Statute of Frauds Requirements

The Statute of Frauds outlines specific contracts that must be in writing to be enforceable. Understanding these requirements helps prevent disputes and ensures clarity in agreements related to goods, land, debts, marriage, and more.

1. Contracts for the sale of goods over $500

   • Must be in writing to be enforceable.
   • Applies to the sale of goods as defined by the Uniform Commercial Code (UCC).
   • Oral contracts exceeding this amount are generally unenforceable.

2. Contracts that cannot be performed within one year

   • Must be in writing if the terms cannot be completed within one year from the date of the agreement.
   • The one-year period is measured from the time the contract is made, not when performance begins.
   • If there is any possibility of performance within one year, the contract may not need to be in writing.

3. Contracts for the sale or transfer of land

   • Must be in writing to be enforceable.
   • Includes leases, mortgages, and any interest in real property.
   • Oral agreements regarding land transactions are typically unenforceable.

4. Promises to pay the debt of another (suretyship)

   • Must be in writing to be enforceable.
   • Applies when one party agrees to pay the debt or obligation of another party.
   • This requirement protects against fraudulent claims and misunderstandings.

5. Contracts in consideration of marriage

   • Must be in writing to be enforceable.
   • Includes agreements made in connection with marriage, such as prenuptial agreements.
   • Protects the interests of both parties in marital arrangements.

6. Contracts by an executor to pay estate debts from personal funds

   • Must be in writing to be enforceable.
   • Applies when an executor promises to use personal funds to pay debts of the estate.
   • Ensures clarity and accountability in estate management.

7. The requirement for a written memorandum signed by the party to be charged

   • A written document must exist to enforce contracts covered by the Statute of Frauds.
   • The memorandum must be signed by the party against whom enforcement is sought.
   • Can be a formal contract or a simple note indicating the essential terms.

8. Exceptions to the Statute of Frauds (e.g., part performance, promissory estoppel)

   • Part performance can validate an otherwise unenforceable contract if significant actions have been taken.
   • Promissory estoppel may apply when one party relies on a promise to their detriment.
   • Courts may enforce certain oral contracts under these exceptions to prevent injustice.

9. The content requirements for a sufficient writing

   • Must include the essential terms of the agreement, such as parties, subject matter, and consideration.
   • Should be clear enough to indicate the intent of the parties.
   • Does not need to be a formal contract; any written evidence may suffice.

10. The effect of non-compliance with the Statute of Frauds

    • Contracts that fail to meet the Statute of Frauds requirements are generally unenforceable.
    • Parties cannot seek legal remedies for breach of an unenforceable contract.
    • Non-compliance can lead to disputes and potential losses for the parties involved.