Effects of Contracts within the Scope of the Statute

Question

What are the effects of Contracts within the Scope of the Statute? 

Answer 1

The Statute of Frauds makes an oral contract unenforceable. Even though no action may be brought on the contract itself, contract still exist for erstwhile purposes. The Statute has these implications:

1. The court will not permit the repudiating party to gain further advantage by allowing recovery of a down payment after her own breach.

2.  A party who has accepted goods and services under a contract that is unenforceable will not be able to retain any benefit without paying for it (the other party will have a quantum meruit claim).

3. A written memorandum brought into existence after the contract was formed but before the action was launched will suffice.

4. The defendant must expressly plead the statute as a defence to the legal action.

5. An oral contract may effectively vary or dissolve a prior written contract even though the oral contract could not itself be enforced.

6. Only the party who has signed can be sued.