Contracls. Case No. 76 STATUTE OF FRAUDS/QUASI-CONTRACT Farash y. Sykes Datatron

Question

Contracls. Case No. 76 STATUTE OF FRAUDS/QUASI-CONTRACT Farash y. Sykes Datatronics. Inc. Court of Appeals 59 N.Y.2d 500, 465 N.Y.S.2d 917 (1983) FACTS: Plaintiff Max M. Farash (Farash), a building developer, entered an oral agreement to lease building space with Plaintiff Sykes Datatronics, Inc. (Sykes), a company that manufactures computer-related products. The term of the oral lease was more than a year. Prior to entering the lease, Farash had begun renovating the building. To accommodate Sykes' needs, Farash agreed to accelerate the renovation schedule and modify the renovation plans according to Sykes' specifications. reasons, the parties never signed a written contract and Sykes never oscugied the buildig Farash sued Sykes to recover lost rent and the value renovation work FIRST ISSUE: Where parties enter an oral contract that cannot be completed witn a year from when it is made and one party thereafter fails to perform the con other enforce the contract by seeking damages? can the DECISION: No, judgment for Sykes. REASONING: The Statute of Frauds requires a writing for the enforcemen agreement that cannot be completed within a year from when it was made. his case was oral and for a period longer than one year The lease in

Explanation / Answer

Answer (1) –

In US, Statute of Frauds - oral contract are valid for a period of less than one year

If the lease case would have been less than the period of one year’s time, then this case will be an obstacle for the lawsuit to make the decision. Because if the oral contract is less than one years time, then the lawsuit will consider it as the legal oral contract that comes under lawsuit and the decision needs to be made as per the term and conditions of the oral contract. So in such condition, the lawsuit needs to have different view for making the decision for this case, as Farash had a verbal contract with Sykes for rent and renovation. In this case the decision could be different and could be in favor of Farash. So Sykes may lose the case if it raised within the period of one year.

Answer (2) –

Statute of Frauds calls for written contract for property sale/ purchase

If the case is of sale of building instead of lease from Farash to Sykes, and the case is to transfer the property within three months of period. Then in this condition there should be a written contract agreement required between the Farash and the Sykes. Written contract agreement is being required as per the Statute of Frauds law in US for property sale and purchase. Unless we have a written agreement between the seller and the buyer, then the contract is not consider valid in US as per the STATUTE OF FRAUDS.

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