Under the circumstances, California could achieve its subsidiary policy of enforcing contracts while recognizing that, in light of Nevada's strong interest in the case, it need not apply its statute of frauds
in this specific case.
The provisions of the Statute of Frauds
at issue in the email cases are those related to the two formal requirements for compliance, a note or memorandum and signature, "unless the agreement upon which the action is brought, or some memorandum or note thereof is in writing and signed by the party to be charged therewith or some person thereunto by him lawfully authorized.
There, the court said that because the transaction was not subject to Article 9 and obviously not subject to the statute of frauds
requirement in UCC section 2-201 because it was not for the sale of goods, that left only the statute of frauds
requirement in section 1-206.
The court held the Statute of Frauds
rendered the contract unenforceable because the agreement involved an interest in real property and it was not in writing.
The use of electronic signatures on contracts transmitted electronically should satisfy the signature requirement of the Statute of Frauds
114) Employed over the years to guard against fraud and discourage perjury, the Statute of Frauds
continues to require written contract in certain instances to "promote certainty and deliberation .
There is no precise statute of frauds
governing government contracts, but "the concept is well established that the Federal Government must be protected from fraud and cannot be legally bound by contract in the absence of a written agreement.
Accordingly, it would appear that such electronic communications are in writing for the purpose of the Statute of Frauds
and the Sale of Goods Acts.
In 1952, after the advent of telegrams and telexes but before e-mail and the World Wide Web, the drafters of the UCC included a statute of frauds
Section 2-201 of the Uniform Commercial Code states the Statute of Frauds
for contracts involving the sale of goods.
Claims by Union based on alleged oral representations by Ernst were barred by the statute of frauds
, which requires that a representation concerning the credit of a third person be in writing to be admissible as evidence.
Coverage includes such topics as the treatment of missing or uncertain contract terms; non-conforming acceptances, and modifications; how the UCC codifies the Statute of Frauds
and the Parol Evidence Rule; express and implied warranties and disclaimers permissible responses by the buyer to a breach; anticipatory repudiation; the UCC's risk; allocation rules; and much more.