Business Assistant/Business Assistant.iso/legal/guide7_3/lharc6.exe/SFRAUD.TUT

Text File | 1991-06-27 | 18.3 KB | 379 lines

#help.tut Extra help for tutorials
#define.stb On line glossary- definitions of legal terms
#2201.stb Uniform Commercial Code-- Statute of Frauds
                        STATUTE OF FRAUDS


     At good old "common law" a statute, called the "Statute of
Frauds", or better yet really a "Statute to Prevent Frauds"
required that certain deals had to be in writing to be valid-
and, typically--

1. A contract regarding real estate;
2. A promise to pay the debt or obligation of another;
3. A contract that couldn't be performed within one year.

At common law, such contracts had to be in writing and signed
(maybe even sealed) to be valid by both parties. The "Statute"
has had a number of changes. The major change engrafted on it is
that full performance of a contract, for example, if the money
has changed hands on a real estate deal, and, the buyer has
moved in, well, the contract just might be good. Don't count on
it though. If a contract is within the statute of frauds then
unless it is written- it is best to forget it! The purpose of
this tutorial is to heighten your awareness of the need to do
things in writing!

A special statute of frauds applies to "merchants" under the
Uniform Commercial Code. That is discussed elsewhere in this
program.

We follow with a list of the types of agreements that need to be
in writing, state by state.

This should be self-explanatory, but, the phrase, "agreement made
where consideration is marriage" refers to any agreement in which
some sort of money, property or gift is to be given to someone in
exchange for marriage, and also can be interpreted to refer to
pre-nuptial agreements.

What if you have entered into a deal that is within the state law
requiring a deal to be in writing and it wasn't in writing? See
an attorney- there may be a way to enforce the contract anyway.
First of all, Judges may make exceptions to the law, or, there
may be another way (another cause of action, that is to say,
another legal hypothesis that does not require a written
contract) to get around the statute of frauds. On the other hand,
don't count on it! Finally, if the list of agreements in the
State in question does not list the type of contract that you are
interested in, you nevertheless are always advised to do it in
writing!

GENERAL- The Uniform Commercial Code (U.C.C.) contains two
statutes
of frauds regarding the sales of goods between merchants.
These parts of the U.C.C. are available by pressing "S" and
selecting the U.C.C.- Statute of Frauds; to toggle back and forth
between the full text of the statutes and the tutorial, please
press "O." "Merchants" are those who deal regularly in a
business. A contract for sale of goods of a value of more than $
500 must be in writing, and signed by the purchaser.

    The U.C.C. specifically provides that between merchants if a
confirmation is sent by one side to the other (usually by the
seller to the buyer) the deal is good even without a signature-
there is an obligation of a businessman to object to a
confirmation within ten days when it is sent to another merchant.

    The U.C.C. also provides that a sale of securities must be in
writing to be valid, or, a confirmation must be sent a reasonable
amount of time after a deal is made, and then the deal is good,
unless an objection is made within ten days.

ALABAMA- Contracts for the sale of real estate; agreements to
make wills; promises to pay debts in decedent's] debts;
agreements not performable within a year.

ALASKA- Promise to pay the debt of another; agreement by executor
of estate to pay claim against the state; real estate agreements;
except leases of less than on year; agreement to make a trust;
agreement with real estate broker to sell property.

ARIZONA- Promise to pay debt of another; agreement not to be
performed within one year or within a lifetime; agreement to
transfer to someone property as a result of marriage; sale of
real estate; lease of real estate for over one year.

ARKANSAS- Promise to pay debt of another; convey real estate;
agreement that cannot be performed in one year; promise to pay
debt in an estate.

CALIFORNIA- ***** WARNING ******* California provides that any
agreement to modify a written contract must be in writing! READ
AND HEED! Agreement to pay the debt of another; sale of real
estate; lease of real property for more than one year; agreement
for real estate brokerage listing; agreement that will not be
performed within the lifetime of maker; agreement that cannot be
performed within a year; agreement to honor claim in estate.

COLORADO- real estate agreement; or lease for more than one year;
promise to pay a debt of another; agreement that is based on
promise of marriage.

CONNECTICUT- Agreement that cannot be performed in one year;
agreement for real estate transaction; leases for more than one
year; or a lease where the person is not put in possession;
agreement made where consideration is marriage.

DELAWARE- Agreement where consideration is marriage; agreement
for the sale of land; agreement to answer for obligation of
another; agreements to make a will; lease for more than one year;
agreement that cannot be performed in one year.

DISTRICT OF COLUMBIA- Agreement to answer for the debt of
another; agreement that may not be performed within one year;
lease of more than one year; agreement for real estate sale.

FLORIDA- Agreement to pay the debt of another; agreement made
where the consideration is marriage; contract for sale or other
conveyance of interest in real estate; agreement that cannot be
performed within a year; warranty agreement that is to be
enforced against a doctor; agreement to pay a debt in an estate.

GEORGIA- Promise to pay the debt of another; agreement that is
made where the consideration is marriage; agreement that cannot
be performed within a year; "landlord- tenant" agreement that is
for more than one year; contract for sale of land or other
interest in land; promise of an executor to pay a claim in an
estate.

HAWAII- Promise to answer the debt or obligation of another;
promise that is made where consideration is marriage; real estate
brokerage agreement; sale of land or interest in land; executor's
promise to pay a debt in an estate; agreement to list real
estate.

IDAHO- Agreement that is not performable within a year; agreement
to answer for the debt of another; agreement made where
consideration is marriage; agreement for lease of more than one
year; agreement for listing of real estate with broker; real
estate sales agreement.

ILLINOIS- Sale of real estate; agreement that cannot be performed
within one year; agreement to pay the debt of another; trust
agreements; promise of an executor to pay claim in estate;
agreement made on the promise of marriage.

INDIANA- Contract for selling real estate or interest in real
estate; warranties regarding medical treatment; agreement for
real estate brokerage; promise to pay the debt of another;
contract made where consideration is marriage; agreement to pay
claim in an estate; agreement to sell trees or timber; agreement
for sale of securities.

IOWA- Agreement for transfer of real estate; leases in excess of
one year; contracts that cannot be performed in a year; promises
made where consideration is marriage; promise to pay the debt of
another.

KANSAS- Agreement to pay the debt of another; lease of real
estate for more than one year; agreement to pay a debt in an
estate; sale or transfer of an interest in real estate; marriage
contracts (other than the marriage itself.)

KENTUCKY- Ratification of a contract after a person reaches his
majority; agreement made on the consideration of marriage;
transfer of any interest in real estate; lease for more than one
year; agreement for real estate brokerage; promise to pay the
debt of another; promise to pay claim in an estate; agreement
that cannot be performed within one year.

LOUISIANA- Louisiana is a civil law rather than common law state,
so, this gets tricky. Generally, the transfer of an interest in
real estate, unless possession has passed is to be in writing; as
is the sale of property worth more than $ 500 (there are
exceptions.) Please see an attorney trained in Louisiana Law for
more information.

MAINE- Any non-compete agreement; any agreement for sale of
interests in real estate; agreement to pay the debt of another;
contract that cannot be performed within a year; agreement to be
asserted against minor once he reaches majority; promise to pay
claim in an estate.

MARYLAND- Assignment or sale of interest in real estate;
agreement to answer for the debt of another; agreement where
consideration is marriage; contract that is not performable
within one year; promise to pay claim in an estate; agreement or
assignment of interest in a trust.

MASSACHUSETTS- Promise to honor a claim in an estate; agreement
to answer for the obligation of another; agreement where the
consideration is marriage; agreement for transfer of real estate
or an interest in it; agreement that cannot be performed within a
year; agreement to make a will or related agreements.

MICHIGAN- Agreement for real estate brokerage; agreements that
cannot be performed in  one year; agreement where consideration
is marriage; agreements to answer for the obligations of another;
leases of real estate for more than one year; agreement to
transfer real estate.

MINNESOTA- Agreements to answer for the obligation of another;
agreements that cannot be performed within a year; leases for
more than a year; agreement where the consideration is marriage;
agreement for transfer of real estate.

MISSISSIPPI- Agreements to answer for another's obligations;
agreement where the consideration is marriage; agreement for a
lease of real estate for more than one year; agreement to
transfer an interest or sell land; agreement that cannot be
performed or has a potential term of 15 months (NOTE- Fifteen
months, not one year); promise to pay debt in an estate.

MISSOURI- Agreement to answer for the obligation of another;
agreement for the sale or transfer of an interest in real estate;
agreement that cannot be performed within a year; agreement to
pay a claim in an estate; agreement where consideration is
marriage.

MONTANA- Agreement to answer for the debt or obligation of
another; agreement that will not be performed in a year;
agreement that is made where the consideration is marriage;
agreement to sell real estate; lease for more than one year of
real estate; agreement for real estate brokerage.

NEBRASKA- Agreement which is not  to be performed within a year;
agreement to answer for the debt or obligation of another;
contracts for the repurchase of corporate securities; lease for
more than one year; agreement where consideration is marriage.

NEVADA- All real estate conveyances; trust agreements; agreement
which cannot be performed within a year; contract to pay the debt
or other obligation of another; agreement where consideration is
marriage.

NEW HAMPSHIRE- Power of attorney to sell real estate; contract
that cannot be performed within one year; promise to pay the debt
of another or to assume obligation of another; contract for sale
of real estate.

NEW JERSEY- Agreement which cannot be performed within one year;
agreement made where the consideration is marriage; agreement to
pay debt or obligation of another; sale or interest in real
estate; agreement to honor claim in an estate.

NEW MEXICO- Agreements that cannot be performed within a year;
agreements for sale or lease of real estate; promise to pay
a debt or answer obligation of another; agreement based upon
marriage and promise to make a will or post-mortem gift.

NEW YORK- Contract for the sale of securities; sale of real
estate or lease for more than one year; other interest in real
estate; agreement that can not be performed within a year;
agreement to pay the debt of another; agreement to assign life
insurance policy or other insurance contract; real estate
brokerage listing and agreement; agreement where consideration is
marriage.

NORTH CAROLINA- Although of questionable constitutional validity,
a contract with a person of Indian blood (Cherokee) for over $
10.00 requires two witnesses and a writing, note that this does
not include persons who speak English; agreements to answer for
the debt or other obligation of a third party; mining leases (for
more than three years); sale of real estate or interest in real
estate.

NORTH DAKOTA- Agreement that cannot be performed within one year;
agreement for sale of real estate or an interest in real estate;
agreement to make a loan of over $ 25,000; promise to pay the
debt of another.

OHIO- A promise where the consideration is marriage; agreement
that cannot be performed within a year; agreement to pay the debt
or to answer for obligation of a third party; contract for the
sale or transfer of an interest in real estate; agreement or
promise made by a medical care provider related to "guarantees of
prognosis"; certain personal services contracts such as dancing
lessons, martial arts, health spa services must be in writing;
contracts where the consideration is marriage.

OKLAHOMA- Agreement for a lease of more than one year; contract
where the consideration is marriage; agreement for the sale of
real estate; agreement to answer for the debt of another or
obligation of another; agreement that cannot be performed within
a year.

OREGON- Agreement to answer for the debt of another; agreement
for sale of real estate; agreement for real estate brokerage;
agreement that cannot be performed within a year; agreement made
upon the promise of marriage; agreement for the lease of real
estate for more than one year.

PENNSYLVANIA- Interest in real estate other than lease for less
than three years; sale of securities; sales of personal property
for over $ 5,000; promises to pay other's debts.

RHODE ISLAND- Agreement for real estate brokerage; contract that
is for the sale or a transfer of an interest in real estate;
agreement to answer for the debt or obligation of another;
agreement to honor a claim in an estate; agreement where the
consideration is marriage.

SOUTH CAROLINA- Agreement for transfer of an interest in real
estate; leases for more than one year; promise to pay a debt or
answer for an obligation of another; representations concerning
credit of another must be in writing and signed; agreement when
the consideration is marriage; agreement that can not be
performed within a year.

SOUTH DAKOTA- Agreement that cannot be performed within one year;
agreement to make a loan; agreement for the sale of real estate
or a lease for longer than one year; agreement which is made upon
consideration of marriage; auction sales must have book entries
made by the auctioneer.

TENNESSEE- Agreement to pay the debt or answer for the obligation
of another; agreement for the sale of land; lease for more than
one year; agreement made where the consideration is marriage;
agreement to honor a claim in an estate; agreement that cannot be
performed within on year.

TEXAS- Agreement for brokerage of oil or other minerals;
warranties or guarantees made by medical service providers
(however, pharmacists are not covered); promise to pay a debt in
an estate; promise to pay the debt of another; lease for more
than one year, or transfer of interest in real estate; agreement
which is made on consideration of marriage; agreement that cannot
be performed fully within one year of making.

UTAH- Real estate transfers or leases for more than one year;
agreement to pay another's debt or to answer for the obligation
of another; agreement that cannot be completed within one year of
the making of the agreement; real estate brokerage agreement;
agreement where consideration is marriage; promise to honor a
claim in an estate.

VERMONT- Agreement made where consideration is marriage; agreement
for medical care; promise to pay the debt or to answer for the
obligations of another; sales or transfers of interest in real
estate; an agreement that cannot be performed within one year;
promise to honor a claim in an estate; action regarding
representations concerning the credit of another.

VIRGINIA- Agreement for the transfer of real estate; Agreement to
ratify a debt incurred by a minor once the minor reaches the age
of majority; promise to answer for the debt of another or other
obligation; agreement for real estate brokerage; agreement where
the consideration is marriage; agreement to honor a claim in an
estate; agreement that cannot be performed within a year; action
based upon a representation regarding the credit of another.

WASHINGTON- All leases for mobile home; lease for more than one
year (and must have notarization); agreement for real estate
brokerage; agreement where the consideration is marriage; promise
to honor a claim in an estate; agreement that will not be
performed within a year; promise to answer the debt of another;
real estate transfers.

WEST VIRGINIA- Agreement where the consideration is marriage;
agreement that cannot be performed within a year; promise to pay
a debt that a minor contracted, after the minor reaches majority;
agreement for a transfer of real estate, except for a lease of
less than one year; agreement that cannot be performed within one
year; agreement to honor a claim in an estate; agreement to pay
the debt or honor the obligation of another; representations
regarding the credit of a party are not actionable unless the
representation is in writing.

WISCONSIN- Transfers of real estate; a lease of more than one
year; agreement to pay the debt or answer for the obligation of
another; agreement where the consideration is marriage; agreement
that cannot be fully performed within a year of its being made.

WYOMING- Actions may not be brought regarding representations
made as to someone's credit unless the representations are in
writing; promise to pay the debt of another; agreement for the
transfer of real estate, or lease of more than one year;
agreement where the consideration is marriage; agreement than
cannot be performed in one year.