Statute of Frauds
Lesson:
The statute of frauds is a legal doctrine that requires some contracts to be in writing and signed in order to be legally enforceable.
Any contract involving at least one of the following are required to be in writing:
- Contracts that entice a party to consider marriage
- Contacts that cannot be performed within one year
- Contracts involving land rights and ownership
- Contracts requiring an executor of a will to pay an estate's debt with his own funds
- Contracts requiring a third-party to guarantee a loan or debt
- Contracts involving the sale of goods with a total value of at least $500
The reason the statute of frauds exists is that the existence of oral agreements are often too difficult to prove.
It should be noted that even if the statute of frauds does not require an agreement to be in writing, other laws may cover the contract.
You're an accountant, trying to figure out if your client needs to consider the statute of frauds before proceeding further.
Here's what you know:
- During their engagement, the fiancée accepted the fiancé’s offer to transfer the deed of his primary residence into her name immediately following the exchange of vows.
Does the statute of frauds apply and require the agreement to be in writing?
Answer:
- Yes. The statute of frauds does apply and the agreement should be in writing.
Explanation:
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Contracts that involve bargaining for the consideration of marriage must always be in writing and signed. Contracts that simply involve married or engaged partners are not necessarily covered.