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Editing Contracts/Statute of frauds
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{{:Contracts/TOC | {{:Contracts/TOC}} | ||
The '''statute of frauds''' refers to the requirement that certain kinds of [[contract]]s be memorialized in writing, signed by the party to be charged, with sufficient content to evidence the contract.<ref>{{cite journal|last1=Drachsler|first1=Leo M.|title=The British Statute of Frauds - British Reform and American Experience|journal=Section of International and Comparative Law Bulletin|date=1958|volume=3|issue=24}}</ref><ref>The list of contracts that fall under a traditional statute of frauds can be remembered by using the [[mnemonic]] "MY LEGS": '''M'''arriage, contracts for more than one '''Y'''ear, '''L'''and, '''E'''xecutor (or '''E'''state), '''G'''oods ($500.00 or more), '''S'''urety.</ref> | The '''statute of frauds''' refers to the requirement that certain kinds of [[contract]]s be memorialized in writing, signed by the party to be charged, with sufficient content to evidence the contract.<ref>{{cite journal|last1=Drachsler|first1=Leo M.|title=The British Statute of Frauds - British Reform and American Experience|journal=Section of International and Comparative Law Bulletin|date=1958|volume=3|issue=24}}</ref><ref>The list of contracts that fall under a traditional statute of frauds can be remembered by using the [[mnemonic]] "MY LEGS": '''M'''arriage, contracts for more than one '''Y'''ear, '''L'''and, '''E'''xecutor (or '''E'''state), '''G'''oods ($500.00 or more), '''S'''urety.</ref> | ||
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==Application== | ==Application== | ||
Traditionally, the statute of frauds requires a signed writing in the following | Traditionally, the statute of frauds requires a signed writing in the following circumstances: | ||
:* Contracts in [[consideration]] of [[ | :* Contracts in [[consideration]] of [[marriage]]. This provision covers prenuptial agreements. | ||
:* Contracts that cannot be performed within | :* Contracts that cannot be performed within one year. However, contracts of indefinite duration do not fall under the statute of frauds regardless of how long the performance actually takes. | ||
:* Contracts for the transfer of an interest in land | :* Contracts for the transfer of an interest in land. This applies not only to a contract to sell land but also to any other contract in which land or an interest in it is disposed, such as the grant of a mortgage or an easement. | ||
:* Contracts by the [[executor]] | :* Contracts by the [[executor]] of a [[will (law)|will]] to pay a debt of the estate with his own money. | ||
:* Contracts for the sale of goods | :* Contracts for the sale of goods totaling $500.00 or more. | ||
:* Contracts in which one party becomes a [[surety]] | :* Contracts in which one party becomes a [[surety]] (acts as guarantor) for another party's debt or other obligation. | ||
In an action for [[specific performance]] of a contract to convey land, the agreement must be in writing to satisfy the statute of frauds. The statute is satisfied if the contract to convey is evidenced by a writing or writings containing the essential terms of a purchase and sale agreement and signed by the party against whom the contract is to be enforced. If there is no written agreement, a court of equity can specifically enforce an oral agreement to convey only if the part performance doctrine is satisfied. In most jurisdictions, part performance is proven when the purchaser pays the purchase price, has possession of the land and makes improvements on the land, all with the permission of the seller. No jurisdiction is satisfied by payment of the purchase price alone.<ref>[https://web.archive.org/web/20170511090326/http://www.cs.xu.edu/~osborn/main/lawSchool/contractsHtml/bottomScreens/Briefs/Restatement%20129.%20Action%20in%20Reliance;%20Specific%20Performance.htm Restatement (Second) of the Law of Contracts § 129]. American Law Institute.</ref> | In an action for [[specific performance]] of a contract to convey land, the agreement must be in writing to satisfy the statute of frauds. The statute is satisfied if the contract to convey is evidenced by a writing or writings containing the essential terms of a purchase and sale agreement and signed by the party against whom the contract is to be enforced. If there is no written agreement, a court of equity can specifically enforce an oral agreement to convey only if the part performance doctrine is satisfied. In most jurisdictions, part performance is proven when the purchaser pays the purchase price, has possession of the land and makes improvements on the land, all with the permission of the seller. No jurisdiction is satisfied by payment of the purchase price alone.<ref>[https://web.archive.org/web/20170511090326/http://www.cs.xu.edu/~osborn/main/lawSchool/contractsHtml/bottomScreens/Briefs/Restatement%20129.%20Action%20in%20Reliance;%20Specific%20Performance.htm Restatement (Second) of the Law of Contracts § 129]. American Law Institute.</ref> | ||
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With respect to [[security (finance)|securities]] transactions, the Uniform Commercial Code has abrogated the statute of frauds.<ref>{{UCC|8|319}}</ref> The drafters of the most recent revision commented that "with the increasing use of electronic means of communication, the statute of frauds is unsuited to the realities of the securities business." | With respect to [[security (finance)|securities]] transactions, the Uniform Commercial Code has abrogated the statute of frauds.<ref>{{UCC|8|319}}</ref> The drafters of the most recent revision commented that "with the increasing use of electronic means of communication, the statute of frauds is unsuited to the realities of the securities business." | ||
==See also== | ==See also== |