Question

The statute of Frauds states that certain types of contracts must be in writing. Does the coverage of the statute of frauds make sense as it currently stands? Would it be better to expand the law and require that all contracts be in writing? Or should the law be done away with altogether? Explain each answer in details ..

Answer 1

Statute of fraud as a part of contract law was enacted in the year 1677 in the British parliament to prevent the case of fraud, voluntary violation of truth and cases of perjury. Later on, it was adopted in the USA, though different state laws are also in place. Regarding its importance and significance, it still holds in present time, as scope of fraud and perjuries have increased significantly. Though, it should be amended, modified and expanded according to the present day requirements. For example, provision of $500 or more worth of sale of good to take place in writing was good enough when the statute of fraud was passed. But, now it is obsolete and amount should be increased as there are many goods and services that command higher amount than $500 and based on oral contract. Further, the provision of marriage should be in writing, but by that time when the statute of fraud, was created, the same sex marriage, live-in relationship and other forms of cohabitate was not in practice. But, these developments have now taken place, so statue of fraud needs expansion. Hence, coverage should be made more broad so that it maintains full relevance.

It would not be wise to include all types of contract to be in writing, because it will increase the cost of delivering services and will either reduce the profit margin of the goods and service provider, or increase the price burden to the consumers. For example, a repair service provider, who works on a daily basis, will work on the basis of implied contract. If going through the written contract, then he or she may be exploited and his profit margin will also be reduced, a demoralizing factor for him. So, statute of fraud should be expanded, but it should not made it necessary for all the contracts to be in writing.
Though, the statute of fraud has its own significance as there are many contracts such as buy of real estate properties, where the considerations are in big amount and scope of fraud is big. So, statute of fraud should be in place with its expanded or modified version, suitable to the present day requirement.