Statute of Frauds

Statute of Frauds does not apply without a written contract/document

The Statute of Frauds can be enforceable in certain contracts. The agreement must be in writing and must be signed by both the parties in a contract.

When a contract is writing, it is easy to prove what the parties agreed to and will act as evidence to show the agreed upon terms. Other forms of evidences can be invoices, emails, and other scribbles that are signed by a party.

Contracts which need to be writing, for them to be enforceable are:

  1. Contracts for sale, lease or mortgage of a land.
  2. Contracts that cannot by their terms be performed within one year from the date the contract was signed.
  3. Contracts for the sale of goods valued at $500 or more.
  4. Contracts for promises made for marriage.
  5. Contracts where someone takes the responsibility of someone else’s debts.
  6. Contracts by executors and administrators

In order to satisfy Statute of Frauds, the written document must contain:

(1) The identity of the parties to the agreement.
(2) Identification of the subject matter of the agreement.
(3) The terms and conditions of the agreement.
(4) Identification of the consideration.
(5) The signature of the party who is being sued.

Statute of Fraud can also act like a defense for an agreement, and the contract can be cancelled for a party pleading Statute of Fraud.

Categories: General