Statute of Frauds

A Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing and signed by the parties involved in order to be enforceable, primarily to prevent fraud and misunderstandings in significant transactions.

• Context:
  • It can (typically) apply to contracts involving the sale of land, agreements that cannot be performed within one year, promises to pay someone else's debt, and contracts for the sale of goods over a certain value (commonly $500).
  • It can (often) serve as a defence in breach of contract cases, where one party argues that the lack of a written contract renders the agreement unenforceable.
  • ...
  • It can range from being an Evidentiary Statute of Frauds to being a Cautionary Statute of Frauds.
  • ...
  • It can vary slightly by jurisdiction, with different states in the U.S. having their own specific statutes that outline the contracts covered and any exceptions.
  • It can also include provisions for modern transactions, recognizing electronic signatures and digital contracts as valid under the statute in many cases.
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• Example(s):
  • A Real Estate Sale, e.g.: a contract for the sale of a house that must be in writing and signed by both parties to be enforceable under the Statute of Frauds.
  • A Debt Payment Agreement, e.g. : a promise made by an executor to pay the debts of a deceased person using their own funds, which must be in writing to be legally binding.
  • A Long-term Lease,
  • A Marriage Contract,
  • ...
• Counter-Example(s):
  • A Verbal Agreement, e.g.: an oral agreement for a service that can be completed within a month, which is not covered by the Statute of Frauds and can be enforceable even if not written.
  • A Handshake Deal,
  • A Statute of Limitations.
• See: Contract Law, Uniform Commercial Code, Parol Evidence Rule, Written Contract, Electronic Signatures.

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References

2024

• (ChatGPT-OpenAI, 2024a) ⇒ Prompt: Summarize the concept Statute of Frauds in 1- 2 paragraphs. ChatGPT (model:gpt-4o). Retrieved: 2024-09-01.
  • QUOTE: The "Statute of Frauds" is a legal doctrine originating from English common law, which mandates that certain types of contracts must be in writing and signed by the party to be charged, in order to be enforceable. This principle aims to prevent fraud and perjuries in the enforcement of agreements that involve significant obligations. Typical contracts that fall under the Statute of Frauds include those for the sale of real estate, contracts that cannot be performed within one year, agreements to pay someone else's debt, and contracts for the sale of goods over a certain value, among others.

    By requiring a written agreement, the Statute of Frauds provides clear evidence of the contract's terms and the parties' intentions, which can help resolve disputes and misunderstandings. If a contract that should be in writing under this statute is only agreed upon verbally, it generally cannot be enforced in a court of law. Exceptions to this requirement sometimes exist, such as cases involving partial performance or reliance, where fair and equitable outcomes necessitate enforcement despite the lack of a written contract.

2024b

• (Law Cornell, 2024) ⇒ https://www.law.cornell.edu/wex/statute_of_frauds Retrieved: 2024-09-01.
  • QUOTE: Statute of frauds is a statute requiring certain contracts to be in writing and signed by the parties bound by the contract. The purpose is to prevent fraud and other injury. The most common types of contracts to which the statute applies are contracts that involve the sale or transfer of land, (see: real estate transactions), and contracts that cannot be completed within one year.

2024c

• (Chen et al., 2024) ⇒ James Chen, Eric Estevez, and Michael Rosenston (2024). Statute of Frauds: Purpose, Contracts It Covers, and Exceptions. In: Investopedia -- Laws & Regulations.
  • QUOTE: The Statute of Frauds is a legal doctrine requiring that certain types of contracts be in written form. The most common contracts covered by the Statute of Frauds include the sale of land, agreements involving goods worth $500 or more, and contracts lasting one year or more.

    The purpose of the Statute of Frauds is to prevent fraud or other injury. These purposes are often described as being evidentiary and cautionary. The evidentiary function of the Statute of Frauds is to provide documentation that a legal, binding agreement exists. The cautionary function of the Statute of Frauds is meant to make each party more intent, serious, and deliberate in their transacting.

2024d

• (Aaron Hall,2024) ⇒ The Statute of Frauds: Contracts That Must Be in Writing. Last Updated: May 27, 2024.
  • QUOTE: The Statute of Frauds requires certain contracts to be in writing to prevent fraudulent claims and promote transparency in business dealings. Land sale agreements, warranties, marriage settlements, and agreements not to be performed within a year are among the contracts subject to this statute. Written agreements are also necessary for contracts lasting more than one year, collateral agreements, and indemnity agreements. Oral agreements are not enforceable under the Statute of Frauds, emphasizing the importance of a written record to validate contractual obligations. As you explore the nuances of the Statute of Frauds, you'll discover more about its exceptions, consequences of non-compliance, and the implications for contractual disputes.

2024e

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Statute_of_frauds Retrieved:2024-9-1.
  • A statute of frauds is a form of statute requiring that certain kinds of contracts be memorialized in writing, signed by the party against whom they are to be enforced, with sufficient content to evidence the contract.

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