Answered Essay: When is writing required under the statute of frauds?

When is writing required under the statute of frauds?

What type of writing is required under the statute of frauds?

What is the parole evidence rule, and what are the exceptions to that rule?

Expert Answer

When is writing required under the statute of frauds?

The following types of contract under or within the statute of frauds and requires to be in writing:

  • Contracts involving interests in land.
  • Contracts that cannot by their terms be performed within one year from the date of formation.
  • Collateral, or secondary, contracts, such as promises to answer for the debt or duty of another and promises by the administrator or executor of an estate to pay a debt of the estate personally—that is, out of his or her own pocket.
  • Promises made in consideration of marriage.
  • Under the UCC, contracts for the sale of goods priced at $500 or more.

What type of writing is required under the statute of frauds?

Contracts under the statute of fraud are enforced against signing parties only. A signature is defined as a name, initials, or even a company name or logo, and can be handwritten, typed, or printed. Additionally, it can include the signatures of authorized agents as well. An electronic memorandum can hold good in place of writing where electronic signatures would be accepted. Unless otherwise specified, these are the requirement of the writing.

What is the parole evidence rule, and what are the exceptions to that rule?

Under the parol evidence rule, if the court finds that a written contract exists and it represents the complete and final statement of the parties’ agreement, then it will not allow either party to present parol evidence i.e testimony or other evidence of communications between the parties that are not a part of the written contract itself. In other words, the prior negotiations, agreements, or oral agreements if that evidence which contradicts or varies the terms of the parties’ written contract will not be considered as evidence.

The exceptions to parol evidence rule are:

1. Not prior, but subsequent oral modification of the written contract, excluding the cases of the statute of frauds, will not come under the parol evidence.

2. Oral evidence can be introduced to affirm that the contract was void or voidable including the causes such as mistakes, frauds, or misinterpretation.

3. When the terms of the written contract themselves are ambiguous, incomplete, or lack essential components.

4. Under UCC, evidence can be introduced to explain or supplement a written contract by showing a prior dealing, the course of performance, or usage of trade.

5. When the written contract itself depend on an orally agreed-upon condition.

6. Clerical mistakes, gross mistakes in the written contract may lead to the reference of prior oral agreements.

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