What is the Statute of Frauds?

The Statute of Frauds is an important rule of contract law in Michigan. It requires certain types of contracts to be in writing in order to be enforceable. The Statute of Frauds was created to protect parties in contracts from misunderstandings and fraud, and to reduce false claims. In Michigan, the Statute of Frauds applies to the following types of contracts: contracts that cannot be performed within one year; contracts of suretyship or guarantee; contracts that involve the transfer of real estate; contracts for the sale of goods over $500; and contracts to pay the debt of another. In addition, the Statute of Frauds requires that the written contract must include all of the terms of the agreement that are necessary to make it enforceable. This includes the names and addresses of the parties, the date of the contract, a description of the subject matter of the contract, and the consideration. The contract must also be signed by the party to be charged. The Statute of Frauds is important because it reduces the possibility of false claims and misunderstandings in contracts. It prevents the parties from denying the existence of the agreement if there is no written contract. Without the Statute of Frauds, contracts could be difficult to enforce if one of the parties denied that the agreement ever existed.

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What is the Statute of Frauds?

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