Statute of Frauds

The Statute of Frauds is a statute under the contract law of the United States Code. Each particular State, including the State of Florida, have their own adaptations to the Statute of Frauds which is applicable whenever a contract or an alleged contract is done within that State’s jurisdiction. Whenever a protected transaction falls under the Statute of Frauds, it is necessary for there to be a written existence where an acknowledgement of the contract by the parties involved can be discerned from the content of the written instrument.

In order to fulfill the statute requirements, it is necessary for the writing to clearly identify the parties bound by contract, state the subject matter of the contractual agreement so that it can be understood, as well as state the terms and conditions.

Purpose

The main aim of this statute is to prevent harm due to fraudulent behavior. Even though the statute has faced some criticism because of its misuse by some parties, it continues to be an effective tool against fraud. The fact that it requires important transactions such as the ones involving real estate or those with longer time periods to have their agreements made in writing makes for a strong argument in its favor.

The reason behind this is to reduce frauds and prevent litigation. Furthermore, parties can review the agreement terms and conditions before its finalization. This gives them an opportunity to scrutinize the agreement for a second time.

Requirements

The statute requires the agreement to be in writing in the following circumstances:

• Contracts pertaining to the sale of those goods that have a purchase price higher than $1000 (this may vary, depending upon the state)

Defense to an Oral Contract

In situations where there is an oral agreement instead of a written one, the equity court is entitled to enforce the verbal agreement, in case of fulfillment of the part performance doctrine. Part performance can be proven by actions such as payment of purchase price, improvements made on the property and possessing the property. Merely payment of purchase price is not enough.

Statute of Frauds in Florida

The state of Florida has variations of the statute of frauds – a different one for varying transaction types. There are 3 statutes meant for goods exceeding $500, $1000 and $5000. The state law requires a written agreement regardless of the time when the contract will be performed. The actions that are restricted by the statute are not allowed to be litigated. Litigation is prevented by a concept known as an Affirmative Defense. A successful affirmative defense will cause a Plaintiff’s claim or cause of action to be dismissed by the Court with prejudice.

What Is The Statute Of Frauds?

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing in order to be enforceable. This rule applies to agreements like those involving the sale of real estate, contracts that cannot be completed within one year, and promises to pay another person’s debt. By requiring written agreements, this statute aims to reduce misunderstandings and disputes over what was agreed upon. While many contracts can be made verbally, it’s important to recognize when the law demands a written document.

Why Does The Statute Of Frauds Exist?

The Statute of Frauds exists to help protect individuals and businesses from fraudulent claims or disputes. When certain contracts are required to be in writing, it reduces the chance of disagreements about the terms of the deal. Written contracts provide a clear record of what both parties agreed to, making it easier to settle disputes if they arise. This law plays a crucial role in maintaining fairness and clarity in more significant or long-term agreements.

What Types Of Contracts Fall Under The Statute Of Frauds?

Several types of contracts fall under the Statute of Frauds. These generally include contracts for the sale of land, leases longer than one year, agreements that cannot be performed within a year, promises to answer for another’s debt, and contracts for the sale of goods over a certain amount (which may vary by jurisdiction). These categories highlight the importance of having written agreements for more substantial or complex transactions, as they often involve higher stakes.

What Happens If A Contract Is Not In Writing?

If a contract that falls under the Statute of Frauds is not in writing, it may not be enforceable in court. This means that if one party fails to fulfill their part of the agreement, the other party may have difficulty seeking legal remedies. There are, however, some exceptions to this rule. For example, if one party has partially performed their obligations or if both parties admit that a contract existed, the court might still enforce the agreement.

Are There Any Exceptions To The Statute Of Frauds?

Yes, there are exceptions to the Statute of Frauds. In some cases, if one party has already taken significant steps to perform the contract, such as making payments or delivering goods, the court may enforce the agreement, even if it wasn’t in writing. Additionally, if both parties admit to the existence of a contract during legal proceedings, a court might still uphold the agreement. These exceptions ensure that fairness is maintained when there’s clear evidence of a deal, despite the lack of a written contract.

If you’re dealing with contracts that may fall under the Statute of Frauds, it’s essential to have the right legal support. At Law Offices of Arcadier, Biggie & Wood, we have seventy-five years of successful legal experience. Our award-winning team is here to help you understand your rights and guide you through any questions you may have about contract law. Reach out to us today, and let’s make sure your agreements are solid and enforceable.