Contracts/Statute of frauds

The Statute of Frauds refers to a requirement in many common law jurisdictions that certain kinds of transactions, typically contractual obligations, be evidenced by a writing signed by the party against whom enforcement is sought, or by their authorized agent. The term comes from English statutory law (29 Car. II c. 3) passed in 1677. It is more properly called the Statute of Frauds and Perjuries.

The writing that the Statute requires is a precondition to maintaining a suit for breach of contract (or other obligation). However, the Statute is used as a defense, which defense is waived if the person against whom enforcement is sought fails to raise it at trial. (The burden of showing evidence that such a writing exists only comes into play when a Statute of Frauds defense is raised by the defendant.)

Traditionally, the statute of frauds requires a writing signed by the party against whom enforcement is sought in the following circumstances:

• Contracts in consideration of marriage
• Contracts which cannot be performed within one year
• Contracts for the sale of land
• Contracts by the executor of a will to pay a debt of the estate with his own money
• Under the Uniform Commercial Code, contracts for the sale of goods where the price exceeds $500.00
  • The most recent revision of the UCC increases the threshold to $5,000, but most states have yet to adopt it.
• Contracts in which one party becomes a surety (acts as guarantor) for another party's debt or other obligation.

Law students often remember these circumstances by the mnemonic "MYLEGS" (marriage, year, land, executor, goods, surety).