What is the Statute of Frauds in Oklahoma?

What the Statute of Frauds is consists of a legal doctrine whose creation is to prevent fraudulent claims. Further, it ensures the enforceability of certain types of contracts. In Oklahoma, the Statute of Frauds requires that certain agreements be in writing and signed by the party to be enforceable. This requirement helps provide clear evidence of the terms and existence of the contract. Thus, this reduces the likelihood of disputes and misunderstandings. This article will discuss the specifics as well as gray areas of these statutes.

What is the Statute of Frauds?

The Statute of Frauds mandates that specific types of contracts must be in writing with valid signatures to be legally enforceable. The primary purpose of this is to prevent fraudulent claims from happening. For example, a contract someone insists exists when there is no written evidence to support such a claim. This helps to minimize the chances of someone claiming verbal negotiations as a formal contract they want to enforce. Therefore, for a breach of contract to be credible, there must be a real and tangible contract. In Oklahoma, the Statute of Frauds is codified in Title 15, Section 136 of the Oklahoma Statutes.

Examples of Contracts Covered by the Statute of Frauds

The Statute of Frauds is useful to people in many different contract dispute scenarios. A few of these include the following:

1. Contracts for Real Estate: Any agreement to sell or transfer an interest in real property must be in writing. This includes all sales, leases for more than one year, and any easements.
2. Contracts Not to Be Performed Within One Year: Any contract that you cannot fully perform within one year from the date it happens must be in writing. This rule also applies to contracts with terms longer than one year or that specify the performance happening over any period exceeding one year from the date of the contract.
3. Promises to Pay Another’s Debt: A promise or agreement to pay the debt of another person must be in writing to be enforceable. This is also a suretyship agreement.
4. Contracts for the Sale of Goods Over $500: Under the Uniform Commercial Code (UCC), which Oklahoma adopts, contracts for the sale of goods priced at $500 or more must be in writing to be enforceable.
5. Agreements Made for Consideration of Marriage: Any agreement made upon the consideration of marriage, except mutual promises to marry, must be in writing. This will typically include prenuptial agreements.

You should consult with a business attorney if your contract falls under any of these categories. You don’t want to find yourself in a voidable contract situation if proper procedure wasn’t followed. A Lawyer will review your documents and circumstances to help make sure everything is legally sound.

Common Defenses to the Statute of Frauds

While the Statute of Frauds requires certain contracts to be in writing, there are several defenses and exceptions that could be useful under the right circumstances:

1. Partial Performance: If one party has partially performed the contract, such as making payments or taking possession of property, a court may enforce the contract despite the lack of a written agreement. This is particularly applicable in real estate transactions.
2. Promissory Estoppel: If a party reasonably relies on the oral promise of another to their detriment, there may be an argument of promissory estoppel. However, you must show that the reliance was foreseeable and that injustice is only avoidable by enforcing the promise.
3. Admissions in Court: If the party being sued admits in court that a contract exists, the Statute of Frauds may not be used as a defense. This admission must be clear and unequivocal.
4. Custom-Made Goods: In the sale of goods, if the manufacturing of goods was specially for the buyer and are not suitable for sale to others, the Statute of Frauds may not apply, even if the contract is not in writing.
5. Merchant’s Confirmatory Memo: In transactions between merchants, a written confirmation sent by one party and not objected to by the other party within ten days can satisfy the writing requirement under the UCC.

Before trying to employ these to your situation, you should always consult with a business attorney. They can help you know exactly what you’re looking for when it comes to any sketchy contractual situations. Don’t let yourself get caught up in an is it or isn’t it legitimate contract dispute.

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Tulsa County Business Lawyers

The Statute of Frauds in Oklahoma is a critical legal principle that ensures the enforceability of certain contracts by requiring them to be in writing. Understanding which types of agreements fall under this statute and the common defenses against it can help individuals and businesses navigate contract disputes more effectively. While the Statute of Frauds aims to prevent fraudulent claims, the exceptions and defenses available ensure the honoring of legitimate agreements even if they are not in written form. Our business lawyers here at Kania Law Office know the nuances able to help you with your contract. We will review all the facts and give you the best options available to you. Call us at 918-743-2233 for a free and confidential consultation, or contact us via our Ask A Lawyer feature.