It is in this lesson that we will discuss the status of fraud. This is the rule that requires certain contracts to be written and allows certain contracts to be verbally and enforceable. We will therefore know what types of contracts need to be written in order to be applicable. Okay, so I`ll say it again, I`ll say a million times, valid contracts must have agreements, counterparties, contractual capacity, legality and sometimes have to be written. And in this lesson, we will talk about when there are situations where contracts have to be concluded in writing. As a general rule, all contracts are perfectly valid and enforceable. So when I say, “I`m selling you my bike for $100, and you say `I`m accepting`, we`ve signed a contract, and it`s enforceable. There is now a legal doctrine called the Fraud Act. It`s an old word. Come from the common law of England. The law of fraud is only a rule that requires certain contracts to be written in order to be enforceable. And there`s a great way for all law students to learn an acronym to tell us what types of contracts need to be written to be enforceable under the law of fraud. And the acronym is “MYLEGS,” that is, M-Y-L-E-G-S, each of these letters represents a word that helps us remember what types of contracts need to be written.
Thus the M in “MYLEGS” means first of all marriage. Well, some parts of the acronym MYLEGS are more common than others and this is one that is not super common. But marriage promises must be written to be enforceable. Well, that`s not it, it`s a promise to marry someone, which means things like a wedding. It`s a promising reflection of marriage, we say, “Well, we`re getting ready to get married, let`s make this marital agreement.” This kind of thing has to be written. The Y in “MYLEGS” is written for the year. In particular, a contract that cannot be executed within one year must be written. This does not mean that a contract that is unlikely to be executed within one year means a contract that cannot be executed in one year.
So if you have a lease that says, “I agree to rent this property for five years.” Can a five-year lease be completed in one year? No no. So it has to be written down. But if you own a plant with a capacity of 10 aircraft per year and you get a contract to sell a hundred aircraft, does that have to be written? Probably not because even if you can`t make 100 planes in a year, it`s not impossible. Maybe you could do a quick climb. The very terms of the contract do not prevent you from executing it within one year. So it wouldn`t be under the Y in the MYLEGS. Now the L is in “MYLEGS” for the earth. Any contract for the sale of interest on land, be it a sale, a lease of land units and relief, must be entered into in writing for all land sales contracts.
Now the E is in “MYLEG” for the executor, and it`s really very unusual, but we have to have an E, we can`t just have M-Y-L-G-S. That wouldn`t be great and accurate. So we have this E for the executor. If an estate administrator, when a person dies, promises to pay a debt of the deceased on his own resources from the will to the deceased, that promise must be made in writing.