Related Articles: Business Law/Litigation
The Statute of Frauds: It's Not What it Sounds Like (What
you should put in writing)
Based on its name you might think that the Statute of Frauds
has something to do with criminal or civil fraud, but it doesn't.
The name "Statute of Frauds" actually refers to a law passed
by the British Parliament in 1677, and the name has been retained
through the centuries. It specifies which kinds of contracts
must be in writing in order to be enforceable. Its purpose
is to prevent the setting up of supposed agreements and then
supporting them by perjury.
The most common applications of the Statute of Frauds are
as follows:
- Holding a person responsible for the promise to pay the debt
of another
Contracts for the sale of real estate
Leases for real estate over 1 year
Agreements which cannot be performed within 1 year
Sale of personal property over $5,000
Sale of goods over $500, unless the buyer accepts the goods
- Agency agreements
While the Statute requires a written agreement, almost any
writing sufficient to indicate some kind of agreement between
the parties will suffice. However, the "writing" must be signed
by the party who is being charged. Thus, the venerable Statute
of Frauds is still an important and influential part of modern
law.
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