Part III in a Series about the Statute of Frauds

We previously have discussed which contracts require a writing to satisfy the Statute of Frauds.  Here, in part three of this series, we examine some exceptions to those rules.

There Is A Contract For The Sale Of Goods

Where there is a contract for the sale of goods, a party cannot make the argument that there is no writing when the goods already have been delivered.  If the goods have not been delivered, there is a valid Statute of Frauds defense.  One nuance to these scenarios — if the goods are custom made goods, and they have not yet been delivered, and the seller has made a substantial beginning on manufacturing the goods — there is no Statute of Frauds defense and thus, legally, no writing is required.

There Is A Contract For The Sale Of Real Estate

If the contract is one for the sale of real estate, the Statute of Frauds is satisfied without a writing if the buyer has met two of the following: payment of the purchase, improvements to the real estate or possession of the real estate.  Even if payment has been made in full, without improvements or possession, the lack of a writing can be used for a Statute of Frauds defense.

There Is A Judicial Admission

Lastly, the Statute of Frauds will be satisfied if there is a judicial admission.  Such an admission must be made under oath and the admission must be that there was a contract but that it was never put in writing.

Again, even if your agreement is not legally required to be in writing to be enforceable under the Statute of Frauds, there are many other reasons why it ALWAYS is a good idea to put your agreements and contracts in writing.  An attorney can help you determine exactly what terms need to be included in your writing in order for it to be enforceable and meet the Statute of Frauds requirement or to be enforceable regardless of whether there is a Statute of Frauds requirement.

Previous Articles in this Series:

• Does My Contract Need To Be In Writing?
• How Do I Know if My Agreement Can be Performed Within One Year?

Upcoming Articles:

• We Have Evidence of Our Contract – Is it Enough to Qualify as a Writing?
• What if we Modify our Written Contract that Was Originally Governed by the Statute of Frauds?