The chapter reading explores four categories of exemptions to the statute of frauds. These are: partial performance, admission, exceptions under the UCC, and promissory estoppel. Out of the four types of exceptions listed in the chapter, California recognizes only two kinds of fraud.
California recognizes the partial performance and promissory estoppel. Partial performance is an exception that recognizes that a contract party who has performed a significant portion of his or her duties as highlighted by an oral agreement before the other party contests the legitimacy of the oral agreement is still eligible to the amount they are due for that share of the goods.
California also recognizes promissory estoppel as a significant exception to the statute of fraud. Promissory estoppel states that of one party has incurred costs necessary for fulfilling part of the oral agreement; the other person cannot claim that the contract is unenforceable under the statute of frauds since they were completely aware of the contact and allowed the other party to incur costs.
Added Exceptions
Added Exceptions
The exception that California should add to the existing exceptions is the exceptions under the UCC for customized goods. Oral contracts for the sale of customized goods should be enforced because customized goods are not likely to be sold to the general audience. In the event that one party backs out of a contract, the other party should be compensated for the negated contract and the reasonable costs incurred. UCC allows oral agreements for customized goods to be enforced to safeguard the innocent party from bearing the cost of a cancelled contract.
