25Contracts

Defenses: Statute of Frauds

The Statute of Frauds requires certain contracts to be evidenced by a signed writing to be enforceable. This week covers which contracts fall within the Statute (MY LEGS: Marriage, Year+, Land, Executor, Goods $500+, Surety), the writing requirement, and the exceptions (part performance, judicial admission, full performance, promissory estoppel).

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Learning Objectives

Identify the categories of contracts within the Statute of Frauds: marriage, cannot be performed within one year, land interests, executor promises, goods over $500 (UCC), surety/guaranty
Explain the writing requirement: signed by the party to be charged, identifying parties, subject matter, and essential terms
Apply the part performance exception for land contracts: possession + payment + improvements
Distinguish full performance from part performance as satisfying or excusing the writing requirement
Apply promissory estoppel to enforce oral contracts within the Statute when reliance makes non-enforcement unjust

Key Rules

Statute of Frauds (MY LEGS): Contracts within the Statute that must be evidenced by a signed writing: (M)arriage — promises in consideration of marriage; (Y)ear — contracts that cannot possibly be performed within one year from making; (L)and — contracts for the transfer of an interest in land; (E)xecutor — promises by executor to pay estate debts personally; (G)oods — UCC: sale of goods for $500+; (S)urety — promises to answer for the debt of another.
Writing requirement: Must be signed by the party against whom enforcement is sought; must identify the parties, subject matter, and essential terms. Multiple documents may be read together if they reference each other.
One-year rule: The question is whether it is POSSIBLE (not probable) to perform within one year. A lifetime contract is NOT within the Statute (could end by death within a year). A contract for exactly 13 months IS within the Statute.
Part performance (land): Takes an oral land contract outside the SOF when the buyer has (1) taken possession, (2) paid part/all of the purchase price, AND (3) made substantial improvements.
Full performance: When one party has fully performed under an oral contract, many courts enforce the other party's promise despite the SOF (especially for service contracts within the one-year provision).

Defenses: Statute of Frauds

Purpose

The Statute of Frauds prevents fraudulent claims about oral agreements by requiring a signed writing for certain important contracts. It is a DEFENSE — the defendant raises it to prevent enforcement of an alleged oral contract.

MY LEGS Mnemonic

| Letter | Category | Example | |--------|----------|--------| | M | Marriage | Prenuptial agreements | | Y | Year (cannot perform in 1 year) | 2-year employment contract | | L | Land (interests in real property) | Sale of house, lease > 1 year | | E | Executor (pay decedent's debts) | Executor promises personal payment | | G | Goods ($500+ under UCC) | Purchase of $600 laptop | | S | Surety (answer for another's debt) | Guaranteeing friend's loan |

The One-Year Rule

The question is NOT whether performance WILL take more than a year — it's whether it POSSIBLY COULD be performed within one year from the date of making.

| Contract | Within SOF? | Why? | |----------|------------|------| | 'Work for me for 2 years' | YES | Cannot possibly complete in < 1 year | | 'Work for me for life' | NO | Could die within 1 year (performance complete) | | 'Build this building' (no time stated) | NO | Possibly completable within 1 year | | 'Work for me for exactly 366 days starting today' | YES | Cannot be performed in < 1 year |

Exceptions

Part Performance (Land Contracts)

An oral land contract is enforceable if buyer has: 1. Taken possession of the property, AND 2. Paid part or all of the purchase price, AND 3. Made substantial improvements to the property

All three typically required (some jurisdictions require only two).

Judicial Admission

If the party against whom enforcement is sought admits in court that the contract exists, the SOF defense is waived.

Full Performance

Full performance by one side often makes the oral contract enforceable — especially for the one-year provision.

Promissory Estoppel

Some courts enforce oral contracts within the SOF when the promisee reasonably relied to their detriment and non-enforcement would be unjust.

Baby Bar Connection

The Statute of Frauds is frequently tested as a defense in contracts essays. The examiners expect you to: (1) identify that the contract falls within the SOF, (2) determine if a sufficient writing exists, and (3) analyze whether an exception applies.

Cases to Know

Crabtree v. Elizabeth Arden Sales Corp. (1953) — multiple writings may satisfy SOF if they reference each other
McIntosh v. Murphy (1970) — promissory estoppel may override the Statute of Frauds when reliance makes non-enforcement unjust

California Codes — Official Authority

The statutes SofAI ties to this topic. Use them as your IRAC rule block, then verify the current text on the official leginfo link.

Cal. Civ. Code §1624 — Statute of Frauds — contracts that must be in writingleginfo
Certain contracts are invalid unless they are in writing and signed — for example, contracts that cannot be performed within a year, suretyship promises, real-property agreements, and some others.
Exam hook: Statute of Frauds is a defense to enforcement, not to formation — raise it after a contract is otherwise formed.
Cal. Com. Code §2201 — Statute of Frauds — sale of goodsleginfo
A contract to sell goods for $500 or more generally must be in a signed writing, with special rules for merchants and for goods already made or accepted.
Exam hook: First decide UCC vs. common law (goods vs. services); the Statute of Frauds threshold and merchant rules turn on it.

Explore all California Codes

Baby Bar Relevance

The Statute of Frauds is a frequently tested defense on the Baby Bar. Always check: (1) Does the contract fall within MY LEGS? (2) Is there a writing? (3) Does an exception apply? This is mechanical but commonly missed when students forget to raise it.

Week 24 Back to Dashboard Week 26

Defenses: Statute of Frauds

Learning Objectives

Identify the categories of contracts within the Statute of Frauds: marriage, cannot be performed within one year, land interests, executor promises, goods over $500 (UCC), surety/guaranty

Explain the writing requirement: signed by the party to be charged, identifying parties, subject matter, and essential terms

Apply the part performance exception for land contracts: possession + payment + improvements

Distinguish full performance from part performance as satisfying or excusing the writing requirement

Apply promissory estoppel to enforce oral contracts within the Statute when reliance makes non-enforcement unjust

Key Rules

Statute of Frauds (MY LEGS): Contracts within the Statute that must be evidenced by a signed writing: (M)arriage — promises in consideration of marriage; (Y)ear — contracts that cannot possibly be performed within one year from making; (L)and — contracts for the transfer of an interest in land; (E)xecutor — promises by executor to pay estate debts personally; (G)oods — UCC: sale of goods for $500+; (S)urety — promises to answer for the debt of another.

Writing requirement: Must be signed by the party against whom enforcement is sought; must identify the parties, subject matter, and essential terms. Multiple documents may be read together if they reference each other.

One-year rule: The question is whether it is POSSIBLE (not probable) to perform within one year. A lifetime contract is NOT within the Statute (could end by death within a year). A contract for exactly 13 months IS within the Statute.

Part performance (land): Takes an oral land contract outside the SOF when the buyer has (1) taken possession, (2) paid part/all of the purchase price, AND (3) made substantial improvements.

Full performance: When one party has fully performed under an oral contract, many courts enforce the other party's promise despite the SOF (especially for service contracts within the one-year provision).

MY LEGS Mnemonic

The One-Year Rule

The question is NOT whether performance WILL take more than a year — it's whether it POSSIBLY COULD be performed within one year from the date of making.

California Codes — Official Authority

The statutes SofAI ties to this topic. Use them as your IRAC rule block, then verify the current text on the official leginfo link.

Cal. Civ. Code §1624 — Statute of Frauds — contracts that must be in writingleginfo

Certain contracts are invalid unless they are in writing and signed — for example, contracts that cannot be performed within a year, suretyship promises, real-property agreements, and some others.

Exam hook: Statute of Frauds is a defense to enforcement, not to formation — raise it after a contract is otherwise formed.

Cal. Com. Code §2201 — Statute of Frauds — sale of goodsleginfo

A contract to sell goods for $500 or more generally must be in a signed writing, with special rules for merchants and for goods already made or accepted.

Exam hook: First decide UCC vs. common law (goods vs. services); the Statute of Frauds threshold and merchant rules turn on it.

Explore all California Codes