Written Contracts

Date Posted: Monday, July 22, 2024
Posted In: Legal Notes

(Updating the August, 2013 Legal Notes)

Per Maine’s “Statute of Frauds” (33 M.R.S. § 51) certain types of contracts must be made in writing and signed by the parties to be enforceable. Those contracts of municipal interest include: (1) any contract for the sale of land or any interest in land; (2) any agreement that requires more than one year to perform; (3) any contract to pay a debt discharged in bankruptcy; (4) any agreement to give, bequeath or devise any property by will; and (5) any agreement to assume the debt or default of another.

Also, Maine’s “Uniform Commercial Code” generally requires that contracts for the sale of goods for a price of $500 or more be in writing and signed by the parties (see 11 M.R.S. § 2-201).

Even when not legally required, putting a contract in writing is an excellent idea, for the following reasons:

A written contract can reduce the potential for misunderstanding and conflict by clearly stating the goods or the services purchased; the deadlines for commencement and completion; the time, manner, and amount of payment; the grounds and procedure for termination; the method for resolving disputes; and any other matters that may be crucial to a clear understanding and satisfactory performance of the agreement.
A written contract is also proof that a contract does in fact exist and is the best evidence of the contract’s terms and conditions.

Unless a contract is required to be in writing, an unwritten or oral agreement is nevertheless legally enforceable, although proving its existence and its exact terms could be difficult.

See MMA Legal Services’ “Contracts & Competitive Bidding” Information Packet for additional guidance and samples relating to contracts, competitive bidding, public works project requirements, and related legal considerations, available in the “Legal” section of MMA’s website (www.memun.org/legal). (By S.F.P.)