Statute of Frauds
Definition of 'Statute of Frauds'
The purpose of the Statute of Frauds is to prevent fraud by requiring that certain types of contracts be in writing. This makes it more difficult for people to enter into contracts that they do not understand or that they are not aware of. The Statute of Frauds also helps to protect people from being taken advantage of by unscrupulous individuals.
There are a few exceptions to the Statute of Frauds. For example, a contract that is not in writing can be enforceable if it is supported by a written memorandum or if it is based on part performance.
If a contract is not in writing and it falls under the Statute of Frauds, it is considered to be unenforceable. This means that the person who did not sign the contract cannot enforce it. However, the person who signed the contract can still enforce it.
The Statute of Frauds is a complex law with many exceptions. If you are considering entering into a contract that falls under the Statute of Frauds, it is important to speak to an attorney to make sure that the contract is in writing and that it is enforceable.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.