Question

Advice Columnist: I'm writing to warn others about unsigned contracts. I wish someone had warned me to get this contract in writing. This is what happened. In June of 2017, I paid $450 to reserve a reception hall for our 50th wedding anniversary, which is July 23, 2018. On January 20, 2018, my husband passed away. I phoned the reception hall immediately and told them what had happened and requested a refund. This was a good six months before the date. They told me they normally do not refund down payments, and weren't sure what could be done in case of death. They promised to get back to me. Weeks passed and I heard nothing, so I sent a letter. They then called and said if the hall was rented by someone else on that day, I might be able to get my money back. It is now three months past the date, and I have not been contacted by anyone, so I guess that means I won't be getting a refund. Please warn your readers who reserve months in advance to ask, "What happens in case of death?" And get it in writing-Maxine in Burnsville, Minn. What are the contract issue(s) is (are) involved if this hall was vacant on July 23 a. Statute of Frauds in regard to time frames b. Statute of Frauds in regard to dollar amounts Using the same Advice Columnist letter, what if the cost of the reception hall was $650 rather than $450 and the wedding anniversary was May 23, 2018 rather than July 23

a. Statute of Frauds in regard to time frames b. Statute of Frauds in regard to dollar amounts c. Parol evidence issue d. B and C e. None of the above

Answer 1

To answer this question there are lot of concepts to be cleared.First we have to understand, what is statute of Frauds regarding time frames and dollar amounts.

Statute of Frauds:
Basis of most modern laws requiring that certain promises must be in writing in order to be enforceable; it was passed by the English Parliament in 1677. In the United States, although state laws vary, most require written agreements in fix types of contracts which are covered in this lesson.

Usually, oral contracts are enforceable. However, the Statute of Frauds requires that six kinds of contracts be put in writing in order to be enforceable. If a contract falls into one of these categories, the contract is “within the statute” and must be in writing. If the contract does not fall into one of these six categories, the contract is “outside the statute” and does not need to be in writing.

The six categories of contracts that must be written down in order to satisfy the Statute of Frauds are:

1. contracts for the sale of an interest in land,
2. contracts for the sale of goods for $500 or more (under the U.C.C.),
3. contracts in consideration of marriage,
4. contracts that cannot be performed within one year of the contract being made,
5. contracts of suretyship,
6. contracts where an estate executor agrees to pay estate debts from his personal funds.

Any kind of writing will be adequate to satisfy the Statute of Frauds. However, the writing must contain the essential terms of the contract, including who the contracting parties are, the subject matter of the contract and the terms and conditions of the agreement. Also, the writing must be signed by the party to be charged (i.e., the contract must be signed in order to hold a party liable to it). If any party to the contract does not sign it, that party cannot be held liable under the contract.  

Parol Evidence Rule: A substantive rule of contract of law under which a court will not admit evidences of the parties',prior negotiation ,prior oral or written agreements or contemporaneous oral agreements if that evidence contradicts.

As per the above definations, on the death of her husband she is unable to complete her commitment that was oraly given,this comes under exceptions of Statuate Of Frauds. If the contract was of $650 instead of $450, she is liable of refund from the reception hall. That doesnt mean what the date of the anniversary is, as it stated that if the contracts that cannot be performed within one year,but here is an exeption that she is unable to perform according to contract as her husband has died, this comes under exeption.

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