BU231 Chapter Notes - Chapter 10: Oral Contract, Miscarriage
Document Summary
The problem of deciding whether a contract is affected by the statute of frauds arises only when an otherwise valid contract has been made. The mere fact that a promise is in writing as required by the statute does not make the promise binding. Guarantee a conditional promise to pay only if the debtor defaults. Indemnity a promise by a third party to be primarily liable to pay the debt. Miscarriage an injury caused by the tort of another person (ex. by their negligence/fraud) Memories may fail over a long period and so parliament chose an arbitrary one-year limit. Where the obligations of one party can clearly extend beyond one year, the intention that the other should wholly perform within one year must be clear from the terms of the contract. Memorandums must contain all the essential terms of the contract, including the identity of the parties.
