Commercial Division Blog
Posted: November 30, 2020 / Categories Commercial, Contracts
Admission to Existence and Essential Terms of Oral Agreement Defeats Statute of Frauds
On November 17, 2020, the First Department issued a decision in CAS Mkt'ing & Licensing Co. v. Jay Franco & Sons, Inc., 2020 NY Slip Op. 06704, holding that admissions to the existence and terms of an oral contract defeated the Statute of Frauds, explaining:
[D]efendant's argument that the parties' contract is unenforceable under the statute of frauds fails, because defendant's admission to the essential terms and actual existence of the alleged oral contract is sufficient to take the agreement outside the scope of the Statute of Frauds.
(Internal citations omitted).
Contract law--usually straightforward--has traps for the unwary, like the requirement that some contracts be in writing (the statute of frauds). And as this decision shows, sometimes there are ways to escape from those traps. Contact Schlam Stone & Dolan partner John Lundin at firstname.lastname@example.org if you or a client face a situation where you are unsure how to enforce rights you believe you have under an oral contract.