Is an oral contract legally binding?
Full Question:
Answer:
The statute of frauds is a law in every state which requires that certain documents be in writing, such as real property titles and transfers, leases for more than a year, wills, and sale of goods that have a price of $500 or more. The purpose of the law is to protect against false claims for payment from contracts that were not agreed upon. If a contract provides for the sale of goods with a price of $500.00 or more, this type of contract must ordinarily be in writing and signed by the “party to be charged” (e.g., the party who is being sued for breach of contract).
It has been held that a typed signature at bottom of vendor's e-mail satisfied requirement of writing, subscribed by the party to be charged under a statute of frauds. The court held that the vendor's act of typing his name at bottom of e-mail manifested his intent to authenticate the transmission, and copy of e-mail sufficiently demonstrated that intent. However, this was not a Washington court.
Other courts have held particular e-mails insufficient, in part, because they were "unsigned." However, the question may arise as to what constitutes a "signature" in the context of an e-mail for purposes of the statute of frauds. In some cases the courts have held that e-mail messages bearing the typed name of the sender, rather than a handwritten signature or an electronic copy of such a signature, were signed writings sufficient to satisfy the requirements of the statute of frauds.