Contract Glossary
Statute of Frauds
Definition
A legal doctrine requiring certain types of contracts to be in writing and signed by the party to be bound in order to be enforceable. Oral agreements for these categories are generally unenforceable, even if both parties agree the deal was made. The statute doesn't require a formal contract — a signed letter, email, or even a napkin can satisfy the writing requirement — but something must be in writing.
In Practice
You verbally agree to lease office space for 18 months at $3,000/month. Six months in, the landlord tries to raise the rent to $4,000. You protest that you had a deal. Under the statute of frauds, your verbal agreement for an 18-month lease is unenforceable because leases longer than one year must be in writing. The landlord can raise the rent, and you have no legal recourse because the agreement wasn't documented. A simple signed email confirming the terms would have been enough to make the deal enforceable.
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Frequently asked questions about statute of frauds
The classic categories (remembered by the mnemonic 'MY LEGS'): (M) Marriage — contracts made in consideration of marriage (prenups). (Y) Year — contracts that can't be performed within one year. (L) Land — contracts involving real property interests. (E) Executor — promises by an executor to pay estate debts from personal funds. (G) Goods — sale of goods over $500 (UCC § 2-201). (S) Surety — promises to pay another's debt. Specific categories vary by state.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.