- June 10, 2021
- Posted by: administrator
- Category: Blog
Whenever we deal with others on certain conditions, it is better to get such things into writing for better record and proof in case of any misunderstandings. We do contracts with others many times, but we do not give much importance to these contracts. But then it becomes much more important when we have to face a clash in completing such contracts.
Today we are going to explore the most asked query that a contract must be in writing to be enforceable if its performance is impossible within one year or is it compulsory for validation of such agreements that are oral not in writing. We also look at every detail that makes a contract valid and void. Also precautions we must take while making any contract with others.
Types Of Contracts
Before we go through the details of contracts and working mechanisms, you should be well aware of the types of arrangements that exist and are considered valid.
By the name of this type, you can easily understand that these contracts are not in writing but orally being agreed upon certain conditions. We do most of these types of contracts in our day-to-day lives. Like buying groceries, errands services, etc. These contracts are mostly based on a short time. The status of frauds also validates the oral contracts if these contracts are according to the law.
The second and well-known kind is the written contracts. Almost every person knows about written contracts. These types of contracts are in writings, and both parties endorse the contracts. This must be a task, and both parties are agreed upon the fulfillment of such contract. In case of any dispute, such a contract can solve the matter, and the court decides which party is not fulfilling the contract.
Statute Of Fraud
A contract must be in writing to be enforceable if its performance is impossible within one year, comes under the Statute Of Fraud. It is a regulating statute that helps to reduce the chance of fraud or unfulfillment of any contract.
In the Statute of fraud, it is clearly said that a contract must be in writing to be enforceable if its performance is impossible within one year. So if it is not written from the statute and the relevant court of contract does not provide any protection to any binding party.
If we go into detail of this specific section of the statute of fraud it defines that you should make a contract with other parties in written form if the tenure of such contract is one year or exceeding that.
Of course, our daily routine of contracts is not compulsorily should be in written form. You can understand by example if we need to get our lawn mowed. It is unnecessary to get the contract in written form as it is for only one day.
Terms & Conditions For A Validate Written Contract
Until now, you have understood that a contract must be in writing to be enforceable if its performance is impossible within one year.
If you are looking for how to write such a contract that should be valid and enforceable by the law.
You should follow the rules and regulations while writing the contract. Some of the important aspects that you should consider while writing a contract should be the following.
- The object of the contract should be valid and lawful. Any kind of object that is unlawful and illegal will be no binding on such a contact.
- You should specifically mention the tenure of the contract. If there is not a time-bound section in the contract that the contract is not legally valid.
- Both of the parties should agree upon and endorse the contract for validation.
- The rule of purpose and acceptance in the contract should be visible.
- Any contract that is written and endorsed by force is not legally binding and considered void by law.
We hope you have cleared all of your doubts about the query of a contract that must be in writing to be enforceable if its performance is impossible within one year. But in the case of any further guidance and legal help, our experts are there for you. So you can contact us.
Frequently Asked Questions (FAQ)
What is the Statute of Frauds and what is its purpose?
Statute of fraud is the regulation law of the land that helps to regulate all the contracts enforceable. It reduces the chances of being a fraud by the contracting parties and in case of any fraud committed statute of fraud provides the damages in return.
What is the one-year rule on contracts?
If the contract is for one year or more than that it must be in written form for enforceability. If the contract is not written and the tenure of the contract is one year or more than that it will be considered a void contract.
What situations permit a contract discharge by the impossibility of performance?
In case of a natural disaster, the death of any party, unable to perform due to disability or any sort of issue that is not redressable will discharge the contract.