Statute of Frauds


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Statute of Frauds

A statute setting out certain contracts that are not enforceable within the state. The most significant provisions for real estate purposes are those that require almost all contracts and transfers related to real estate to be in writing and all guarantee agreements to be in writing.This does not mean there must be a formal “contract”or “agreement”signed by all parties.The Statute is usually satisfied if there is some writing signed by the party sought to be held liable.

Example: A letter from Sam Seller to Betty Buyer says, “Dear Betty, I'm glad you like the home so much. Your offer of $150,000 was more than I was expecting, so I'll be out shopping for a new home while you get ready for closing. I'm looking forward to seeing you again at the end of the month; do you mind terribly if I don't move out until a day or two afterward? Warmest regards, Sam.” This might be sufficient to allow Betty to enforce a sale contract. Even a combination of e-mails, read together, could suffice for Statute of Frauds purposes in some states. See also Uniform Electronic Transactions Act.

References in periodicals archive ?
As Traynor notes, California's statute of frauds would undoubtedly apply to a purely local dispute, and it would undoubtedly not apply to a purely Nevadan dispute.
The director did not return it, paid nothing, and argued in an action to enforce the alleged guarantee that it did not comply with the Statute of Frauds.
Based on these facts we hold the contract between Adams and H&H is an exception to the statute of frauds [and thus a written agreement between the parties is not required].
The Statute of Frauds formulation implies that a "writing" is itself a basic and understood concept.
The language of the FAR is clear with respect to the writing requirement and is in accordance with past statutes interpreted by the courts to be a virtual statute of frauds.
Farzin, a Pennsylvania case, the court held a mailgram to be a signed writing as required by the statute of frauds and recognized similarities among communication methods:
I then coded these remaining opinions as to the following variables: (1) evidence of a history of prior dealings and a prior business and/or social relationship between the parties; (2) the complexity of the agreement disputed in the case; (3) the existence and level of detail of the writings memorializing the alleged agreement; (4) the type and importance of the Statute of Frauds issue that was discussed in the opinion; and (5) evidence that the dispute reported was part of an "endgame" situation involving the termination of the parties' relationship (if one existed).
In the period when the statute of frauds first came into effect, and continuing until the second half of the nineteenth century, rules of evidence barred interested parties from testifying in open court.
not violative of the Statute of Frauds requiring a writing as the Listing broker is licensed in New York).
If answered in the affirmative, the plaintiffs would effectively avoid the statute of frauds requiring that credit agreements be in writing.
AFFI supported restoration of the Statute of Frauds for contracts for the sale of goods of $5,000 or more, but criticized a provision which would 'open the door to oral contracts in contravention of the purpose of the Statute of Frauds' and create other 'loopholes' which 'undermine the Statute of Frauds as it has traditionally been applied.