Legal Definitions - frauds, statute of

Definition: The Statute of Frauds is a law that requires certain contracts to be in writing and signed by the party to be charged. The purpose of this law is to prevent fraud and perjury in court cases. The law originated in England in 1677 and was titled "An Act for the Prevention of Frauds and Perjuries." The statute declared certain contracts unenforceable if they were not in writing and signed by the party to be charged.

Examples: The Statute of Frauds applies to several types of contracts, including:

• A contract for the sale or transfer of an interest in land
• A contract that cannot be performed within one year of its making
• A contract for the sale of goods valued at $500 or more
• A contract of an executor or administrator to answer for a decedent's debt
• A contract to guarantee the debt or duty of another
• A contract made in consideration of marriage

For example, if John promises to sell his house to Jane but they do not put the agreement in writing and sign it, the contract may not be enforceable in court under the Statute of Frauds. This law helps ensure that contracts are clear and agreed upon by all parties involved.