254 Final Exam Lecture Notes.  Purdue University MGMT 254

Writing
I. Introduction and History of Statute of Frauds
A. General rule
1. The general rule is that a contract does not need to be put in
writing in order to be enforceable. An oral contract is in every way
as enforceable as a written contract.
Does Not need to be in writing to be enforceable
Example: A agrees to pay B for work at a salary of $250,000 per year.
or: A agrees to pay B $750,000.00 to write a screenplay.
or: A agrees to sell B his bicycle for $450.00.
All examples are enforceable because they do not have to
be in writing
2. The exceptions to that general rule arise from statutory
requirements that certain types of contracts must be in writing to
be enforceable.
The exception is statute that have been adopted can make certain
contracts enforceable.
B. History
1. During the 14th Century English law developed the action of
assumpsit. This was the first legal theory that would permit a
person to sue for damages for breach of a contractual promise.
What this meant was that enforcement of a contract could be had
on the basis of the testimony of witnesses. What this really meant
was that fraud and perjury became alarmingly common in the
courts. People would bring witnesses in to lie in order to get there
worth for damages. It seems that in the good old Middle Ages,
people were willing to suborn perjured testimony in order to suit
their own ends.
Had to bring in third party and if no witnesses you will get to court
and you have a witness saying you made the deal
2. As a consequence of this, in 1677, Parliament enacted a law
entitled a "Statute for the Prevention of Frauds and Perjuries."
3. Section 4 of the original Statute of Frauds applied to:
a. Suretyship promises.
b. Promises made upon consideration of marriage.
c. Promises relating to interests in real estate.
d. Agreements not to be performed within one year.
4. Section 17 of the original Statute of Frauds applied to:
a. Contracts for the sale of goods of ten pounds sterling or more.
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