Contracts do not have to be in writing to be enforceable. However, certain type of contracts must be in writing to be enforceable.
The Statue of Frauds adopted by 49 out of 50 states, Louisiana being the exception, details types of contracts which must be in writing. In addition, there are minimum requirements that the writing must contain to be enforceable.
The types of contracts that must be in writing are
- Contracts to answer for the debts of another
- Contracts made upon the consideration of marriage
- Contracts which cannot be performed within one year from their making
- Contracts to sell any interest in real property
- Contracts of executors or administrators to answer for the duty of the decedents
- Contracts for the sale of goods for the price of $500.00 or more.
Requirements for the contract
-
Writing
a. Need only be a memorandum
b. May be more than one document
c. Permanent
(1) Must be retrievable recording
(a) Electronic
(b) Physical
2. Enough content in the writing to identify the essential terms of the contract
a. Subject matter of the contract
b. Parties to the contract
c. Essential terms
3. Signed by the party(s) to be charged
a. Must have intent to sign
b. Symbol adequate
c. Electronic signature adequate
Excerpt from We TEACH the Business of Medicine Series™
