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American Contract Law for a Global Age, 2017a

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Unit 14<br />

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CONTRACT DEFENSES<br />

Part Two<br />

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The Statute of Frauds<br />

FOCUS OF THIS UNIT<br />

The thing that lawyers call the statute of frauds is actually misnamed. In the<br />

United States, hundreds upon hundreds of statutes of frauds are in existence because<br />

“statute of frauds” is the term that has come to be used <strong>for</strong> any requirement that<br />

certain legal documents be in writing to be effective. The rules on the books today<br />

(and the vast majority of them are in the <strong>for</strong>m of a statute) do, however, all descend<br />

from a single act of Parliament that we may correctly call the Statute of Frauds, and<br />

it is the starting point to understand writing requirements in <strong>American</strong> contract law<br />

today.<br />

Begin When Writing Was Rare. In the early days of English law—the first few<br />

hundred years after the Norman Conquest, relatively few contracts were in writing<br />

because relatively few people could write. In Property class, you may have heard<br />

about conveying land by livery of seisin, the transfer or <strong>for</strong>mally handing over a piece<br />

of the sod in front of witnesses. In an age when almost no laymen (or nobles, <strong>for</strong> that<br />

matter) could write, most deals were oral.<br />

Over time, however, growth in trade and education meant that writings<br />

became more common and important, and more people sought to memorialize major<br />

transactions with a writing. This was helped by a system of creating deeds that could<br />

be recorded, so that people (especially the tax collectors) could tell who owned what.<br />

Writing had obvious advantages over oral transactions, since the latter depended on<br />

memory (which could be faulty) and on the honesty of the witnesses (which was not<br />

always perfect). Because of the intricacies of British judicial procedure, a class of<br />

professional witnesses would actually hang around courts of law waiting <strong>for</strong> work.<br />

They would willingly swear to anything, so long as they were paid <strong>for</strong> doing so. This<br />

situation created fertile grounds <strong>for</strong> fraud.<br />

Parliament Acts. In 1677, Parliament passed (with the assent of King Charles<br />

II) “An act <strong>for</strong> prevention of many Fraudulent Practices which are commonly<br />

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UNIT 14: THE STATUTE OF FRAUDS 259

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