Statute of Frauds

Definition

The Statute of Frauds is a legal doctrine that requires certain types of contracts to be evidenced by a written document, rather than relying solely on oral agreements. It serves to prevent fraud and perjury by ensuring that important contracts are memorialized in writing.

5 Must Know Facts For Your Next Test

1. The Statute of Frauds typically requires certain contracts, such as those for the sale of land, promises to pay the debts of another, or agreements that cannot be performed within one year, to be evidenced by a written document signed by the party to be charged.
2. The purpose of the Statute of Frauds is to prevent fraud and perjury by ensuring that important contracts are not based solely on unreliable oral testimony.
3. Even if a contract falls within the Statute of Frauds, it may still be enforceable if the parties have partially performed the agreement or if the doctrine of promissory estoppel applies.
4. The Statute of Frauds is a common law doctrine that has been adopted by most states, although the specific requirements may vary between jurisdictions.
5. The Uniform Commercial Code (UCC) also includes a Statute of Frauds provision for certain types of sales contracts, which requires a written memorandum for contracts involving the sale of goods over a certain monetary value.

Review Questions

• Explain how the Statute of Frauds relates to the concept of agreement in contract law.
  • The Statute of Frauds requires certain types of agreements, such as contracts for the sale of land or promises to pay the debts of another, to be evidenced by a written document signed by the party to be charged. This ensures that these important contracts are not based solely on unreliable oral testimony, which helps to prevent fraud and perjury. The Statute of Frauds, therefore, impacts the formation and enforceability of agreements by imposing a writing requirement for specific types of contracts.
• Describe the relationship between the Statute of Frauds and the doctrine of promissory estoppel.
  • The Statute of Frauds and the doctrine of promissory estoppel can intersect in certain situations. Even if a contract falls within the Statute of Frauds and is not evidenced by a written document, the contract may still be enforceable if the elements of promissory estoppel are met. Promissory estoppel allows a party to enforce a promise, even in the absence of consideration, if the party reasonably relied on the promise to their detriment. This doctrine can, in some cases, override the writing requirement of the Statute of Frauds, allowing an otherwise unenforceable oral agreement to be enforced based on the principles of equity and fairness.
• Analyze the role of the Statute of Frauds in the context of sales contracts governed by the Uniform Commercial Code (UCC).
  • The Uniform Commercial Code (UCC) includes a Statute of Frauds provision for certain types of sales contracts, which requires a written memorandum for contracts involving the sale of goods over a certain monetary value. This requirement serves a similar purpose to the common law Statute of Frauds, as it helps to prevent fraud and perjury by ensuring that significant sales contracts are evidenced in writing. The UCC's Statute of Frauds provision, however, may have different specific requirements than the common law doctrine, and it applies specifically to the sale of goods rather than the broader range of contracts covered by the common law Statute of Frauds. Understanding the interplay between the UCC's Statute of Frauds and the common law doctrine is crucial for properly analyzing the enforceability of sales contracts.

Related terms

Consideration: The bargained-for exchange of value between parties to a contract, which is required for a contract to be legally enforceable.

Promissory Estoppel: A legal principle that allows a party to enforce a promise even in the absence of consideration, if the party reasonably relied on the promise to their detriment.

Sales Contracts: Agreements for the sale of goods, which are governed by the Uniform Commercial Code (UCC) and subject to the Statute of Frauds.