Practical Law Glossary Item 2-553-0606 (Approx. 4 pages)
Glossary
Statute of Frauds
A common law doctrine requiring certain kinds of contracts to be in writing to be enforceable. The statute of frauds is satisfied if the contract:
Is evidenced by a writing or writings.
Contains the essential terms of a contract.
Is signed by the party against whom the contract is to be enforced.
Has enough information to evidence the parties' intent to enter into a contract.
The statute of frauds has been adopted by statute in most states. In addition to a state's general statute of frauds provisions, statute of frauds provisions typically can also be found in a state's adopted version of the Uniform Commercial Code (UCC). Although each jurisdiction's requirements may vary, the statute of frauds generally covers these types of contracts:
Contracts for the sale of goods priced $500 or more (UCC § 2-201).
Contracts made by executors and administrators.
Suretyship agreements.
Agreements in contemplation of marriage.
Contracts transferring an interest in real property, including:
Contracts that are not to be performed within one year.
Many states cover other classes of contracts, such as contracts that provide:
A special promise to answer for the debt, default, or miscarriage of another.
A subsequent or new promise to pay a debt discharged in bankruptcy.
Compensation for services rendered in connection with negotiating a loan.
Agreements that create a security interest in personal property if the property is not:
in the secured party's possession;
a certificated security; or
collateral that consists of deposit accounts, investment property, letter-of-credit rights, or electronic chattel paper if the secured party has control over such collateral.