Tuesday, November 8, 2011
MBE Fast Fact: Statute of Frauds
The Statute of Frauds is a heavily tested area and it'll be important that you not only know when it does apply, but that you also know when the statute is inapplicable, even if it is the type of contract that normally falls within the statute. This will depend upon whether you are dealing with a case involving the sale of goods, or, rather, common law contracts. With the sale of goods, a contract that normally falls within the statute will be taken out of the statute (1): if the goods were specially manufactured, (2) if there is a written confirmation of the oral agreement, and the agreement was between merchants, (3) if there is admission in pleadings that a contract existed, or (4) if partial payment is made and delivery of the goods are accepted. In common law contracts, (ie., those involving services rather than the sale of goods), both admissions in pleadings that a contract existed and part performance of the obligations under the contract remove the contract from the statute.