Statute of frauds,
Definition of Statute of frauds:
Requirement that certain contracts (such as for sale of land, sale of goods exceeding a certain value, a debt guaranty) must be in writing and properly executed to prevent fraud and perjury. Otherwise such contracts cannot be enforced in the courts although they remain legal (are not rendered void).
The statute of frauds (SOF) is a legal concept that requires certain types of contracts to be executed in writing. Among others, these typically include those for the sale of land, of any goods over $500 in value, and contracts of a year or more in length.
The statute of frauds was adopted in the U.S. primarily as a common law concept—that is, as unwritten law—although it has since been formalized by statutes in certain jurisdictions, such as in most states. In a breach of contract case in which the statute of frauds applies, the defendant may raise it as a defense—indeed, they often must do affirmatively for the defense to be valid. In such a case, the burden of proof is on the plaintiff to establish that a valid contract was indeed in existence.
How to use Statute of frauds in a sentence?
- I read about the statute of frauds and agreed with it because I preferred honesty in the business world and not fraud.
- It applies to land sales and most purchases of goods over $500, among other transactions.
- The statute of frauds is a common law concept that requires written contracts for certain agreements to be binding.
- You should always make sure that any important deal you make lives up to all of the statute of frauds and is legit.
- The statute of frauds was mentioned and fortunately we had everything in writing so we felt secure in our business dealings.
- Exceptions do apply, as do some variations by state.
Meaning of Statute of frauds & Statute of frauds Definition