Statute of Frauds

Lesson Exercise Solution

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 are the relevant facts:

The landscaping firm contracted to provide monthly maintenance services for a client’s large estate through the next 13 full calendar months.

Does the statute of frauds apply and require the agreement to be in writing?

Contracts that cannot be completed within one year must always be in writing and signed.