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Statute of Fraud Questions

Statute of fraud refers to the statutory provisions which require that certain contracts must be written in order to be valid contracts that can be enforceable. Developed in England in the 17th century, the basis of the statute was to limit the amount of fraudulent claims in unwritten contracts. Most generally, the statute applies to real estate sales and anything that involves a cost of $500 and over. Below are just a few of the more commonly asked questions regarding the statute of frauds.

What voids an oral contract in MI?.

While most contracts can be enforced under the contract law (statute of frauds), there are certain contracts that must be in writing in order to be enforced. Below are the requirements for Michigan. This is a list of contracts that must be in writing to be enforced:

Per Michigan statute of frauds:

Contracts involving the sale or transfer of land;
  • Contracts to answer for the debt or duty of another;
  • Contracts that, by its terms, cannot be completed within one year. (Please note that the fact that a contract is not completed within one year does not mean that it is voidable under a statute of frauds. For the statute to apply, the actual terms of the contract must make it impossible for performance to be completed within one year); and
  • Certain contracts for the sale of goods, under the Uniform Commercial Code.

Why does the Statute of Frauds apply only to certain types of contracts? Why doesn't it include all of the contracts?

The statute of frauds applies to only certain types of contracts due to the specific writing in reference to real estate transactions. However, oral contracts for services are permitted due to the nature of the agreements can be changed and it would be inconvenient to rewrite the contract every time the terms were changed. The law acknowledges the need for written contracts pertaining to real estate and certain contracts due to the credibility of a written agreement blocking a possible conflict between those who enter into the contract.

What are the differences of the Parole evidence rule and the statute of frauds between states?

The Parole Evidence Rule utilized when there is a dispute between two parties regarding a breach of contract. While both parties agree that the contract does exist, one party will argue that there were verbal agreements combined within the contract that were not listed in the "four corners" of the written portion that should be considered while interpreting the contract. Usually the Parole Evidence Rule denies this form of evidence and states that only the writing within the 4 corners of the contract is a valid part of the contract. Verbal agreements or other written portions of the original agreement that are not attached to the contract will be excluded.

As for the Statute of Frauds, contracts that involve the sale of real estate or anything costing $500-$1,000, or any contractual agreement that cannot be satisfied within one year must be written in order to be a valid contract. Oral contracts cannot be used for the sale of real estate or anything that costs over $500.

When entering into a contract, you should know the laws regarding the validity of the contract. Certain contracts are not deemed invalid unless they are in writing. Before you enter into a contractual agreement you should ask an Expert for legal insight on contracts and what would work best for you.
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Recent Statute of Frauds Questions

  • I signed a one year lease that allowed me to have four dogs

    I signed a one year lease that allowed me to have four dogs on the property. This was so stipulated in the lease. I have come to find out that the local code of Oakland Park, FL only allows three dogs.

    As I understand, a lease is a two party binding contract and that there are essentially four corners to a contract: offer, acceptance, legality and consideration. He offered; I accepted, and paid him first, last and security, totaling $4200 plus another $550 for half the cost of completing the fence for dog secutity. However, I do not believe the contract was legal, as he stipulated I could keep four dogs and that is expressly forbidden by local code.

    I had no knowledge of this code until recently informed by a local deputy.

    Your thoughts?

    Thank you,

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    ***-***-****
  • Question 1 A partnership typically is created: If the

    Question 1
    A partnership typically is created:

    If the managing partner files appropriate papers with the secretary of state.

    If one or more persons or entities engage in an ongoing business activity for profit.

    Upon the issuance of stock to the partners.

    Once there is a valid written partnership agreement.


    Question 2
    Which of the following are protected classes under Title VII of the 1964 Civil Rights Act?

    Race, national origin, and sex.

    Race, national origin, and political affiliation.

    Race, religion, and sexual orientation.

    Religion, color, and prior welfare eligibility.

    Question 3
    Which of the following constitutes illegal discrimination pursuant to Title VII of the Civil Rights Act?

    a.A shoe store refuses to hire Hispanics as employees.

    b.A sporting goods store excludes applicants over the age of 40.

    c.A large department store refuses to hire anyone in a wheel chair.

    d.None of the above.

    Question 4
    1.Which statement is FALSE about the National Labor Relations Act (NLRA)?

    a.Employers can commit ULPs (unfair labor practices) by using inflammatory "scare tactics" and coercive techniques against the employees to prevent unionization.

    b.Secondary boycotts of companies doing business with a company that the union is striking are permissible so as to enhance the union's power against the typically more powerful employer.

    c.Supervisors and managers are not covered by the NLRA.

    d.Both the employer and the union have a legal duty to bargain in good faith on the terms and conditions of a contract.

    Question 5
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    Formal

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    Bilateral

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    A promise for a promise is an example of:

    A bilateral contract

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    Question 7
    Which of the following is a true statement?

    A.Goods are defined as only intangible personal property such as stocks, bonds, money, and patents.

    B.The Uniform Commercial Code does not have any Statute of Frauds provisions.

    C.A fixture is personal property affixed to real property but which can be readily removed.

    D.The Uniform Commercial Code’s implied warranty of merchantability is only imposed on merchants.

    Question 8
    Which of the following most likely is illegal discrimination pursuant to Title VII of the federal Civil Rights Act?

    a.Not considering applicants for manufacturing sales positions because of their religious beliefs in incarnation.

    b. Not hiring applicants for sales positions who are smokers of tobacco products.

    c. Not hiring gay, lesbian, bisexual, or transgender employees.

    d. Not hiring candidates whether male or female who are parents when extensive travel is involved with the position.

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    Which of the following is FALSE about contracts pursuant to the Uniform Commercial Code?

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    b. A merchant's firm offer can be valid and enforceable even without the payment of consideration.

    c. Additional terms in an acceptance will as a general rule not render the acceptance invalid.(True)

    d. The UCC requires as a general rule a writing for contracts for the sale of goods $500 or more in price.(True)

    Question 10
    1.Which of the following is a false statement?

    Pursuant to the UCC, an agreement modifying a contract generally needs no new consideration to be binding.

    An oral contract for goods that are specially manufactured for a particular buyer may be enforceable under the UCC even without a writing.

    The Convention on Contracts for the International Sale of Goods closely follows the Uniform Commercial Code of U.S. law. True

    Pursuant to the Uniform Commercial Code, a merchant who sells one type of good will be considered a merchant for any other type of good that he or she sells since a merchant is a merchant. True

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    A transaction in which two corporations combine such that afterwards only one of them still exists and owns all the assets previously owned by either corporation is best called a:

    Merger.

    Consolidation.

    Purchase of assets.

    Share exchange.

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    Under which of the following types of misrepresentation is the innocent party usually not able to rescind a contract?

    Fraud in the inducement.

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    Misrepresentation of law.

    Question 13
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    A sole proprietorship is a separate legal entity for U.S. tax purposes and thus the entity must file its own tax return.

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    I spoke with the CEO of the company and he is offering to refund her purchases since the inital discussion of her problem with their rep but wants to do it over the course of a 12 month period.
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