Also known as: Statute of Frauds · statute of frauds
Written by attorneys · grounded in primary & secondary sources — see below
A statutory requirement that designated classes of contracts be memorialized in a signed writing to be judicially enforceable.
Seth Shapiro, as executor of his uncle's estate, orally promised a creditor that he would personally pay the decedent's outstanding medical bills if the estate funds proved insufficient. When the creditor later sued Shapiro individually after the estate was exhausted, the court dismissed the claim because no signed writing evidenced the promise. The absence of a memorandum left the suretyship undertaking unenforceable under the statute.
Sabrina Shah orally agreed to rent a storage unit from Sterling Dynamics for nine months at a fixed monthly rent. After Shah took possession and paid the first two months, the landlord attempted to terminate the arrangement early. The court enforced the lease because its duration did not exceed the one-year period specified in the controlling statute of frauds.
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Samuel Soto conveyed several lots in a new subdivision subject to a recorded declaration imposing architectural restrictions. When a buyer later erected a structure violating those restrictions, neighboring owners sought to enforce the servitude. The court upheld the restrictions because the declaration satisfied the statute of frauds for creation of servitudes.
Samantha Stone signed a document purporting to lease warehouse space from Skyline Construction for three years at $4,000 per month. The writing named the parties and premises but omitted the duration. When Stone later refused to pay rent, the landlord's enforcement action failed because the document did not satisfy all statutory requirements for a lease within the statute of frauds.
Scott Summers entered an oral five-year lease of farmland from Synergy Systems and immediately took possession while paying the stated annual rent. After two years the owner sought to evict Summers. The court recognized a year-to-year periodic tenancy because Summers had taken possession and the parties had performed in a manner referable to the lease terms, even though the original writing requirement was unmet.
Solomon Silver held a valid three-year written lease from Silverline Industries. Near the end of the term the parties orally agreed to extend the lease for another three years. When Silverline later refused to honor the extension, the court held the modification unenforceable because both the original term and the remaining period exceeded the statute of frauds threshold.
The statute covers contracts of executors to answer for a decedent's duty, suretyship promises, and certain leases whose duration exceeds the period specified in the controlling statute. A writing signed by the party to be charged is required unless an exception applies.
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The writing must identify the parties and premises, specify the lease duration, state the rent, and be signed by the party to be charged. Additional requirements may be imposed by the controlling statute of frauds.
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Possession alone creates a tenancy at will. If rent is also paid and accepted, a periodic tenancy arises with all lease terms except duration. Substantial performance clearly referable to the lease may give the lease full effect.
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An oral modification is invalid if both the original lease term and the remaining period after modification exceed the period specified in the controlling statute of frauds.
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…in most States, the parol evidence rule prevents the variations of the terms of a written contract by oral testimony. The statute of frauds makes unenforceable oral contracts to leave property by will, and statutes regulating the making of wills universally require that those instruments be in writing. There is no doubt that…