American Contract Law for a Global Age, 2017a

equirements of a contract were met. Over time judges began shrinking the scope of
the statute and inventing exceptions for certain sets of facts. While many judges
strongly support the idea of the statute, many others would like to see it abolished,
being convinced that it causes more fraud than it prevents. The Restatement (Second)
of Contracts has an entire chapter entitled the “The Statute of Frauds” covering
sections 110 through 150. Skimming that chapter will give you some idea of the scope
and extent of exceptions that have developed.
The British Parliament effectively repealed the original Statute of Frauds in
1954, so it no longer applies in the place of its birth. The United Nations Convention
on the International Sale of Goods also does not contain a requirement that contracts
be in writing. Statutes of frauds are, however, alive and well in the United States,
creating an area where American contract law differs significantly both from civil
code countries (like most of Continental Europe, for instance) and even from other
common law countries. To be clear, contracts in other legal systems commonly are in
writing and those writings are given effect. Everyone recognizes that a writing can
add certainty to a transaction. The rest of the world is simply not as enamored with
the requirement of a writing as Americans are.
What Does It Mean To Be Within the Statute? Samuel Goldwyn, the movie
mogul, allegedly once said that “An oral contract isn’t worth the paper it’s written
on.” By now you should know that Goldwyn’s statement is not entirely accurate. Oral
contracts are just as enforceable as written ones—unless they fall within the statute.
Notice that language. A contract is said to be “within the statute” if a writing is
required. If a contract is the kind for which no writing is required, such as an
employment contract for a year, it is not “within” the statute.
Standing on MY LEGS. Two broad kinds of questions arise under the statute
of frauds. The first is which contracts are covered. The second is what counts as a
suitable signed writing. A complete list of contracts where writings are required
would vary greatly from state to state. Nonetheless, six “classic” categories derive
from the original English statute and are so common in American jurisdictions that
they are embodied in the overall list contained in section 110 of the Restatement
(Second) of Contracts and—for sales of goods—section 2-201 of the Uniform
Commercial Code. You should read those two legal authorities now.
Law students for generations have memorized these six categories, many of
them using the mnemonic MY LEGS, which we offer you in the list below. We
recommend that you briefly review the Restatement and the UCC sections cited in
the list.
M Contracts in contemplation of MARRIAGE. This rule covers, for
example, prenuptial agreements or family promises to convey property to the new
couple. See Restatement (Second) of Contracts § 124.
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UNIT 14: THE STATUTE OF FRAUDS 261