to pay debts of others 1. Promises must be collateral 2. Main purpose doctrine |
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Promises must be collateral |
Promisor must be secondary, not primarily liable (a separate contract, not like going to the bank and cosigning) |
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Main purpose doctrine |
If primary objective is to provide an economic benefit to the surety, then the promise is not within the statute. |
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Executor-administrator provision |
Applies to promises to answer personally for duties of decedents |
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Marriage provision |
Applies to promises made in consideration of marriage but not to mutual promises to marry |
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Land contract provision |
Applies to promises to transfer any rights, privileges, powers or immunities in real property |
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One year provision |
Applies to contracts that cannot be performed within one year 1. Possibility test 2. Computation of time 3. Full performance of one party |
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Possibility test |
The criterion is whether it is possible, not likely, for the agreement to be performed within one year |
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Computation of time |
The agreement runs from the time the agreement is made |
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Full performance of one party |
Makes the promise of the other party enforceable under majority view |
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Sales of goods |
A contract for the sale of goods for the price of $500 or more must be evidenced by a writing or record to be enforceable Admission - an admission in pleadings, testimony, or otherwise in court makes the contract enforceable for the quantity of goods sold |
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Specially manufactured goods |
An oral contract for specially manufactured goods is enforceable |
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Delivery or payment and acceptance |
Validates the contract only for the goods that have been accepted or for which payment has been accepted |
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Modification or rescission of contracts within the statute of frauds |
Oral contracts modifying existing contracts are unenforceable if the resulting contract is within the statute of frauds |
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General contract law (what the writing must record) |
The writings must 1. Specify parties subject to the contract 2. Specify subject matter and essential terms 3. Be signed by the party to be charged or by her agent |
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Sales of goods (what the writing must record) |
1. Must be sufficient to indicate that a contract has been made between the parties 2. Be signed by the party against whom enforcement is sough or by her authorized agent 3. Specify the quantity of goods sold |
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Written confirmation between merchants |
A written confirmation that is sufficient against the send is sufficient against the recipient unless the recipient gives written notice of his objection within ten days. |
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Three effects on noncompliance in the statute of frauds |
1. Oral contract within statute of frauds 2. Full performance 3. Restitution |
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Oral contract within statute of frauds is... |
Unenforceable |
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After full performance? |
Statute does not apply to executed contracts |
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Restitution |
Is available in quasi contract for benefits conferred in reliance on the oral contract |
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Effects of non-compliance Promissory estoppel |
Oral contracts will enforced where the party seeking enforcement has reasonably and justifiably relied on the promise and the court can avoid injustice by enforcement. |
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Parol evidence rule (statement of rule) |
When parties express a contact in writing that they intend to be the complete and final expression of their rights and duties, evidence of their prior oral or written negotiations or agreements or their contemporaneous oral agreements that vary or change the written contract are not admissible. |
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Situations to which the parol rule does not apply |
1. A contract that is not an integrated document 2. Correction of a typographical error 3. Showing that a contract was void or voidable 4. Showing a condition has in fact occurred 5. Showing a subsequent mutual rescission or modification of the contract |
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Supplemental evidence may be omitted if... |
1. Course of dealing---previous conduct between the parties 2. Usage of trade--practice engaged in by the trade or industry 3. Course of performance--conduct between the parties concerning performance of the particular contract 4. Supplemental consistent evidence |
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Interpretation of contracts |
The ascertainment of the meaning of a promise or agreement or a term of the promise or agreement Rules of interpretation---all the circumstances are considered and the principal purpose of the parties is given great weight |
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Rules of interpretation |
1. A writing is considered as a whole 2. Commonly accepted meanings are used unless the parties manifest a different intention 3. Wherever possible, the intentions of the parties are interpreted as consistent with each other and with course of performance, course of dealing, or usage of trade 4. Technical terms are given their technical meaning 5. Specific terms are given greater weight than general language 6. Separately negotiated terms are given greater weight than standardized terms or those not separately negotiated 7. The order for interpretation is express terms, course of performance, course of dealing, and usage of trade 8. Where a term has several possible meanings, the term will be interpreted against the party who supplied the contract or term. |
