Statute of Frauds


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

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 ?
Electronic contracts provide an opportunity to revisit the Statute of Frauds to determine its modern vitality.
For the purposes of this Note, the term "virtual statute of frauds" is used as a shorthand to refer to strict enforcement of the FAR's writing requirement, as opposed to viewing the writing requirement as a mere formality that may be overcome by theories of implied contracts.
Some argue that this position emasculates the statute of frauds, because it does away with the "present intent to authenticate" requirement, which is essential to prevent deceit.
The sample data also suggest that judges are applying the Statute of Frauds in a predictable fashion that closely mirrors business practice.
Although Fuller's justifications may explain why parties would often want to use a writing or other precautions, they do not explain why the Statute of Frauds and other formalities should have the immutable aspect mentioned earlier.(15)
(269) But that space of time proved sufficient for the doctrine to take hold in America, still a mosaic of colonies in 1677, when the English statute of frauds was adopted.
Under the circumstances, California could achieve its subsidiary policy of enforcing contracts while recognizing that, in light of Nevada's strong interest in the case, it need not apply its statute of frauds in this specific case.
In England, the Statute of Frauds has been subject to further additions, deletions and statutory reform over the centuries.
On appeal the Second Circuit vacated the finding that New York law and the statute of frauds applied to the oral modification.
Formality requirements consisting of the writing, signatures etc were first introduced in the Statute of Frauds 1677.
Alternatively, was the settlement agreement unenforceable under the Mississippi Statute of Frauds. (11)
This type of agreement, like the finder's fee agreement, is required to be in writing or it will be rendered unenforceable by the Statute of Frauds of the applicable State.