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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The above is not meant to replace legal counsel. If you'd like to speak to an attorney, please contact us at 703-273-1400 or by filling out our online information request form.

What Should You Put In Writing: Understanding Statue 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.

For more information or to have Gross & Romanick aid you in written contracts and agreements, please contact the firm directly by calling (703) 273-1400.

The Importance of Having a Written Contract

A common problem that we encounter at Gross & Romanick is the client who wishes to enforce an agreement that was not put into a writing signed by all parties. Even an exchange of e-mails or written proposals without a signature does not necessarily create a binding contract. While some oral agreements are enforceable, it can be extremely difficult to prove the existence of an oral contract and its terms. To be enforceable, an oral contract requires: (a) a meeting of the minds, (b) definite terms, and (c) a pattern of adherence to those terms. More often than not, the existence of an oral contract boils down to a “he said-she said” debate, which can make enforceability very uncertain.

In addition, under the Statute of Frauds in Virginia, some oral contracts are never enforceable. These include, but are not limited to:

Agreements to pay the debts of others;
Agreements for the sale of real estate;
Agreements to lease real estate for more than 1 year;
Agreements that cannot be performed within 1 year; and
Agreements to lend or extend money in an aggregate amount above $25,000.

It is always better to put an agreement into writing, signed by the parties. Doing so eliminates the “existence of a contract” issue, the Statute of Frauds issue, and the argument over what the terms of the agreement were. Also, having a written agreement increases the likelihood that the parties to the agreement will actually acknowledge and abide by the deal. In Virginia, you also have a longer time period to enforce a written contract following a breach (5 years for written contract versus 3 years for oral contracts).

Too many people fail to create a written agreement. This is especially true when the agreement involves friends and family, because it seems to imply lack of trust. In fact, a written agreement is good for all parties because it explains the actual terms of the contract, which understanding may differ among the parties if there is no writing. The only party that benefits from an oral agreement is the party breaching the contract. In our legal experience, it is alarming how often a party to an oral agreement will simply lie about the agreement when the other party seeks to enforce it. Do not take this risk!

The Statute of Frauds: It's Not What it Sounds Like (What you should put in writing)

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.

***

The above article is not meant to replace legal counsel. To speak to one of Gross & Romanick's attorneys please contact them directly by filling out their online form, email them at law@gross.com, or call (703) 273-1400.

The Statute of Frauds: It's Not What it Sounds Like (What you should put in writing)

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.

***

The above article is not meant to replace legal counsel. For legal representation or for questions regarding a specific case, please contact Gross & Romanick directly by filling out their online form, e-mailing law@gross.com or calling 703-273-1400.