Exam 15: The Statute of Frauds

Natalie agrees to assume Orina's debt to Consumer Credit Corporation. Natalie does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is for

Timber Farms, Inc., and Wood Products Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by

Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years. This contract is enforceable by

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to alter the contract.

Glenn and Haji sign a written contract. Glenn claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under

A contract involving property of any kind must be in writing to be enforceable.

Niche Credit, Inc., is one of Cut-Rite Notching Corporation's two major creditors. Niche guarantees Cut-Rite's debt to the firm's other major creditor, Manufacturers Capital Bank, to forestall litigation. To be enforceable, this guarantee

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs

Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally contracts to buy Smith's house for $100,000, with the closing (transfer of the deed) to take place on June1. Smith's lawyer, who is out of town on vacation, is to draft a written contract of sale on his return to his office on May 15. Because Frances's lease is terminating, Smith agrees to let her take possession of the house on May 1 if Frances gives him a "down payment" on the house of $5,000. Frances agrees and gives Smith the $5,000. She moves into the house on May 2, and the following weekend plants trees in the back yard. On May 10, Smith receives a written offer from Green to buy Smith's house for $120,000. Smith accepts Green's offer, asks Frances to move out of the house, and tries to return the $5,000 to Frances. Frances claims that she has an enforceable contract to buy the house. Smith claims that any such contract must be in writing to be enforceable under the Statute of Frauds. Who is correct and why

Ginamarie files a suit against Gaming Innovators Unlimited, Inc., to enforce a written contract between the parties. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

There are no exceptions to the Statute of Frauds.

Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at

Fact Pattern 15-A2 Radford and Serenity sign a written contract for the sale of Rad’s Coffee & Bagels business to Serenity. The parties intend their written contract to be a final statement of the terms of their agreement. -Refer to Fact Pattern 15-A2. The writing that Radford and Serenity signed is

An oral contract for a transfer of an interest in land is never enforceable.

Shady Oaks Development, LLC, and Rural Acres, Inc., sign a written contract for a sale of land. In some states, to be enforceable, this contract must include

To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include the essential terms.

If a contract to do something in certain intervals over a period of less than one year is not in writing, it is not enforceable.

Fact Pattern 15-A1 Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro’s letterhead that summarizes the items on which they agreed, including a two-year term. Macro begins to perform, but NFC refuses to pay. Macro files a suit to collect. NFC claims that there is no contract. -Refer to Fact Pattern 15-A1. The transaction between Macro and NFC falls within the Statute of Frauds'

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

A contract that by its own terms cannot be performed within a year must be in writing to be enforceable.