To Be Enforceable a Contract That Is Required to Be in Writing Must Include

Legal contracts are important agreements that define the terms and obligations between two or more parties. However, not all contracts are enforceable, especially those that are not properly documented. In this article, we will discuss the requirement for a contract to be in writing and what it must include to be enforceable.

The Statute of Frauds

The requirement for a contract to be in writing can be traced back to the Statute of Frauds, an old English law enacted in 1677. This law was created to prevent fraud and protect against false claims by requiring certain contracts to be in writing. The Statute of Frauds was later adopted in the United States and is now a common law principle.

What Contracts Must be in Writing?

Under the Statute of Frauds, certain contracts must be in writing to be enforceable. These types of contracts include:

– Contracts for the sale of goods with a value of $500 or more

– Contracts for the sale of real estate

– Contracts that cannot be performed within one year from the date of agreement

– Contracts to pay someone else`s debt

– Contracts for the sale of securities

– Contracts for the lease of real estate for more than one year

What Must a Written Contract Include?

A written contract that is required by law must contain certain elements to be enforceable. These elements include:

1. The names of the parties – The contract must clearly identify the parties involved. This includes their full legal names and any business or trading names.

2. The subject matter – The contract must clearly define the purpose and nature of the agreement. This includes the goods or services being sold, the property being leased, or the debt being paid.

3. The terms and conditions – The contract must outline the obligations and responsibilities of each party. This includes payment terms, delivery dates, and any warranties or guarantees.

4. Signatures – The contract must be signed by all parties involved in the agreement. This includes both the buyer and seller, landlord, and tenant, or any other involved parties.

Why Is a Written Contract Important?

A written contract is important because it provides evidence of the agreement entered into by the parties. It helps to avoid misunderstandings and disputes by clearly stating the terms and conditions of the agreement. Without a written contract, it can be difficult to prove what was agreed upon, which can lead to costly legal battles.

In conclusion, a contract that is required to be in writing must include the names of the parties, the subject matter, the terms and conditions, and signatures of all involved parties. Failure to comply with these requirements can render a contract unenforceable. Therefore, it is essential to ensure that all necessary elements are properly documented to avoid future legal problems.