Statue of Frauds (Applicability)
- Marriage
- Contracts with performance due after more than a year
- Land contracts
-Goods of $500 or more
- Suretyship
What are the MMUDDII defenses?
(1) Mistake, (2) misrepresentation/fraud (3) unconscionability, (4) undue influence, (5) duress, (6) illegality, (7) incapacity
What is the exception for specially manufactured goods under the SOF?
The goods are unique to the buyer and wouldn't be otherwise sold by the seller.
What is the difference between duress and undue influence?
Duress - threats that deprive choice
Undue influence - taking advantage of someone's circumstances i.e. on their deathbed
What does MYLEGS stand for?
Marriage
Year or more
Land
Executor
Goods ($500 or more)
Surety
What must you have to be in compliance with the SOF?
- A writing
- signed by the parties enforcement is sought against
- contains all of the essential elements of the deal
What are the two different types of mistake? What are the rules for each to void a contract?
Unilateral Mistake - one party makes a mistake about an essential part of the contract and they shouldn't have known better
Mutual Mistake - both parties are mistaken about an essential part of the contract and the party worse off didn't bear the risk
What is the exception for a written confirmatory memo?
When a memo is sent and the receiving party doesn't respond in 10 days
Who can't contract because of incpacity?
People who are (1) under 18, (2) incompetent, (3) intoxicated
What does SWAP stand for?
Specially manufactured goods
Written confirmatory memo
Admissions in court
Part performance
What types of contracts are exempt from the SOF?
- Specially manufactured goods
- Written confirmatory memos
- admissions in court
- part performance
What is the rule to void a contract under fraudulent misrepresentation?
Misrepresentation - An untruthful statement that misleads another and causes them to join the contract
What is the exception for a statement made in court?
Statements in court about the existence of a contract don't require the SOF
How long does a minor have to back out of a contract without consequence?
Until a reasonable time after their 18th birthday
On a hypo, what is the issue spotting process for SOF/defenses to enforcement? (Hint - three parts)
(1) SOF - yes/no
(2) if SOF - MYLEGS and SWAP
(3) if not SOF MMUDDII
Under the UCC - What is specifically required in the written sale of goods contract?
(1) indication of contract (2) identifies the parties, (3) contains quantity, and (4) is signed
What is the rule for voiding a contract under a defense of unconscionability?
Procedural - when the process of contracting deprives a party of meaningful choice.
Substantive - When a clause within the contract is so unfair it shocks the conscience.
What is the exception for part performance? (land contracts)
Must have two of three - possession, payment, and improvement
In a unilateral mistake, when is the contract NOT voidable?
When enforcement is NOT unconscionable or the the other party didn't know/cause mistake
How many types of contracts are subject to the SOF?
6 - M Y L E G S
When is the SOF not required that is NOT listed in the SWAP exceptions?
Promissory estoppel
What are the rules to void a contract based under (1) duress, (2) illegality, (3) incapacity?
(1) - when a party makes an improper threat that strips the other party of a meaningful choice (more on this later)
(2) - when a contract is illegal under the law
(3) - When a party lacks the capacity to form a contract (more on this later)
What is the effect of promissory estoppel on the need for the SOF?
The SOF is not necessary if PE is met.
When reformation is available
How man meeting of the minds defenses exist?
7 - M M U D D I I