3 Extent of performance

Contracts can be classified as either executed or executory, according to whether or not they have been completed. Many contracts are performed almost immediately; others require days, months, or years to complete. Many life insurance contracts are not completed for decades.

Executed contracts. An executed contract is one that has been fully performed. Both parties have done all they promised to do.

Executory contracts. An executory contract is one that has not been fully performed. Something as agreed upon remains to be done by one or both of the parties.

Vocabulary

real property недвижимость

assignee 1) правопреемник; 2) цессионарий;

3) уполномоченный; агент; назначенное лицо

valid contract законный контракт

voidable contract оспоримый договор

void contract недействительный договор

express contract положительно выраженный договор

contract under seal договор за печатью

implied contract договор на основе конклюдентных действий; подразумеваемый договор

quasi contract [‘кwa:zi] частичный контракт

formal contract оформленный договор; формальный договор

simple contract простой договор, договор не в форме документа за печатью, неформальный договор

executed contract договор с исполнением в момент заключения

executory contract договор с исполнением в будущем

Text 3 The Statute of Frauds

An important purpose of business law is to protect and assist persons in their business dealings. One such way is to create awareness that certain types of agreements be evidenced by a signed writing in order to be enforceable. A writing is a more reliable proof of an executory agreement than is oral testimony based on memory. Also, a writing is not affected by the death or absence of witnesses. In addition, a writing helps to prevent dishonest persons from intentionally misrepresenting the facts and it prevents honest but forgetful persons from innocently doing so.

Years ago, injustices arising from the failure of memory or from intentional misrepresentations were frequently found in cases involving certain kinds of important oral contracts. Sometimes parties would lie under oath — although perjury is a crime, it was difficult to prove. The Statute of Frauds and Perjuries required that certain agreements be in writing and be signed by the party against whom the contract was to be enforced in court: the defendant in the action. Now the name statute of frauds is used to designate statutes, which require more certain contracts to be evidenced by a signed writing in order to be enforceable in court.

Thus, you should always get the other party’s signature on important contracts. Note that sometimes one party will wisely postpone signing to gain more time to think about the deal.

The statute of frauds does not prevent the voluntary performance of oral agreements that should have been in writing. It has no effect on oral agreements which have been fully performed. After all, contracts subject to the statute are not illegal if oral; they are simply not enforceable. Courts will not enforce oral contracts when the statute of frauds requires that they be in writing.

Vocabulary

dealings деловые отношения

Statute of Frauds закон, требующий, чтобы контракт имел письменную форму с подписью ответчика

perjury лжесвидетельство

voluntary performance добровольное исполнение

to misrepresent искажать

to postpone откладывать

Text 4 What Contracts Are Subject to the Statute of Frauds

To be enforceable under the Statute of Frauds, six important types of executory contracts must be in writing and signed by the party against whom the contract is to be enforced. As an alternative, the contract must be provable by some other writing, such as a letter signed by such party. Obviously, since either party might later want to sue the other in case of breach, good business practice calls for both parties to sign.

Contracts subject to the Statute of Frauds include those to:

1 buy and sell goods for a price of $500 or more;

2 buy and sell real property or any interest in real property;

3 do something that cannot be performed within a year;

4 pay the debt or answer for a legal obligation of another person;

5 give something of value in return for a promise of marriage;

6 be personally liable for a debt of an estate of someone who has died.

1 A Contract for the Sale of Goods for $500 or More

To be enforceable, a contract for the sale of goods (tangible personal property) for $500 or more would usually have to be a signed writing or a signed agreement. The writing would need to be signed by the person against whom enforcement was sought.