Question

Answer each question in at least 2, but no more than 5 sentences. This assignment will be graded for accuracy as well as grammar. Type the answers in this document, and upload to Blackboard.

1.         What is the Statute of Frauds?

2.         Why do certain contracts have to be written to be enforceable?

3.         Explain the one-year rule.

4.         What is a collateral promise?

5.         What effect does part performance have on the enforcement of an oral contract?

6          What is required to satisfy the writing requirement of the Statute of Frauds?

7          What is not admissible under the parol evidence rule?

8          What are the reasons for the parol evidence rule? What are some criticisms of these purposes?

Answer 1

Q1. Statute of frauds

A statute entails certain contracts to be documented in writing and signed by both the parties of contracts. The sole purpose is to prevent fraud and other injuries to the concerned parties. Examples where statutes apply sale or transfer of land and properties, contracts for the sale of goods worth certain amount or more.

Q2. In order to bind the parties of the contract, some agreement must be in writing. Written contracts are easily enforceable in a court of law as there are minutes of the details mentioned in the contract such as the offers, consideration and acceptance. Example of contracts to be in writing are the sale of real estate, agree to pay someone else debt, and lease agreement over one year.

Q3. One year rule.

One year rule is required under a statute of frauds where a contract cannot be honoured within a year must be documented in writing. The one year rule does not imply a contract should be completed within the year but it needs to be completed within a single year.

Q4. Collateral promise

Collateral promise denotes to an assurance to pay the liability of another that is auxiliary to an original promise. It is an assurance to response for the debt of another person in case of default by such person. It can be easily enforceable when it is in writing.

Q5. Under the doctrine of part performance, it allows a court of law to identify and enforce an oral contract despite the lack of any written evidence. It is an exception to the statute of frauds where written documents are needed. In general, without written evidence, a contract does not fall under the formal statute requirement as mentioned in the statute of frauds.

Q6. In order to contain the statute of frauds, the written document must encompass the following elements

1. The identity of the parties to the contract.
2. Documentation of the subject matter of the contract.
3. The terms and conditions of the agreement.
4. Finding consideration.
5. The signature of the parties relating to the contract.

Q7. Under parol evidence rule oral evidence is not admissible to contradict or differ the terms of a written agreement. It administers what sort of evidence parties to a disputed contract can bring to recognize the specific terms and conditions of a contract to contradict the written document. It prevents parties to identify oral discussions prior to or later after the written contract.

Q8. The main purpose of parol evidence rule is to prevents parties to a disputed contract to identify oral discussions prior to or later after the written contract made and to contradict it. The criticism concentrated at the confused conditions in its bases in policy, the variations in its preparation, and the whims in its application.