Also known as: one year provision · one-year rule · Statute of Frauds one-year provision
Written by attorneys · grounded in primary & secondary sources — see below
A statutory rule within the Statute of Frauds that renders unenforceable any contract whose terms make full performance impossible within one year from formation unless evidenced by a signed writing. The rule looks solely to the terms at formation and treats impossibility of completion within the year as decisive regardless of actual duration or later events.
MetroCell Corp orally promised Apex Maintenance LLC the exclusive right to service its cell towers for seven years. Apex purchased specialized equipment in reliance and began work. When MetroCell hired another firm, Apex sued for breach. The oral promise falls within the one-year provision because the fixed seven-year term made full performance impossible within one year from formation.
Overland Transport orally agreed to haul freight for Omega Energy for eighteen months at a fixed rate. After Overland completed all scheduled hauls, Omega refused the final payment. Overland sued. Because one party finished performance, the one-year provision no longer bars enforcement of Omega's remaining promise.
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Osprey Aviation orally promised Orion Orlov continued employment so long as his performance remained satisfactory. After two years the company terminated him without cause. Orion sued for breach. The agreement lies outside the one-year provision because nothing in its terms precluded full performance within one year.
No. The statute looks to the terms at formation. A contract that cannot be fully performed within one year remains subject to the writing requirement even if one party has already worked for a year.
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Once one party completes performance, the one-year provision no longer prevents enforcement of the other party's promises.
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Because death could occur within one year and thereby end the obligation, the contract remains capable of full performance inside the statutory period.
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Yes, if the terms permit either party to end the relationship within one year, the contract can be fully performed inside that period and therefore falls outside the statute.
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