On Jessica’s 21st birthday, her parents planned a large party for her. As part of the festivities, they hired a band, ordered $600 worth of vases for decorations, hired a company to set up tables and chairs, ordered $400 worth of balloons, and as a present to their daughter, gave her a small house to live in.
For each of the contracts listed below, identify whether or not the contract needs to be in writing under the Statute of Frauds. Provide detailed rationale for your decision.
Contract for the band
Contract for the vases
Contract to set up the tables and chairs
Contract for the balloons
Contract to transfer the house
Expert Answer
Under the statue of the fraud, certain types of contracts should be in writing to be enforceable in the court of law.
Contract for the band:
It is for the delivery of services, so it does not fall under the statue of fraud. As a result, it does not need to be in writing. Further, the contract is to be performed within the one year. It further ensures that the contract does not need to be in writing.
Contract for the vases:
It should be in writing because the value of the vases is $600 that is more than $500. As per the statute of the fraud, the sale of goods contract worth more than $500 should be in writing. According to this rule, the contract for vases should also be in writing to make in enforceable.
Contract to set up the tables and chairs:
This contract is for the services and is to be completed within the one year. So, it does not need to be in writing as it does not fall under the statue of fraud.
Contract for the balloons:
It is for the sale of goods by the value of goods is only $400 that is less than the $500. As per the statute of the fraud, the sale of goods contract worth more than $500 should be in writing. So, this contract should not be in writing.
Contract to transfer the house:
It deals with the buy and sell of the real estate property. Then, it should be in writing as per the statue of fraud. The given statute specifically mentions such contract involving the land or real estate property to be in writing to make it enforceable.