Statute of Frauds is a common law doctrine that requires certain types of contracts to be in writing to be enforceable. The Statute of Frauds is satisfied if the contract is evidenced by a writing or writings, contains the essential terms of a contract, is signed by the relevant parties against whom the contract is to be enforced, and has enough information to evidence the parties' intent to enter into a contract. As applied in California, the statute generally requires the following types of contracts to be in writing to be legally binding:
- Contracts that cannot be completed in less than one year.
- Contracts for the sale of land.
- Contracts for the sale of goods above a specific dollar amount, typically $500.
- A contract in which one person promises to pay another person’s debt.
To satisfy the requirement of the Statute it is not necessary that the writing be in the form of a formal contract, as long as it contains the material terms. The Statute of Frauds applies only to breach of a contract claims when assessing the validity and enforceability of the contract. It does not apply to any other causes of action.
However, in some situations, unwritten agreements that would ordinarily require a written contract under the Statute of Frauds may still be enforceable. One exception to the Statute of Frauds is partial performance. For example, if there is no written contract but the buyer in the alleged contract has paid any portion of the sale price, has begun to permanently improve the land, or has taken possession of the land, the courts will consider the contract partially performed, and this partial performance will amount to proof of the contract.
JAHANGIRI LAW GROUP specializes in business, corporate, commercial, and real estate litigation, and transactional law. We offer services in Urdu, Hindi, Punjabi and Spanish. We are located in San Ramon. We are open from 9:00 a.m. to 5:00 p.m., Monday to Friday. To make an appointment please call 925-574-0100.
