Question

Does the Statute of Frauds (a legal principle from the 1600s) still make sense in today's commercial world? Why or why not?

Answer 1

Statute of fraud is relevant and it still makes sense, because it helps to protect the interest of the parties involved and prevents the scope of fraud by making certain types of contract to be in writing. Besides, the statute of fraud makes the high value transaction of more than $500 to be in writing, that brings clarity and court of law can give judgement with a higher level of clarity and precision. It brings benefits to the aggrieved parties and it is the ultimate aim of the justice. It is facilitated when the statute of fraud is applied.

Precisely, the statute of fraud is applied in 4 types of contracts that are:

1. Transaction of goods having value of more than $500

2. Buy & sale of land or other real estate properties

3. Marriage contracts

4. Suretyship contract

5. A contract that has to be performed after more than one year of the formation of the contract

Further, statute of fraud has been passed in the distant past, but it has become the basis of the many modern day laws such as provisions of uniform commercial code and other nations have also taken the reference from the statute of fraud. It makes it to be relevant, even today’s business environment.