9.2 Contracts Required to be in Writing
3 min read•july 22, 2024
The sets rules for certain types of contracts that must be in writing to be enforceable. It covers agreements like long-term leases, land sales, and promises to pay others' debts. Understanding these categories is crucial for grasping when written contracts are legally required.
To comply with the Statute of Frauds, contracts must be written, signed by the party being held to it, and include key terms. This protects parties from fraudulent claims about oral agreements and ensures clarity in important transactions. Knowing these rules helps avoid unenforceable deals.
Statute of Frauds
Categories of contracts under Statute of Frauds
Top images from around the web for Categories of contracts under Statute of Frauds
Reading: What Is a Contract? | Introduction to Business View original
Is this image relevant?
Contracts - 1L Survival Guide - Research Guides at Florida State University College of Law ... View original
Is this image relevant?
Statute Of Limitations - Free of Charge Creative Commons Legal Engraved image View original
Is this image relevant?
Reading: What Is a Contract? | Introduction to Business View original
Is this image relevant?
Contracts - 1L Survival Guide - Research Guides at Florida State University College of Law ... View original
Is this image relevant?
1 of 3
Top images from around the web for Categories of contracts under Statute of Frauds
Reading: What Is a Contract? | Introduction to Business View original
Is this image relevant?
Contracts - 1L Survival Guide - Research Guides at Florida State University College of Law ... View original
Is this image relevant?
Statute Of Limitations - Free of Charge Creative Commons Legal Engraved image View original
Is this image relevant?
Reading: What Is a Contract? | Introduction to Business View original
Is this image relevant?
Contracts - 1L Survival Guide - Research Guides at Florida State University College of Law ... View original
Is this image relevant?
1 of 3
- Contracts impossible to perform within one year from agreement date
- Terms prevent full performance within a year
- Full performance within a year is impossible or highly unlikely (multi-year employment contracts, long-term leases)
- Contracts selling or transferring an interest in land
- Sale or transfer of real property (houses, land parcels)
- Lease of real property exceeding one year (commercial building leases)
- Contracts selling goods valued at $500 or more under the Uniform Commercial Code
- Applies to tangible, movable property sales (vehicles, machinery)
- Excludes specially manufactured goods for the buyer and accepted goods
- Contracts assuming responsibility for another's debt, default, or miscarriage
- Promises to pay or assume another person's debt or obligation (cosigning a loan, guaranteeing a lease)
- Contracts made in consideration of marriage
- Prenuptial agreements or promises to marry (property division, spousal support)
Contracts within vs outside Statute of Frauds
- Contracts within Statute of Frauds
- Require a signed writing by the party against whom enforcement is sought
- Unenforceable if Statute of Frauds not satisfied (oral agreement for a 5-year lease)
- Contracts outside Statute of Frauds
- Can be formed orally or through conduct
- Enforceable without a writing (service contracts, goods under $500)
Requirements for Statute of Frauds compliance
- Contract must be in writing
- Any form suffices: formal contract, memorandum, email
- Must contain essential agreement terms (parties, subject matter, price)
- Contract signed by the party against whom enforcement is sought
- Signature can be any mark, symbol, or electronic signature authenticating the writing
- Only the party against whom enforcement is sought must sign
- Writing must contain essential agreement terms
- Includes subject matter, parties, price, quantity if applicable (land description, lease duration)
- Need not contain every detail, but must provide a reasonable basis for determining
Application of Statute of Frauds
- Oral agreement to lease an apartment for two years
- Within Statute of Frauds: real property lease exceeding one year
- Must be in writing and signed by the landlord to enforce
- Written agreement to purchase a car for $10,000, signed by the buyer
- Outside Statute of Frauds: goods over $500
- Satisfies Statute of Frauds: in writing, signed by buyer against whom enforcement is sought
- Oral agreement between friends: one promises to pay the other's $200 credit card debt
- Within Statute of Frauds: promise to answer for another's debt
- Must be in writing and signed by the promising friend to enforce
Key Terms to Review (16)
Contracts for marriage: Contracts for marriage are legally binding agreements that establish the terms and conditions of a marriage, including any pre-nuptial or post-nuptial arrangements. These contracts often address issues such as property rights, financial responsibilities, and other obligations that may arise during the marriage or in the event of a divorce. Understanding these contracts is essential as they are one of the few types of agreements that must typically be in writing to be enforceable.
Contracts for the Sale of Goods Over $500: Contracts for the sale of goods over $500 refer to agreements involving the transfer of ownership of goods where the total purchase price exceeds $500. These contracts must be in writing to be enforceable, as mandated by the Statute of Frauds, ensuring that there is clear evidence of the terms agreed upon by both parties. This requirement helps prevent disputes and provides a formal record that can be referred to if issues arise.
Contracts Lasting Longer Than One Year: Contracts lasting longer than one year are agreements that cannot be performed within one year from the date they are made. These contracts are subject to specific legal requirements, including the necessity of being in writing to be enforceable. This requirement helps to prevent misunderstandings and provides clear evidence of the parties' intentions and obligations over an extended period.
Damages: Damages are a monetary compensation awarded to a party for loss or injury caused by the breach of a contract or wrongful act. The aim is to put the injured party in the position they would have been in had the breach not occurred, and this concept intersects with various legal principles such as misrepresentation, anticipatory repudiation, and breach of contract.
Essential Terms: Essential terms refer to the key components of a contract that outline the rights and obligations of the parties involved. These terms typically include elements such as the identity of the parties, subject matter, price, payment terms, and duration of the agreement. Understanding essential terms is crucial for determining whether a contract is enforceable and helps establish clarity and mutual understanding between the parties.
Lease agreements: A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms under which one party rents property owned by another party. This agreement specifies the duration of the lease, rental payments, responsibilities for maintenance, and other key conditions that govern the relationship between the landlord and tenant. Since lease agreements typically extend beyond one year, they must be in writing to be enforceable, adhering to legal requirements that aim to protect both parties involved.
Oral modification limitations: Oral modification limitations refer to the restrictions placed on the ability to change a written contract through verbal agreements. These limitations are rooted in the Statute of Frauds, which requires certain contracts to be in writing to be enforceable. Understanding these limitations helps parties navigate the complexities of contract law and the enforceability of agreements made outside of the written document.
Partial performance: Partial performance refers to the situation where one party fulfills part of their contractual obligations while not completing the entire contract. This concept is significant because it can affect the enforceability of contracts, particularly in relation to whether a contract needs to be in writing or can be enforced based on actions taken by the parties involved.
Promissory Estoppel: Promissory estoppel is a legal principle that prevents a party from withdrawing a promise made to another party when the latter has reasonably relied on that promise to their detriment. This doctrine is essential in contract law as it allows for enforceability of certain promises even when a formal contract does not exist, often bridging gaps where consideration or formalities may be lacking.
Purchase agreements: Purchase agreements are legally binding contracts between a buyer and a seller that outline the terms of a transaction for goods or services. They detail key components like price, quantity, delivery, and payment terms, ensuring both parties are clear on their obligations. These agreements play a critical role in establishing trust and accountability in transactions, which is especially important in both legal and business contexts.
Real estate contracts: Real estate contracts are legally binding agreements that outline the terms and conditions related to the buying, selling, or leasing of real property. These contracts must typically be in writing to be enforceable, serving as a clear record of the parties' intentions and obligations. Understanding how these contracts interact with legal requirements helps clarify the significance of statutory frameworks like the Statute of Frauds, which governs what types of agreements must be in writing to be valid.
Signature requirement: The signature requirement is a legal necessity that mandates certain contracts to be in writing and signed by the parties involved to ensure enforceability. This requirement is crucial for preventing fraud and misunderstandings by providing clear evidence of the parties' agreement and intentions. In the context of the law, the signature serves as an acknowledgment of consent and acceptance of the contract's terms.
Specific Performance: Specific performance is a legal remedy in contract law that compels a party to fulfill their obligations as agreed in the contract, rather than simply providing monetary damages. This remedy is typically applied when monetary compensation is inadequate to address the harm caused by a breach, especially in cases involving unique goods or properties. Its application intersects with various aspects of contract law, such as the conditions under which it can be sought, how breaches are classified, and the sources of law that govern contractual agreements.
Statute of Frauds: The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed to be enforceable. This principle aims to prevent fraud and misunderstandings in significant transactions, ensuring that there is clear evidence of the agreement between the parties involved.
Voidable Contracts: Voidable contracts are agreements that can be legally enforced but may be rejected by one party due to certain circumstances, such as misrepresentation, duress, undue influence, or a lack of capacity. They allow for the option to either affirm or void the contract, depending on the situation of the parties involved. This flexibility is crucial when interpreting contracts and understanding how they can be affected by external factors.
Written modification: A written modification refers to a formal alteration or change made to an existing contract, which is documented in writing and agreed upon by all parties involved. This ensures that the modification is legally binding and can be enforced in a court of law. Written modifications are often necessary when changes to the terms of a contract must be made to reflect new agreements or circumstances, providing clarity and protection for all parties.