What Contracts Must Be in Writing under the Statute of Frauds Philippines
The Statute of Frauds is a legal principle that requires certain contracts to be in writing in order to be enforceable in court. In the Philippines, the Statute of Frauds is enshrined in Article 1403 of the Civil Code. The law states that the following contracts must be in writing to be valid:
1. Sale of real property: Any agreement for the sale of land, buildings, or other immovable property must be in writing. This includes not only outright sales, but also contracts for the transfer of ownership through a mortgage, lease, or other means.
2. Sale of personal property: Contracts for the sale of goods worth more than Php 500 must also be in writing. This includes everything from cars and appliances to jewelry and artwork.
3. Lease of real property: Agreements for the lease of land, buildings, or other immovable property must be in writing if the term of the lease is for more than one year.
4. Suretyship or guarantee: A contract where one person agrees to stand as surety or guarantor for another must also be in writing. This ensures that both parties are fully aware of the terms and conditions of the agreement, and that the surety is fully aware of their obligations.
5. Contracts for the sale of shares of stock: Any agreement involving the sale or transfer of shares of stock in a corporation must be in writing.
6. Contracts that cannot be performed within one year: If a contract cannot be completed within one year of its signing, it must be in writing.
7. Contracts for the creation or transfer of real rights: Real rights refer to things like mortgages, easements, or other rights in land or buildings. Any agreement to create or transfer these rights must be in writing.
In addition to these specific types of contracts, any agreement that involves the performance of a duty that is prohibited by law must also be in writing. This includes everything from contracts for the sale of illegal drugs to agreements to commit fraud or other crimes.
It is important to note that the requirement for a written contract does not mean that the contract must be formal or elaborate. In many cases, a simple agreement signed by both parties will suffice. However, it is always important to ensure that the terms of the contract are clear and unambiguous, and that all parties involved fully understand their rights and obligations.
In conclusion, the Statute of Frauds in the Philippines requires certain contracts to be in writing in order to be enforceable in court. This includes agreements involving the sale or transfer of real or personal property, leases, suretyship or guarantees, stock transfers, contracts that cannot be performed within one year, and the creation or transfer of real rights. As a copy editor, it is important to ensure that any written contracts are clear, concise, and fully comply with the requirements of the law.
