The Statute of Frauds Discussion

This week’s Learning Outcomes:

After reading the materials, discussing the concepts, and completing the learning activity; students will be able to:

• Understand the importance of the Statute of Frauds and the Parol Evidence Rule
• Identify the contracts that are subject to the Statute of Frauds
• Explain the options that are available if a party cannot or will not perform
• Identify the excuses that justify a party not performing
• Identify and explain the remedies available for a breach of contract

This week’s learning outcomes relate to the following course outcome:

• Analyze contractual rights, obligations, liabilities, and remedies in the business environment.

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This week’s Learning Outcomes:
After reading the materials, discussing the concepts, and completing the
learning activity; students will be able to:
Understand the importance of the Statute of Frauds and the Parol Evidence Rule
Identify the contracts that are subject to the Statute of Frauds
Explain the options that are available if a party cannot or will not perform
Identify the excuses that justify a party not performing
Identify and explain the remedies available for a breach of contract
This week’s learning outcomes relate to the following course outcome:
Analyze contractual rights, obligations, liabilities, and remedies in the business
environment.
Major Concepts:
Statute of Frauds – This is a requirement that certain contracts must be writing to be
enforced.
Parol Evidence Rule – The rule governs the question of whether a party can introduce
evidence of a prior agreement to explain or modify a current contract.
Performance – This concept addresses the parties performance under the contract,
and it includes an examination of the concepts of substantial
performance and anticipatory breach.
Discharge – This concept defines when/how obligations and duties under a contract
can be terminated.
Remedies – This concept explains what the plaintiff can recover when there has been
a breach of contract.
Assigned Materials to Read/Watch:
Instructor Notes (see link below Overview)
Week 5 Introduction (see link below Overview)
Material Breach Summary (see link below Overview)
Saylor: Law for Entrepreneurs e-textbook:
Chapter 13 – Form and Meaning: Statute of Frauds, Parol Evidence, Legalities
Chapter 15 – Discharge of Contract Duties
Chapter 16 – Legal Remedies: Damages
Uniform Commercial Code – 2-201 Statute of Frauds
Electronic Signatures and Online Contracts
Summary of Contract Law, Statute of Frauds: click on link below, please
/content/enforced/375136-M_001041-01-2192/Business Law I (Week 5).pdf
Learning Activity W5
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Instructions
General Instructions for Learning Activities
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Read/watch all assigned materials listed for the week in the Course Content
Cite to assigned materials in all responses in Learning Activities
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Use only assigned materials to complete Learning Activities; do not use the internet unless otherwise
instructed
Include in-text citations and a Reference List for in-text citations
Write in correct, complete sentences, in paragraph format unless otherwise instructed
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Submit Learning Activities to Assignment Folder
Tips for Formatting and Structuring Analysis:
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Write in complete sentences in paragraph format.
Use in-text citations citing to relevant assignment materials.
Double space; 12-point Arial or Times Roman font.
Introductory Sentence: Begin with an introductory sentence or very brief paragraph that states your conclusion
to the questions asked.
Concluding Sentence: End the discussion with a concluding sentence or a very brief paragraph that summarizes
your conclusion/what you discussed.
Support Arguments and Positions: Please refer to the module in Content, “How to Support Arguments and
Positions”.
Learning Activity: due 11:59 pm ET, Thursday
Background: The GC owners have questions and need clarification about several contract concepts
and issues related to their new business. Specifically, they have questions about:
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the Statute of Frauds “writing requirement” and
electronic contracts
Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the
parties to the agreement, and the parties must be sufficiently identified. GC will be selling goods via
the internet, and the owners are wondering whether these electronic contracts are valid and
enforceable.
Background Facts You Need To Know: Company X, a company in Illinois, contracted via the
internet with Windows Bright, a small window washing business in Missouri to purchase 4 cases of
Shiny Lite window cleaning solution at $200 per case. Company X paid via the internet with a
company credit card. The contract stated that the 4 cases of Shiny Lite would be shipped to Company
X’s place of business in Illinois via UPS. Once UPS delivered the Shiny Lite, the contract required
Windows Bright to clean Company X’s windows.
Instructions
Winne and Ralph have asked you to prepare examples and explanations of the statute of frauds and
electronic contracts.
To respond to the GC’s questions and concerns, you must prepare a fact scenario and be prepared to
discuss the scenarios in a meeting with TLG and the GC owners.
A. Discuss whether the contract between X and Windows Bright is subject to the Uniform
Commercial Code Statute of Frauds.
B. Analyze and explain whether the internet electronic contract between X and Windows Bright
satisfies the “writing” requirements for the Statute of Frauds? If so, how and why?
Number each section as:
A.
B.