Contracts Rules 5

  1. Contracts within statute of frauds

    • Marriage
    • Suretyship (but not indemnity contracts)
    • Real Property contracts (transfer or buy ANY interest in real property)
    • One-year (from day after contract is made)
    • Sale of goods for $500 or more

    NY rule - following must also be in writing:

    • subsequent or new promise to pay debt discharged in bankruptcy
    • assignment of insurance company or promise to name insurance beneficiary
    • contract to pay for services redered in negotiating a real estate transaction
    • Agreement to change, modify, or discharge obligation involving real or personal property
  2. Statute of frauds requiremens
    There must be a memorandum that is:

    • in writing
    • signed by party to be charged
    • contain the essential elements of the deal.

    NY rule: signature = full and intended signature.

    Memo need not be delivered.
  3. UCC requirements for memos (and for modifcations):

    • indicate contract has been made
    • identify the parties
    • contain quantity term
    • be signed by party to be charged
  4. Exception to UCC requirements
    No memo required to prove contract where:

    • Specially manufactured goods
    • Part payment
    • Receipt and acceptance
    • Judicial admision
    • Failure to respond to memo within ten days
Card Set
Contracts Rules 5
Statute of Frauds