MANGMT 3540 1st Edition Lecture 13 Outline of Last Lecture I. Illegal AgreementsII. Contracts Against public policyIII. Results of illegality or violations of public policyIV. IntroductionV. Sale of Interest in Land VI. Performance Beyond One YearOutline of Current Lecture VII. Collateral PromisesVIII. Promises Made in Consideration of MarriageIX. Sale of Goods Priced at $500 or moreX. WritingXI. Exceptions to the Statute of FraudsXII. Parol Evidence RuleXIII. UCC Variations—Sale of GoodsCurrent LectureI. Collateral PromisesA. DefinedThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i. A promise of guarantee made to a creditor to pay another’s debt only if the other does not pay.ii. There must be at least 3 parties involved and at least 2 promises B. Three Situations where the statute of frauds does not applyi. A promise to be jointly liable – on the same basis as the debtor—this is not a collateral promiseii. A promise to be primarily liable – liable instead of the debtor – this is not a collateral promiseiii. The main purpose rule: if the primary purpose of the guarantee is for personal benefit, an oral contract is enforceable; this is an exception to the ruleII. Promises Made in Consideration of MarriageA. Promise of Dowryi. A family’s promise made to a prospective husband to pay money or property upon his marriage to their daughterii. Dowries were traditional under early common law, but are common only in a few countries today, including IndiaB. Prenuptial agreementi. Promises made prior to marriage specifying how property will be divided in the event of divorceIII. Sale of Goods Priced at $500 or moreA. Sale of Goods Reviewi. Article 2 of the UCCii. Goods: things tangible and moveableiii. Applies to everyone, but has special rules for merchantsB. When Writing Required for Sale of Goodsi. When goods are priced at $500 or moreii. Not necessarily when valued at $500 or moreIV. WritingA. Two requirementsi. At common law (contracts for land and services), the writing must be sufficient to show the essential terms of the contractii. The contract must be signed by the party being sued (initials enough)B. What if no writing?i. Contract is considered unenforceableV. Exceptions to the Statute of FraudsA. Performancei. Complete performance by one party removes the contract from the statute of fraudsB. Admissions of termsi. When the defendant admits there is a contract, the contract is enforceable to the extent of the admissionVI. Parol Evidence RuleA. Definitioni. Evidence of prior or contemporaneous oral statements or agreements is inadmissible as evidence to alter the terms of a written contractB. Prior written agreementsi. Prior written agreements are also inadmissible to alter the contractC. Three exceptions and one cautioni. Extrinsic (outside) evidence is admissible to prove lack of reality of consentii. Extrinsic evidence is admissible to clear up an ambiguityiii. Extrinsic evidence is admissible to clarify incomplete contracts1. The parol evidence rules does not apply to modification because they come after the contract is madeVII. UCC Variations—Sale of GoodsA. Two UCC Variations of the Statute of Fraudi. Need only sufficient writing to show a contract  other may are filled in by the court1. Quantity and description of goods are often enough as to terms in a written agreement2. Signature or other authentication of writing sufficesii. Between merchants – one signature is enough if no objection by the other merchant within 10 days after receiptB. The UCC Parol Evidence Rulei. Applies only if parties intended document to be all