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Question One
1) Identify
The areas of the law in this question are Statute of Frauds and the Doctrine of Part Performance.
2) Explain
The law does not generally require contracts to be made in writing or in any other formality. However, there are exceptions which require contracts to be in writing, others to be evidenced in writing, and others to be by deed. If these exceptions do not meet the formalities required by law, then;
• The contract may be void, which means it has no legal effect, or
• The contract may be unenforceable. An unenforceable contract is a legal contract; however, the parties cannot rely on the courts to resolve their dispute. Also, since the contract is valid, good title to any property may be obtained by a third party from either parties of the unenforceable contract.
Contracts which must be made by deed
A deed can often be referred to as a ‘formal contract’, as opposed to simple contracts, which are contracts not made by deed. In Western Australia (W.A.), s 9 of the Property Law Act 1969 (W.A.) states that a deed is required to be in writing, signed by the party to be bound, and signed by one witness. Furthermore, the deed is deemed to be sealed when it is signed and expressed to be sealed; and delivery is the intention to be legally bound. Contracts which must be made by deed are;
• Gratuitous promises,
• The appointment of a Power of Attorney,
• The sale of a ship,
• Some contracts made by corporations, and
• Leases of land exceeding the period of three years.
Contracts m ...