Statute of Frauds Lecture

Introduction

• Statute of Frauds: Requirement that certain contracts must be evidenced by a signed writing.
• Originated from a 1677 English statute aimed at preventing fraud via perjury.
• Adopted in U.S. common law.

Key Issues

1. Is the contract within the Statute of Frauds?
   • Determine if the statute requires a writing for the contract.
2. Is the contract evidenced by a sufficient writing?
   • Analyze what constitutes a sufficient writing.

Contracts within the Statute of Frauds

• Mnemonic: MY LEGS
  1. Marriage: Contracts in consideration of marriage (not engagements).
  2. Year: Contracts not performable within one year.
  3. Land: Contracts for the transfer of an interest in land.
  4. Executor: Executor promises to pay estate debts personally.
  5. Goods: Sale of goods valued at $500 or more (UCC Section 2201).
  6. Surety: Guarantees for another's debt.

Focus for Course

• Contracts not performable within a year.
• Contracts for the transfer of an interest in land.
• Contracts for the sale of goods.

Sufficient Writing Requirements

• Restatement (Second) of Contracts, Section 131
  • Writing must be signed by the party to be charged.
  • Must identify the contract's subject matter.
  • Indicate a contract has been made.
  • State essential terms with reasonable certainty.

Sample Problems

• $50,000 Second Mortgage: Interest in real estate, requires writing.
• One-Year Employment Contract: Begins a month after signing; exceeds one year, requires writing.
• Promise by a Mother: Not a surety if independently made, no statute of frauds.
• Gold Coin Purchase: Over $500, sale of goods, requires writing.
• Paying Law School Tuition: Direct obligation, not suretyship, no statute of frauds.
• Parent's Loan Guarantee: Suretyship, requires writing.
• Prenuptial Agreement: Not in consideration of marriage or UCC, no statute of frauds.
• Bride's Family Dowry: Consideration of marriage, requires writing.
• Clay Removal: Mineral interest or sale of goods, requires writing.
• Around-the-World Cruise: Services, possible within a year, no statute of frauds.
• Landscaping Contract: Services, no statute of frauds.
• Alpha Centauri Trip: Impossible within a year, requires writing.

Section 139 - Enforcement by Action in Reliance

• Promissory Estoppel: Substitute for lack of compliance with statute of frauds when there is justified reliance.
• Similar to Section 90, allows enforcement to prevent unjust outcomes.

This concludes the introductory lesson on the Statute of Frauds. Next, we will examine the adequacy of writings in the Elizabeth Arden case.