Question

In this module you have read about when a contract is required to be in writing. Additionally, you have learned that once a writing of a contract is made, there are limited circumstances in which outside oral evidence will be allowed to explain the contract.

Using what you have learned in this module, please answer eaceh of the following questions as completely as possible:

When is a writing required under the statute of frauds?

Answer 1

A writing is required under the statute of frauds for contracts involving real estate, those not performable within one year, sale of goods above a certain value, guarantees, consideration of marriage, and interest in land. The parole evidence rule limits the use of oral evidence to explain written contracts, with some exceptions.

Step-by-step explanation:

Under the statute of frauds, a writing is required for certain types of contracts to be enforceable. These typically include contracts for the sale of real estate, contracts that cannot be performed within one year, contracts for the sale of goods above a certain value (as specified by the Uniform Commercial Code), contracts to pay the debts of another, contracts in consideration of marriage, and agreements for the transfer of an interest in land. The purpose of requiring a written contract is to prevent fraud and misunderstandings by ensuring that there is clear evidence of the agreement and its terms.

Additionally, the principle of parole evidence rule comes into play once a written contract is established. This legal doctrine limits the use of outside oral evidence in explaining or changing the terms of a written agreement. Certain exceptions apply, such as the clarification of ambiguous terms, evidence of fraud, or to show that the contract is void or voidable.