From May 1992 through January 1993 plaintiff Bed, Bath & Beyond negotiated with defendant La Jolla Village Square Venture Partners (“La Jolla”) for a lease of retail space in La Jolla Village Square, a shopping center La Jolla was then in the process of building. In February 1993 La Jolla's legal representative in the negotiations presented plaintiff with four copies of a proposed written lease agreement and guaranty agreement to be executed by plaintiff and its guarantor, plaintiff's parent corporation. The cover letter accompanying these documents requested they be executed by plaintiff and its guarantor and returned to La Jolla's legal representative for "execution by the Landlord." Plaintiff signed the lease and its parent corporation signed the guaranty. The documents were then returned to defendant for execution. Defendant never executed the lease. In late March 1993 defendant informed plaintiff that it intended to lease the subject premises to Linens 'N Things, plaintiff's competitor. Prior to that communication plaintiff was unaware that La Jolla had been negotiating with Linens 'N Things. Plaintiff sued defendant for specific performance, breach of contract, and fraud and asked the court to enjoin defendant from proceeding with the Linens ‘N Things lease. Defendant moved for summary adjudication on plaintiff's claims and injunctive relief. The factual predicate to each of the causes of action is a valid, enforceable lease. The court granted defendant’s motion and plaintiff appealed.

Questions:

1. Was the lease between plaintiff and defendant subject to the statute of frauds?

2. What did the court look at to determine the one-year period?