Question

Week 4 - Statute of Frauds & Parol Evidence Rule

Explain the difference between the statute of frauds and the parol evidence rule and its impact on the enforceability of contracts. Provide an example of a type of contract that must satisfy the statute of frauds.

Answer 1

Statute of Frauds is a doctrine that states that certain contracts need to be in writing in order for them to be enforceable. On the other hand Parole evidence rule is a doctrine where no further evidences are accepted by court in case of a contract dispute where a written contract exists.

The key difference between them can be seen in the

• Purpose: The purpose of statute of frauds is to categorize certain contracts as written agreements. The purpose of parole evidence rule is that the written contract should be considered as the final agreement between the parties.
• Exception: Exception to statute of frauds can happen through promissory estoppel or partial performance clause. Exception to parole evidence rule are multiple and includes likes of fraud, mistake, clerical error, etc.

An example of statute of frauds contract is sale of any product whose value exceeds $500. For example, sale of car is covered under statute of frauds and must be in writing.