Contracts: Statute of Frauds: Modification

• Statute of Frauds applies to a modification only if the contract as modified (not the original contract) falls within the Statute of Frauds.

• Tenant rents an apartment under a 9-month lease. T claims that L later agreed to extend the term of the lease to 3 years. This modification is within the Statute of Frauds because the contract, as modified, is for a 3-year lease.

• Heidi Klum has a written contract to buy 60 bottles of shampoo for $10 each from Tres Emme. They later agree to make it 40 bottles instead. The modification is not within the Statute of Frauds because the contract, as modified, involves a sale of goods for less than $500. No writing is required to enforce the modification.

• Same facts as above, except that the original written contract prohibits oral modification. Here, the modification would have to be in writing. Article 2 lets the parties create a private statute of frauds.

• Sesame Street employs Big Bird for 9 months starting today for $40,000. Their written contract prohibits oral modification. Big Bird & Sesame Street orally agree to modify the contract to make it 10 months starting today for $50,000. The oral modification is effective, because under the common law of contracts, clauses that prohibit oral modifications are not enforceable. Under the common law, parties cannot require that oral modifications be in writing.