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George Mason School of Law

George Mason School of Law. Contracts I Statute of Frauds F.H. Buckley fbuckley@gmu.edu. Why 1677?. Party on, dudes!. Why 1677?. Juries as fact-finders Interested parties not admissible as witnesses. Why 1677?. Juries as fact-finders Interested parties not admissible as witnesses

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George Mason School of Law

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  1. George Mason School of Law Contracts I Statute of Frauds F.H. Buckley fbuckley@gmu.edu

  2. Why 1677? Party on, dudes!

  3. Why 1677? • Juries as fact-finders • Interested parties not admissible as witnesses

  4. Why 1677? • Juries as fact-finders • Interested parties not admissible as witnesses • And that made the Statute of Frauds necessary because….?

  5. Why 1677? • Juries as fact-finders • Interested parties not admissible as witnesses • And that made the Statute of Frauds necessary because….? • And if it did, why do we need it now?

  6. The Statute of FraudsWhat’s its Purpose? McIntosh

  7. The Statute of FraudsWhat’s its Purpose? McIntosh • Evidentiary • Antifraud 7

  8. The Statute of FraudsWhat’s its Purpose? McIntosh • Evidentiary • Antifraud • Cautionary • Reflects seriousness of contracting 8

  9. The Statute of FraudsWhat’s its Purpose? McIntosh • Evidentiary • Antifraud • Cautionary • Reflects seriousness of contracting • Channeling • Distinguishing enforceable contracts 9

  10. The Statute of FraudsWhat’s its Purpose? McIntosh • Evidentiary • Cautionary • Channeling • Can you think of a fourth reason, unconnected to the protection of the parties? 10

  11. A trap for the unwary?

  12. The Statute of Frauds • Marriage • The old action for breach of promise

  13. The Statute of Frauds • Marriage • Restatement § 124 • A promises to settle Blackacre upon B when she marries C?

  14. The Statute of Frauds • Marriage • Restatement § 124 • Illustrations 1, 3, 5

  15. The Statute of Frauds • Marriage • Restatement § 124 • Illustrations 1, 3, 5 • Restatement § 90(2) • Illustration 18

  16. The Statute of Frauds • Marriage • Promises not to be performed within One Year • Restatement § 110(1)(e)

  17. The Statute of Frauds • Marriage • Promises not to be performed within One Year • What kind of promises were these in 1677?

  18. The Statute of Frauds • Marriage • Promises not to be performed within One Year • What is the rationale for the rule? 18

  19. The Statute of Frauds • Marriage • Promises not to be performed within One Year • What is the rationale for the rule? • An aide-memoire? • Or a significant contract? 19

  20. The Statute of Frauds • Marriage • Promises not to be performed within One Year • What is the rationale for the rule? • An aide-memoire? • Or a significant contract? • Do you agree with Farnsworth? 20

  21. The Statute of Frauds • Marriage • Promises not to be performed within One Year • Land • 110(1)(d) “Tis the only thing worth fighting for, worth dying for”

  22. The Statute of Frauds • Marriage • Promises not to be performed within One Year • Land • Executor’s Assumption of Liability • Restatement § 110(1)(a) • No new consideration needed

  23. The Statute of Frauds • Marriage • Promises not to be performed within One Year • Land • Executor’s Assumption of Liability • Goods worth more than [$500] • Restatement § 110(2)(a) → UCC § 2-201

  24. Restatement § 110 ff, UCC § 2-201 • Marriage • Promises not to be performed within One Year • Land • Executor’s Assumption of Liability • Goods worth more than [$500] • Suretyship Agreements • Restatement § 112-14 24

  25. Suretyship Obligee Principal (obligor) 25

  26. Suretyship Obligee (promisee) Surety (promisor) Principal (obligor) 26

  27. Colonial Finance in Virginia

  28. MY LEGS Marriage Promises not to be performed within One Year Land Executor’s Assumption of Liability Goods worth more than [$500] Suretyship Agreements 28

  29. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • What does the Π have to assert to win in McIntosh?

  30. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • What does the Π have to assert to win in McIntosh? • Not terminable at will, but for a fixed term 30

  31. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • What does the Π have to assert to win in McIntosh? • Not terminable at will, but for a fixed term • What that term might be • Gee, let’s say one year 31

  32. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • What does the Π have to assert to win in McIntosh? • Not terminable at will, but for a fixed term • What that term might be • Not unenforceable by virtue of the Statute of Frauds 32

  33. Do salesmen have tenure? Ron Popeil and the Veg-o-matic 33

  34. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • I ask you to work for me on January 10, 2010, with the expectation that the work will be completed by January 10, 2011 34

  35. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • I ask you to work for me on January 10, 2010, with the expectation that the work will be completed by January 10, 2011 • Restatement § 130 35

  36. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • I ask you to work for me on January 10, 2010, with the expectation that the work MIGHT be completed by January 10, 2011 • Restatement § 130 36

  37. How does the one-year rule work? • “Not to be performed within one year from the making thereof” • I insure your house against fire for five years without a writing. Three years have elapsed. • Restatement § 130, illustration 1. 37

  38. McIntosh • What is estoppel? And promissory estoppel?

  39. McIntosh • Restatement § 139 • Promisor should expect reliance • Promisee does rely • Non-enforcement would be unjust • Cf. Restatement § 90

  40. McIntosh • What kind of recovery for McIntosh?

  41. Was McIntosh a proper case for estoppel? What do you think would have happened if McIntosh had asked for a written contract?

  42. Was McIntosh a proper case for estoppel? If you’re Murphy, how do you react to the decision? 42

  43. Is land different? • What do real estate agents make you do if you want to buy a house?

  44. Is land different? • What do real estate agents make you do if you want to buy a house? • Written offers throughout • Closing

  45. What happened in Schwedes? Swan River MT

  46. What happened in Schwedes? • Sale by seller--No real estate agent

  47. What happened in Schwedes? • Sale by seller--No real estate agent • What, if anything, constituted promisee reliance?

  48. What happened in Schwedes? • Sale by seller--No real estate agent • What, if anything, constituted promisee reliance? • Securing financing?

  49. What happened in Schwedes? • Sale by seller--No real estate agent • What, if anything, constituted promisee reliance? • Securing financing? • The offer to send the purchase price?

  50. What happened in Schwedes? • Sale by seller--No real estate agent • What, if anything, constituted promisee reliance? • Securing financing? • The offer to send the purchase price? • Psychic reliance?

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