A void contract is meaningless to begin with while a voidable contract is a valid contract except that it can be affirmed or rejected at the option of one of the parties. Remember the difference between a contract that is void and a contract that is merely voidable. In the event that an oral contract violates the Statute of Frauds, the contract will be voidable. In this case, although Kevin’s promise satisfies the writing requirement of the Statute of Frauds and is enforceable, the contract will not be enforceable against Kevin because he did not sign it. Larry defaults on his loan but Kevin refuses to pay the bank. However, Kevin does not sign the contract. Kevin, Larry’s friend from Minnesota who also lives in Boston, makes a written contract with the bank that he will be responsible for paying back the loan if Larry does not. Larry goes to Fleet Bank and applies for a $1 million loan. Larry has just moved from Indiana to Boston and would like to buy a house in the area. If any party to the contract does not sign it, that party cannot be held liable under the contract. Also, the writing must be signed by the party to be charged (i.e., the contract must be signed in order to hold a party liable to it). However, the writing must contain the essential terms of the contract, including who the contracting parties are, the subject matter of the contract and the terms and conditions of the agreement. contracts where an estate executor agrees to pay estate debts from his personal funds.Īny kind of writing will be adequate to satisfy the Statute of Frauds.contracts that cannot be performed within one year of the contract being made,.contracts in consideration of marriage,.contracts for the sale of goods for $500 or more (under the U.C.C.),.contracts for the sale of an interest in land,.
The six categories of contracts that must be written down in order to satisfy the Statute of Frauds are: If the contract does not fall into one of these six categories, the contract is “outside the statute” and does not need to be in writing. If a contract falls into one of these categories, the contract is “within the statute” and must be in writing. However, the Statute of Frauds requires that six kinds of contracts be put in writing in order to be enforceable. The rule stating that where a person guarantees the debt of another person in order to satisfy his own personal interests, that guarantee is enforceable even if it is not in writing. In the United States, although state laws vary, most require written agreements in fix types of contracts which are covered in this lesson.Ĭontracts to assume the obligation of another person.Ī contract under which one party promises something of value to the other party on the condition that they become married.
Basis of most modern laws requiring that certain promises must be in writing in order to be enforceable it was passed by the English Parliament in 1677.
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