LAW 335 STUDY GUIDE EXAM 1 2022/2023 LATEST UPDATE RATED 100%

BUSINESS LAW 335 STUDY GUIDE EXAM 1 2022/2023 LATEST UPDATE RATED 100% Law 335 First Test Study Guide Chapter 16 Writing *No general requirement that contracts be in writing. Oral contracts are legally enforceable if they can be proven Statute of Frauds *Parliament enacted in 1677 in an attempt to stop the widespread fraud and perjury. It required written evidence before certain classes of contracts would be enforced. *The statutes, which require certain kinds of contracts to be evidenced in writing, are exceptions to the general rule that oral contracts are enforceable. *Only apply to executor contracts. If oral contract has been completely performed by both parties, the fact that it did not comply with the S of F would not be grounds for recission. *Statute is more of a formal rule that a rule of substantive law. *If contract is “within the statue of frauds” if it is required to be in writing 6 Contracts Covered by the Statute of Frauds 1. Collateral Contracts in which a person promises to perform the obligation of another person a. Collateral contract – one person (the guarantor) agrees to pay the devt or obligation that second person (the principal debtor) owes to a third person (the obligee) if the principal debtor fails to perform. b. Collateral contract involves at least 3 parties and at least 2 promises to perform c. Guarantor promises to pay only if the principal debtor fails to do so Exception: A collateral contract can be treated like an original contract if the person promising to pay the debt of another is doing so for personal benefit. (Called main purpose or leading object rule) No writing is then required. 2. Interest in Land: A contract that creates or transfers an interest in land a. A contract to sell or mortgage real estate must be evidenced in writing b. Option to purchase real estate or contract to grant easement or permit mining and removal of minerals on land must be in writing c. Leases are NOT required to be in writing unless they are longer than a year d. Contracts to erect a building is not within the S of F because it does not involve transfer of land Exception: Oral contract for the sale of land that has been completely performed by the vendor (seller) is enforceable Exception: Transfer of an interest in land can be enforced even without writing if the person seeking enforcement: 1- Has reasonably relied on the contract and on the other party’s assent 2- Has changed his position to such an extent that enforcement of the contract is the only way to prevent injustice Vendee (buyer) must have done some act in reliance on the contract that restitution (returning his money) would not be an adequate remedy. 1- The part performance doctrine will not permit the vendee to collect damages 2- The pp doctrine will permit him to obtain specific performance forcing breaching party to perform contract Vendee’s payment of the purchase price alone is usually not sufficient for the part performance doctrine. 3. Contracts that Cannot be Performed within 1 Year a. Provision guards against risk of faulty or willfully inaccurate recollection of long-term contracts b. If the contract has been fully performed by one of the parties it is enforceable without a writing c. If the contract is for an indefinite period of time, it is not within the statue of frauds d. Contract “for life” is not within the statue of frauds e. If the contract comes into existence more than a year before contract is able to be completed, it is within the statue of frauds and must be in writing 4. Sale of Goods for $500 or more a. Contracts for the sale of goods for the price of $500 or more are not enforceable without writing or other specified evidence that the contract was made a.i. Modified contract that brings price above $500 must now be in writing