Class 17, Thursday, Feb. 16

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Class 17, Thursday, Feb. 16

• Announcements
• one handout todaystatute of frauds worksheet
• Friday 326-46
• Todays agenda
• Statute of frauds
• Crabtree v. Elizabeth Arden
• Winternitz v. Summit Hills
• Alaska Democratic Party v. Rice

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Today is a great day to learn about the statute
of frauds.
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Statute of Frauds

• England, 1677An Act for prevention of frauds
  and perjuries
• In U.S., every state has adopted some version of
  S/F

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What policies does this serve
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What policies does this serve

• prevent fraud/perjury problem, though, with
  over- and underinclusiveness

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What policies does this serve

• prevent fraud/perjury problem, though, with
  over- and underinclusiveness
• administrative/judicial efficiency

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What policies does this serve

• prevent fraud/perjury problem, though, with
  over- and underinclusiveness
• administrative/judicial efficiency
• certainty for parties

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Overall structure/approach

• Is the K within S/F?

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Overall structure/approach

• Is the K within S/F?
• If so, has it met the requirements of S/F?

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Overall structure/approach

• Is the K within S/F?
• If so, has it met the requirements of S/F?
• If not, does it fall under an exception?

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1. Is it within S/F?

• see p. 296 in casebookreproduces Rest. 110
• You are responsible for
• (1)(b) suretyship provision
• (1)(d) land provision
• (1)(e) one year provision
• (2)(a) UCC 2-201
• If not within S/F, then defense fails if within,
  go to Question 2

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2. If within S/F, has it met its requirements?

• written memorandum evidencing an agreement
• identifying the parties and subject matter
• containing material terms and conditions
• signed by the party to be charged
• If all of these requirements are met, then
  defense fails

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3. If requirements of S/F not met, does an
exception apply?

• If no, then defense succeeds and K is not
  enforceable
• If yes, then defense fails (does not preclude
  enforcement)
• We will get to exceptions with todays second case

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1. Is it within S/F?

• see p. 296 in casebookreproduces Rest. 110
• You are responsible for
• (1)(b) suretyship provision
• (1)(d) land provision
• (1)(e) one year provision
• (2)(a) UCC 2-201
• If not within S/F, then defense fails if within,
  go to Question 2

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Statute of Frauds Worksheet

• 1. K for sale of land.
• 1.5. Written K for sale of land.
• 2. K for lease of apartment for two years.
• 3. K for lease of apartment for one year,
  starting today.
• 4. K for lease of apartment for a one year term,
  starting one month from now.
• 5. K for the construction of a building. The
  building is completed two years after K formation.

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• 6. C enters into a contract to sell tires to A.
  C delivers the tires to A. A puts the tires on a
  truck and sells the truck with tires to B. B
  promises to A that B will pay C.

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• 7. C is a car dealer. A and B walk into the
  store. A is a minor. B is A's friend and has
  reached the age of majority. A wants to buy a
  car. C enters into a contract with A and B where
  A purchases the car and B guarantees A's
  obligation.

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• 8.A is a company that owes money to C. B is a
  major customer of A. A's loan to C is past due
  and C is threatening foreclosure. B promises to
  C that if C will extend the time for repayment, B
  will guarantee A's obligation.

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• 9. A agrees to work for B for five years.
• 10. A agrees to work for B for five years, if A
  lives that long.
• A agrees to work for B for five years, but if A
  dies, the contract is to be terminated.
• 12. A agrees to work for B for A's life.
• 12.5 A agrees to work for B for B's life.

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• 13. Carl Coan, a first-year law student, entered
  into an oral agreement with Victor Orsinger,
  under which Coan was to be resident manager of an
  apartment development owned by Orsinger "until
  Coan completed his law studies as a student duly
  matriculated in Georgetown University Law Center,
  Washington, D.C. or was obliged to discontinue
  these studies."

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• 14. A agrees to work for B on a Sunday 13 months
  from now.
• 14.5 In satisfaction of a debt owed by A to B, A
  agrees to work for B for 13 months or to paint
  B's portrait.

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• 15. A promises B that if B agrees to not drink,
  gamble, and smoke for five years, that A will
  give B 5000. B agrees.
• 16. A promises B that if B forbears from
  drinking, gambling, and smoking for five years,
  that A will give B 5000.

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• 17. A agrees to sell B a lawn mower for 50.
• 18. A agrees to sell B a car for 500.
• 19. A agrees to sell B 10 widgets for 50 each.
• 20. A agrees to mow B's lawn for 500. (It's a
  really big lawn.)

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Crabtree v. Elizabeth Arden Sales Corp.

• New York Court of Appeals
• 305 N.Y. 48, 110 N.E.2d 551 (1953)

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Who is suing whom? For what kind of
damages? What is the subject matter of the
transaction? What is the legal basis for the
claim? What is the factual basis for the
claim? Arguments/defenses?
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What happened at the trial court level? First
appeal? Second appeal? Issue? Authorities/Rule?
Application to facts in case? What policies
does it further/ignore?
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Winternitz v. Summit Hills Joint Venture

• Court of Special Appeals of Maryland
• 73 Md. App. 16, 532 A.2d 1089 (1987), cert
  denied, 312 Md. 127, 538 A.2d 778 (1988).

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Who is suing whom? For what kind of
damages? What is the subject matter of the
transaction? What is the legal basis for the
claim? What is the factual basis for the
claim? Arguments/defenses?
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What happened at the trial court level? What
happened on appeal? Issue? Authorities/Rule? Ap
plication to facts in case? What policies does
it further/ignore?
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Part performance exception

• Why doesnt the part performance exception apply
  in this case?
• How does this court get around this technical
  limitation of the part performance exception?

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clause-specific exceptions

• land
• one-year provision
• surety
• 2-201 (tomorrow)

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general exceptions

• next case

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Alaska Democratic Party v. Rice

• Supreme Court of Alaska
• 934 P.2d 1313 (1997)

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Who is suing whom? For what kind of
damages? What is the subject matter of the
transaction? What is the legal basis for the
claim? What is the factual basis for the
claim? Arguments/defenses?
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What happened at the trial court level? This
appeal? Issue? Authorities/Rule? Application
to facts in case? What policies does it
further/ignore?
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Application of s/f

• Is K within s/f?
• Have the requirements been met?
• (a) written memorandum evidencing an
  agreement
• (b) identifying the parties and subject
  matter
• (c) containing material terms and conditions
• (d) signed by the party to be charged
• If not, does it fall within an exception?
• (a) clause specific exceptions
• (b) general exceptions

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139. Enforcement By Virtue Of Action In Reliance

• (1) A promise which the promisor should
  reasonably expect to induce action or forbearance
  on the part of the promisee or a third person and
  which does induce the action or forbearance is
  enforceable notwithstanding the Statute of Frauds
  if injustice can be avoided only by enforcement
  of the promise. The remedy granted for breach is
  to be limited as justice requires.

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139. Enforcement By Virtue Of Action In Reliance

• (2) In determining whether injustice can be
  avoided only by enforcement of the promise, the
  following circumstances are significant
• (a) the availability and adequacy of other
  remedies, particularly cancellation and
  restitution
• (b) the definite and substantial character of
  the action or forbearance in relation to the
  remedy sought
• (c) the extent to which the action or
  forbearance corroborates evidence of the making
  and terms of the promise, or the making and terms
  are otherwise established by clear and convincing
  evidence
• (d) the reasonableness of the action or
  forbearance
• (e) the extent to which the action or
  forbearance was foreseeable by the promisor.

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Narrow estoppel
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Narrow estoppel

• Comment f to 178 in first Restatement

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Narrow estoppel

• Comment f to 178 in first Restatement
• 1. statement re statute of frauds requirements

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Narrow estoppel

• Comment f to 178 in first Restatement
• statement re statute of frauds requirements
• e.g., There is a writing that satisfies s/f.
• This K isnt subject to s/f.

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Narrow estoppel

• Comment f to 178 in first Restatement
• statement re statute of frauds requirements
• promise re statute of frauds requirements

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Narrow estoppel

• Comment f to 178 in first Restatement
• statement re statute of frauds requirements
• promise re statute of frauds requirements
• e.g., I will put this in writing.
  

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Broader promissory estoppel

• e.g., Alaska Democratic Party v. Rice
  Restatement 139

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End of Class

• Friday 326-46