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Tuesday, June 21, 2011

Statute Of Frauds

Based on its name you might think that the Statute of Frauds has something to do with criminal or civil fraud, but it doesn't. The name "Statute of Frauds" actually refers to a law passed by the British Parliament in 1677, and the name has been retained through the centuries. It specifies which kinds of contracts must be in writing in order to be enforceable. Its purpose is to prevent the setting up of supposed agreements and then supporting them by perjury.

The most common applications of the Statute of Frauds are as follows:

Holding a person responsible for the promise to pay the debt of another
Contracts for the sale of real estate
Leases for real estate over 1 year
Agreements which cannot be performed within 1 year
Sale of personal property over $5,000
Sale of goods over $500, unless the buyer accepts the goods
Agency agreements

While the Statute requires a written agreement, almost any writing sufficient to indicate some kind of agreement between the parties will suffice. However, the "writing" must be signed by the party who is being charged. Thus, the venerable Statute of Frauds is still an important and influential part of modern law.

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