Understanding the Statute of Frauds

Sep 2, 2024

Statute of Frauds: Sufficiency of Writings

Key Concepts

  • The statute of frauds requires a contract to be evidenced by a writing, not necessarily be in writing itself.
  • A writing must satisfy the statute to allow proof of a contract's existence.

Case Study: Crabtree v. Elizabeth Arden Sales Corporation (1953)

  • Background:
    • Nate Crabtree was in employment discussions with Elizabeth Arden Sales Corporation.
    • He left the company when terms of the agreement were not met.
    • Elizabeth Arden denied a two-year employment agreement existed.
    • The statute of frauds applied since the two-year agreement could not be performed within one year.

Analysis of Writings

  1. Initial Memorandum

    • Created by Arden's secretary on September 2, 1947.
    • Details salary and employment terms labeled 'employment agreement with Nate Crabtree.'
  2. Payroll Change Card

    • Prepared on September 30, 1947, effective October 22.
    • Included salary terms, job classification, and initials of an authorized representative (RPJ).
  3. Second Payroll Change Card

    • Prepared by the comptroller after six months.
    • Noted salary increase terms and included comptroller's signature.
  • None of these writings were signed by Crabtree, yet they collectively satisfied the statute.

Legal Principles

  • Restatement Section 132:

    • Multiple writings can satisfy the statute if they relate to the same transaction and include a signature by an authorized representative.
  • Restatement Section 133:

    • A signed writing not intended as a contract memorandum can satisfy the statute unless related to marriage.
  • Restatement Section 134:

    • A signature can be any symbol intended to authenticate a writing.
  • Restatement Section 135:

    • Memorandum must be signed by all parties; otherwise, enforceable only against the signers.

Implications

  • Crabtree could use these writings against Elizabeth Arden, but not vice versa.
  • In disputes involving the statute of frauds, identify which party the writings are used against.

Conclusion

  • Writings do not need to be the contract itself; the contract may be oral.
  • Future lessons will cover electronic records and real estate contracts.