1. The Statute of Frauds CHAPTER 6 SLIDES: CONTRACTS

2. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 The Statute of Frauds Section 10.2 Special Rules and Formalities 10 Chapter Form of a Contract

3. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to explain the purpose of the Statute of Frauds (p. 206) How to explain the legal status of a contract that is not in writing (p. 206)

4. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to identify the elements that must be included in a written contract (p. 206) How to deal with contradictory and ambiguous terms in a written agreement (p. 207)

5. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to identify which contracts must be in writing (p. 208)

6. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Why It’s Important Understanding which contracts must be in writing, as well as the elements of a writing, will help you avoid pitfalls associated with the Statute of Frauds.

7. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Legal Terms breach of contract (p. 206) perjury (p. 206) Statute of Frauds (p. 206) memorandum (p. 206) goods (p. 213) real property (p. 213)

8. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing Elements of a Writing Evaluating Contradictory Terms Evaluating Ambiguous Clauses Section Outline

9. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts That Must Be in Writing Contracts to Pay Debts of Others Contracts to Pay Debts of Deceased Persons Contracts Requiring More Than a Year to Perform Section Outline

10. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts That Must Be in Writing, continued Contracts in Consideration of Marriage Contracts for Sale of Goods of $500 or More Contracts to Sell Real Property Section Outline

11. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question Why do you think some contracts should be in writing?

12. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing In early England, contracts did not have to be written to be fully enforceable. Persons could be brought to trial for breach of written or oral contracts.

13. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing A breach of contract is a wrongful failure to perform one or more promises of a contract.

14. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing Only persons who were not parties to the contract could be witnesses in court. To protect their friends or self- interests, witnesses often made false statements under oath in court.

15. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing Making such false statements is called perjury and is a crime.

16. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing To discourage such practices, Parliament passed the “Act for the Prevention of Frauds and Perjuries,” which became known as the Statute of Frauds. It required certain contracts to be in writing to be enforceable.

17. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Purpose of a Writing Most states now have a Statute of Frauds, which are state laws requiring that certain contracts be evidenced by a writing.

18. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What is a breach of contract?

19. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER A wrongful failure to perform one or more promises of a contract.

20. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question What elements should be present in a written contract?

21. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Elements of a Writing A memorandum is the written evidence of an agreement, need not be formal, and could be: a letter a sales slip an invoice a telegram words written on a check

22. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Elements of a Writing Elements of a writing should identify the following: PlaceDate Parties involved Subject matter

23. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Elements of a Writing Price and terms Intent of the parties Signature of the party who may be charged

24. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Evaluating Contradictory Terms If changes are made to a contract, the court will uphold the most recent terms. If handwritten changes are made to a typewritten or printed contract, the handwritten terms will prevail.

25. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Evaluating Contradictory Terms Typewriting prevails over printing. A dollar amount written in words will prevail over the amount written in figures.

26. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract 10.1 Contradictory Terms

27. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Evaluating Ambiguous Clauses When a written contract can be understood in different ways, the court will lean in favor of the party who did not draft the contract and against the one who drafted it.

28. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question What type of contracts do you think should be in writing?

29. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts That Must Be in Writing Every state has a law requiring that certain kinds of contracts be in writing to be enforceable.

30. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts to Pay Debts of Others A contract that one person makes with another to pay the debts of someone else must be in writing to be enforceable.

31. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts to Pay Debts of Deceased Persons An executor uses property from the estate to pay off any debts. If the estate lacks the money to pay the debt, the executor may promise to pay them with his or her own money.

32. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts to Pay Debts of Deceased Persons Such an agreement, which is actually an agreement to pay another’s debts, must be in writing to be enforceable.

33. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts Requiring More Than a Year to Perform All contracts must be written if they cannot be performed within one year of the date they are made. The year legally begins when the contract is made, not when performance is to start.

34. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts in Consideration of Marriage When two persons agree to marry, a written contract is not required. The promises they make to one another serve as the consideration for the contract.

35. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts in Consideration of Marriage However, if one person agrees to marry another person in return for a third person’s promise of money or property, then the agreement must be in writing.

36. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts for Sale of Goods of $500 or More A contract for the sale of goods for the price of $500 or more must be in writing to be enforceable.

37. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts for Sale of Goods of $500 or More Goods consist of movable items, including specially manufactured items. Furniture, books, livestock, cultivated crops, clothing, automobiles, and personal effects of any kind are considered goods.

38. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract For contracts requiring more than a year to perform, when does the year legally begin?

39. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER When the contract is made.

40. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Contracts to Sell Real Property Contracts for the sale of real property, which is land and anything permanently attached to it, must be in writing to be enforceable.

41. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 1. 1.What is the purpose of the Statute of Frauds? Section 10.1 Assessment

42. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned To prevent fraud and perjury Section 10.1 Assessment Answer

43. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 2. 2.What is the legal status of a contract that is not is writing? Section 10.1 Assessment

44. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned A contract that is supposed to be in writing, but which is not, is unenforceable. Section 10.1 Assessment Answer

45. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 3. 3.What are the elements that must be included in a written contract? Section 10.1 Assessment

46. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Place, date, parties, subject matter, price and terms, and intent of the parties. Section 10.1 Assessment Answer

47. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 4. 4.How are contradictory and ambiguous terms in a written agreement interpreted by a court? Section 10.1 Assessment

48. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned With contradictory terms, the court will uphold the most recent terms. The court will interpret ambiguous clauses against the person who wrote the contract. Section 10.1 Assessment Answer

49. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 5. 5.What contracts must be in writing? Section 10.1 Assessment

50. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Contracts to pay the debts of others and to pay the debts of deceased persons, contracts requiring more than a year to perform, and contracts in consideration of marriage. Section 10.1 Assessment Answer

51. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Contracts to sell real property and contracts for the sale of goods of $500 or more. Section 10.1 Assessment Answer

52. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 Assessment Critical Thinking Activity Statue of Frauds Does a writing have to be a formal document to satisfy the requirements of the Statute of Frauds?

53. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 Assessment Critical Thinking Activity Answer Statue of Frauds No. A writing does not have to be a formal document to satisfy the requirements of the Statutes of Frauds.

54. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 Assessment Legal Skills in Action History of the Law Clark and Fiona believe that the Statute of Frauds was originally intended as a criminal provision designed to catch con artists who prey on innocent, unsuspecting victims.

55. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 Assessment Legal Skills in Action History of the Law Write a report in which you explain the actual historical context in which the Statute of Frauds was first enacted in England.

56. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 10.1 Assessment Legal Skills in Action Answer History of the Law Reports will vary. The original purpose of the Statute of Frauds was to discourage the practice of fraudulent statements in court by witnesses when an oral contract has not been fulfilled.

57. The Statute of Frauds End of Section 10.1

58. The Statute of Frauds CHAPTER 6 SLIDES II

59. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.1 Performance and Agreement Section 11.2 Impossibility of Performance and Operation of Law 11 Chapter How Contracts Come to an End

60. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to identify when time is important in a contract (p. 224) How to distinguish between satisfactory and substantial performance (p. 226)

61. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to explain tender of performance (p. 228) How to explain how contracts can be discharged by agreement (p. 229)

62. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Why It’s Important Understanding when contracts come to an end will help you determine your legal rights and obligations in such situations.

63. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Legal Terms discharged (p. 224) performance (p. 224) complete performance (p. 224) reasonable time (p. 224) substantial performance (p. 226)

64. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Legal Terms tender (p. 228) legal tender (p. 229) mutual release (p. 230) accord and satisfaction (p. 230)

65. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Ending a Contract Discharge by Performance Time for Performance Satisfactory Performance Substantial Performance Tender of Performance Section Outline

66. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Discharge by Agreement Mutual Release Accord and Satisfaction Section Outline

67. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question How does a contract come to an end?

68. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Ending a Contract When contracts eventually end, they are said to be discharged. Contracts can be discharged by performance and by agreement.

69. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question What do you think “discharged by performance” means?

70. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Discharge by Performance Most contracts are discharged by performance, meaning the parties fulfill the terms of the contract by doing what they promised earlier.

71. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Discharge by Performance As long as all terms have been carried out properly and completely, the contract is discharged by complete performance.

72. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Time for Performance The time for completing a contract may be important to one or both of the parties.

73. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Time for Performance If the time is not stated in the contract and there is a question of performance, the courts will say the contract must be completed in a reasonable time.

74. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Time for Performance Reasonable time Will vary with the circumstances. Is defined as the time that is suitable, fair, and proper to the objective in view.

75. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Time for Performance A contract will specify that time is of the essence when it is a vital or essential element of the contract.

76. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract How are most contracts discharged?

77. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER By performance

78. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Satisfactory Performance When people perform services for others, the law requires that those services be done in a satisfactory manner.

79. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Satisfactory Performance Regardless of whether a contract specifically states the work be performed “in a satisfactory manner,” if one party believes the job is unsatisfactory, the court uses the reasonable person test.

80. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract 11.1 Reasonable Person Test The court asks, “Would a reasonable person consider the job to be completed in a satisfactory manner?” I’m a reasonable person. Has this job been completed in a satisfactory manner?

81. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reasonable Person Test The dispute will then be settled based on the answer to this question as determined by a judge or jury.

82. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Satisfactory Performance If one party agrees to perform services for another “to the other’s satisfaction,” then the other party must be satisfied to be bound to the contract.

83. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Substantial Performance An exception to the rule of discharging a contract by complete performance is substantial performance.

84. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Substantial Performance Substantial performance is slightly less than full performance. Someone who has fulfilled the major requirements of a contract in good faith, leaving only minor details incomplete, has substantially performed.

85. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Substantial Performance The courts will allow the person to recover the amount agreed upon under the contract, minus the cost of completing the job. Substantial performance is often applied to construction contracts.

86. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Tender of Performance A tender is an offer to do what you have agreed to do under a contract.

87. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Tender of Performance For example: If buying a car—offering to pay money to the seller at the agreed time If selling a car—offering to give the car to the buyer at the agreed time

88. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Tender of Performance If neither party has made tender, then neither party is in a position to bring suit against the other.

89. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Tender of Performance The person offering to pay the required amount of money must offer legal tender—U.S. coins or currency. Offering a check, even if it is certified, is not a valid tender of payment.

90. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Judy Anfinson agreed to create a garden landscape for Bill MacArthur “to his satisfaction” for $1,200.

91. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract When it was complete, Bill noticed Judy had planted some shrubs around the patio to which he was highly allergic. Is Judy required to replant the shrubs? Why or why not?

92. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER Yes. The contract requires Judy to complete the project to Bill’s satisfaction.

93. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question What do you think “discharged by agreement” means?

94. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Discharge by Agreement Contracts are created by mutual agreement and may be terminated by mutual agreement.

95. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Mutual Release A mutual release is an agreement between two parties to end an agreement. By mutual agreement, the contract no longer exists.

96. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Accord and Satisfaction A contract can also be discharged when one party to an agreement agrees to accept performance from the other party that is different from what was agreed upon in the original contract.

97. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Accord and Satisfaction In effect, one contract is substituted for another, which is known as accord and satisfaction. It is often used to settle an honest disagreement or unforeseen circumstances regarding an amount owed.

98. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 1. 1.What is a reasonable time for completing a contract? Section 11.1 Assessment

99. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.1 Assessment Critical Thinking Activity Discharge by Agreement Why does the court permit certain contracts to be discharged by accord and satisfaction?

100. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.1 Assessment Critical Thinking Activity Answer Discharge by Agreement It is used to settle an honest disagreement or unforeseen circumstances regarding an amount owed.

101. The Statute of Frauds End of Section 11.1

102. The Statute of Frauds CHAPTER 6 SLIDES III

103. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract What You’ll Learn How to explain situations in which the law will permit a discharge by impossibility (p. 231) How to identify discharges that occur by operation of law (p. 233)

104. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Why It’s Important Understanding when contracts are discharged by impossibility and by operation of law will help you know your legal rights and obligations in such situations.

105. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Involuntary Discharge Discharge by Impossibility of Performance Death or Illness in a Personal Service Contract Destruction of the Exact Subject Matter Illegality Section Outline

106. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section Outline Discharge by Operation of Law Wrongful Alteration Statute of Limitations Bankruptcy

107. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Some contracts come to an end despite what the parties intend or what they actually do. In these situations, the obligations that exist under the contract may also expire. Involuntary Discharge

108. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Two ways contracts are discharged: Involuntary Discharge 1.By impossibility of performance 2.By operation of law

109. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Pre-Learning Question How can contracts be discharged by impossibility of performance?

110. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract A contract that becomes legally impossible to perform generally may be discharged and both parties released from the obligation. Discharge by Impossibility of Performance

111. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Three situations in which the courts will allow a discharge for impossibility of performance are: Discharge by Impossibility of Performance 1.Death or illness that prevents the performance of a personal service contract

112. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Discharge by Impossibility of Performance 2.Destruction of the exact subject matter or the means for performance 3.Illegality, or situations in which the performance of a contract becomes illegal

113. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract The death or illness of a party to a contract may be an excuse for nonperformance only if the contract requires the personal service of the person who has died or become ill. Death or Illness in a Personal Service Contract

114. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract If the subject matter that is essential to the performance of the contract is destroyed through no fault of either party, then the contract is discharged. Destruction of the Exact Subject Matter

115. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract The destruction must occur after the contract is entered into, but before it is carried out. Destruction of the Exact Subject Matter

116. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Illegality A contract is considered void if its performance would be illegal at the time the agreement was initiated. The same general rule applies when performance becomes illegal after the contract has been initiated.

117. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract At times, the best interests of society demand that a contract be terminated. Under these circumstances, the law declares contract discharged by operation of law. Discharge by Operation of Law

118. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract These situations include: Discharge by Operation of Law When a wrongful alteration has occurred When the statue of limitations has run its course In cases of bankruptcy

119. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract All states have a law that specifies the time period in which legal action may be brought on a contract. This law is called the statute of limitations. Statute of Limitations

120. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Congress has the authority to pass bankruptcy laws, which are set procedures for discharging a debtor’s obligations. Bankruptcy

121. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Certain debts cannot be discharged under bankruptcy laws. Bankruptcy Education loans, during the first five years of the repayment period Taxes

122. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Bankruptcy Alimony Child support Maintenance payments

123. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Explain which method of involuntary discharge would be suitable in each of the following cases.

124. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract 1.Kimi added a “0” after the date March 3 to attempt to extend the date a contract was to be completed.

125. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER Wrongful alteration

126. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract 2.Kharim was hired to paint a mural for the middle school gym one week before a tornado ripped through the school.

127. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER Destruction of exact subject matter

128. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract 3.Between amassed credit card debt, car payments, and school loans, Bob, who could not find a well- paying job when he graduated from college, was totally unable to pay his bills.

129. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANSWER Bankruptcy

130. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 1. 1.When will the law permit a discharge by impossibility? Section 11.2 Assessment

131. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Death or illness of a party in a personal service contract, destruction of the exact subject matter of the contract, and when the contract becomes illegal Section 11.2 Assessment Answer

132. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 2. 2.When will the law permit a discharge by operation of law? Section 11.2 Assessment

133. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned When a wrongful alteration has occurred, when the statute of limitations has run its course, and in cases of bankruptcy Section 11.2 Assessment Answer

134. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 3. 3.What is the statute of limitations? Section 11.2 Assessment

135. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Specifies the length of time within which legal actions can be brought Section 11.2 Assessment Answer

136. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned 4. 4.What debts cannot be discharged in bankruptcy? Section 11.2 Assessment

137. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Reviewing What You Learned Education loans, taxes, alimony, child support, and maintenance payments. Section 11.2 Assessment Answer

138. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.2 Assessment Critical Thinking Activity Bankruptcy What is the legal philosophy behind the idea that certain contracts cannot be discharged in bankruptcy?

139. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.2 Assessment Critical Thinking Activity Answer Bankruptcy Answers will vary, but should recognize that certain debts are too important to society be discharged.

140. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.2 Assessment Legal Skills in Action Debts after Bankruptcy Your friend Charlotte says her parents are about to go to bankruptcy court. She believes that all of the family’s debts will vanish as a result of the bankruptcy proceedings.

141. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.2 Assessment Legal Skills in Action Debts after Bankruptcy Write a letter to your friend explaining that some of her family’s debts will remain even after declaring bankruptcy.

142. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract Section 11.2 Assessment Legal Skills in Action Answer Debts after Bankruptcy Letters will vary, but may include that educational loans, taxes, alimony, child support, and maintenance payments are not affected by a general discharge of debts in bankruptcy.

143. The Statute of Frauds End of Section 11.2

144. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract BREACH OF CONTRACT AND ITS REMEDIES Occurs when one party to a contract fails to perform the duties set out in the terms of the agreement. If you fail to fulfill your obligations by not carrying them out or by performing them in an incomplete or unsatisfactory manner, then you are said to have breached the contract.

145. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract ANTICIPATORY BREACH Sometimes parties to a ctonract notify the other party that they will not go through with the contract before the time for performance. This is called Anticipatory Breach. In this event, damages may be paid either actual or incidental (damages incurred by the buyer).

146. Understanding Business and Personal Law The Statute of Frauds Section 10.1 Form of a Contract EQUITABLE REMEDIES FOR BREACH SPECIFIC PERFORMANCE: Sometimes the remedy of money is not enough to repay a breach of contract. In that case, one party may sue for specific performance by asking the court to order the other party to do specifically what he or she originally agreed to do. INJUNCTION: This is when a court order prevents a party from performing an act of some sort. It may be temporary or permanent.