Which of the following is an explicit exception to the Statute of Frauds rules in NY?

Which of the following is an explicit exception to the Statute of Frauds rules in NY?

• A. When buyer has part performance
• B. NY includes lifetime contracts
• C. Goods accepted by buyer, custom-made goods, merchants' confirmatory memo (with no rejection within 10 days)
• D. Leases of one year or less

Answer: (D)

In New York, the Statute of Frauds requires a writing for certain contracts, but there are explicit carve-outs. A lease of goods for one year or less is outside the writing requirement, so it’s enforceable without a written contract. That makes leases of one year or less an explicit exception to the Statute of Frauds rules in NY. Other common exemptions exist under the UCC for sales of goods—for example, specially manufactured goods, situations where the goods have been accepted or paid for, or certain merchant confirmations—but the one-year-or-less lease rule is the clear explicit exception described here.

In New York, the Statute of Frauds requires a writing for certain contracts, but there are explicit carve-outs. A lease of goods for one year or less is outside the writing requirement, so it’s enforceable without a written contract. That makes leases of one year or less an explicit exception to the Statute of Frauds rules in NY.

Other common exemptions exist under the UCC for sales of goods—for example, specially manufactured goods, situations where the goods have been accepted or paid for, or certain merchant confirmations—but the one-year-or-less lease rule is the clear explicit exception described here.