978-0134004006 Chapter 14 Case

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Chapter 14
Statute of Frauds and Equitable Exceptions
VI. Answers to Critical Legal Thinking Cases
14.1 Statute of Frauds
No, Hoffman and Frey do not win. Pursuant to the Statute of Frauds, an agreement for the sale of real
property is invalid unless the agreement or some note or memorandum thereof is in writing and
subscribed by the party to be charged. Failure to comply with the Statute of Frauds renders an oral
agreement unenforceable both in an action at law for damages and in a suit in equity for specific
14.2 Guaranty Contract
No, the Wests are not liable on the guaranty contract. It is well settled that an agreement to guarantee the
debt of another must be in writing. In this case, the lower court found that the bank reasonably relied on
Mr. West’s statements and applied the doctrine of equitable estoppel to find that the Wests were liable
under the guarantee. The Supreme Court of Idaho, however, held that the bank could not have relied on
(Supreme Court of Idaho)
14.3 Sufficiency of the Writing
No, Knight is not correct; the writing was sufficient to satisfy the Statute of Frauds. The terms that are
VII. Answer to Ethics Case
14.4 Ethics Case
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performance, the part performance exception applies. Because of the doctrine of part performance, the
oral contract is enforceable even though it is not in writing. The daughter probably acted ethically in
1988 Del. Lexis 217 (Supreme Court of Delaware)

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