Apartment Development Worksheet by wgb15852

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									     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

2/16/2006             Class 17                    1
            Today is a great day to learn
             about the statute of frauds.




2/16/2006               Class 17            2
            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




2/16/2006          Class 17                 3
    What policies does this serve




2/16/2006        Class 17           4
    What policies does this serve
1. prevent fraud/perjury; problem, though,
   with over- and underinclusiveness




2/16/2006           Class 17                 5
    What policies does this serve
1. prevent fraud/perjury; problem, though,
   with over- and underinclusiveness
2. administrative/judicial efficiency




2/16/2006           Class 17                 6
    What policies does this serve
1. prevent fraud/perjury; problem, though,
   with over- and underinclusiveness
2. administrative/judicial efficiency
3. certainty for parties




2/16/2006           Class 17                 7
        Overall structure/approach
1. Is the K within S/F?




2/16/2006           Class 17         8
        Overall structure/approach
1. Is the K within S/F?
2. If so, has it met the requirements of S/F?




2/16/2006           Class 17                    9
        Overall structure/approach
1. Is the K within S/F?
2. If so, has it met the requirements of S/F?
3. If not, does it fall under an exception?




2/16/2006           Class 17                10
            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

2/16/2006                Class 17                         11
            2. If within S/F, has it met its
                     requirements?
1. written memorandum evidencing an
   agreement
2. identifying the parties and subject matter
3. containing material terms and conditions
4. signed by the party to be charged

If all of these requirements are met, then
     defense fails
2/16/2006                 Class 17             12
  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
2/16/2006            Class 17               13
            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

2/16/2006                Class 17                         14
     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.
2/16/2006               Class 17                    15
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.




2/16/2006             Class 17                   16
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.



2/16/2006           Class 17                17
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.



2/16/2006           Class 17               18
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.
11. 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.

2/16/2006             Class 17                 19
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."
2/16/2006           Class 17               20
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.



2/16/2006            Class 17               21
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.


2/16/2006           Class 17                 22
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.)

2/16/2006           Class 17                23
      Crabtree v. Elizabeth Arden
             Sales Corp.
             New York Court of Appeals
            305 N.Y. 48, 110 N.E.2d 551
                      (1953)

2/16/2006              Class 17           24
 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?
2/16/2006            Class 17               25
 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?

2/16/2006            Class 17              26
            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).

2/16/2006                   Class 17                27
 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?
2/16/2006            Class 17               28
 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?
2/16/2006            Class 17              29
      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?



2/16/2006            Class 17                30
        clause-specific exceptions
•   land
•   one-year provision
•   surety
•   2-201 (tomorrow)




2/16/2006            Class 17        31
            general exceptions
• next case




2/16/2006          Class 17      32
       Alaska Democratic Party v.
                 Rice
            Supreme Court of Alaska
             934 P.2d 1313 (1997)


2/16/2006            Class 17         33
 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?
2/16/2006            Class 17               34
 What happened at the trial court level?
 This appeal?

 Issue?

 Authorities/Rule?

 Application to facts in case?

 What policies does it further/ignore?

2/16/2006            Class 17              35
                   Application of s/f
1.    Is K within s/f?
2.    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
3.    If not, does it fall within an exception?
            (a)   clause specific exceptions
            (b)   general exceptions


2/16/2006                         Class 17            36
    § 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.

2/16/2006             Class 17               37
    § 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.

2/16/2006                   Class 17                         38
            Narrow estoppel




2/16/2006         Class 17    39
            Narrow estoppel
Comment f to §178 in first Restatement




2/16/2006          Class 17              40
            Narrow estoppel
Comment f to §178 in first Restatement
1. statement re: statute of frauds
   requirements




2/16/2006          Class 17              41
            Narrow estoppel
Comment f to §178 in first Restatement
1. statement re: statute of frauds
   requirements
e.g., There is a writing that satisfies s/f.
      This K isn’t subject to s/f.




2/16/2006             Class 17                 42
            Narrow estoppel
Comment f to §178 in first Restatement
1. statement re: statute of frauds
   requirements
2. promise re: statute of frauds
   requirements




2/16/2006          Class 17              43
            Narrow estoppel
Comment f to §178 in first Restatement
1. statement re: statute of frauds
   requirements
2. promise re: statute of frauds
   requirements
e.g., I will put this in writing.



2/16/2006          Class 17              44
     Broader promissory estoppel
• e.g., Alaska Democratic Party v. Rice;
  Restatement 139




2/16/2006           Class 17               45
            End of Class
   Friday 326-46




2/16/2006          Class 17   46

								
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