Class 17, Thursday, Feb. 16

1. Class 17, Thursday, Feb. 16 Announcements one handout today—statute of frauds worksheet Friday 326-46 Today’s agenda Statute of frauds Crabtree v. Elizabeth Arden Winternitz v. Summit Hills Alaska Democratic Party v. Rice Class 17

2. Today is a great day to learn about the statute of frauds. Class 17

3. Statute of Frauds • England, 1677—”An Act for prevention of frauds and perjuries” • In U.S., every state has adopted some version of S/F Class 17

4. What policies does this serve Class 17

5. What policies does this serve • prevent fraud/perjury; problem, though, with over- and underinclusiveness Class 17

6. What policies does this serve • prevent fraud/perjury; problem, though, with over- and underinclusiveness • administrative/judicial efficiency Class 17

7. What policies does this serve • prevent fraud/perjury; problem, though, with over- and underinclusiveness • administrative/judicial efficiency • certainty for parties Class 17

8. Overall structure/approach • Is the K within S/F? Class 17

9. Overall structure/approach • Is the K within S/F? • If so, has it met the requirements of S/F? Class 17

10. 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? Class 17

11. 1. Is it within S/F? • see p. 296 in casebook—reproduces 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 Class 17

12. 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 Class 17

13. 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 today’s second case Class 17

14. 1. Is it within S/F? • see p. 296 in casebook—reproduces 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 Class 17

15. 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. Class 17

16. 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. Class 17

17. 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. Class 17

18. 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. Class 17

19. 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. Class 17

20. 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." Class 17

21. 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. Class 17

22. 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. Class 17

23. 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.) Class 17

24. Crabtree v. Elizabeth Arden Sales Corp. New York Court of Appeals 305 N.Y. 48, 110 N.E.2d 551 (1953) Class 17

25. 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? Class 17

26. 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? Class 17

27. 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). Class 17

28. 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? Class 17

29. What happened at the trial court level? What happened on appeal? Issue? Authorities/Rule? Application to facts in case? What policies does it further/ignore? Class 17

30. Part performance exception • Why doesn’t the part performance exception apply in this case? • How does this court get around this technical limitation of the part performance exception? Class 17

31. clause-specific exceptions • land • one-year provision • surety • 2-201 (tomorrow) Class 17

32. general exceptions • next case Class 17

33. Alaska Democratic Party v. Rice Supreme Court of Alaska 934 P.2d 1313 (1997) Class 17

34. 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? Class 17

35. What happened at the trial court level? This appeal? Issue? Authorities/Rule? Application to facts in case? What policies does it further/ignore? Class 17

36. 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 Class 17

37. § 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. Class 17

38. § 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. Class 17

39. Narrow estoppel Class 17

40. Narrow estoppel Comment f to §178 in first Restatement Class 17

41. Narrow estoppel Comment f to §178 in first Restatement 1. statement re: statute of frauds requirements Class 17

42. 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 isn’t subject to s/f. Class 17

43. Narrow estoppel Comment f to §178 in first Restatement • statement re: statute of frauds requirements • promise re: statute of frauds requirements Class 17

44. 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. Class 17

45. Broader promissory estoppel • e.g., Alaska Democratic Party v. Rice; Restatement 139 Class 17

46. End of Class Friday 326-46 Class 17