In Terzis v. Pompano Paint and Body Repair Inc., 38 Fla. L. Weekly D6a (Fla. 4DCA 2012), a Florida contract law case, the Florida Fourth District Court of Appeal, held that an oral contract for the storage of a boat that was month to month and without a definite term was not subject to a statute of frauds defense. In this case, the boat owner stored the boat and paid the storage facility $100.00 per month. The boat was subsequently stolen from the storage facility and was returned damaged and missing engines. The boat owner sued the storage facility for the damages.
Florida Statute of Frauds
The statute of frauds requires that contracts for more than one-year in length must be in writing in order for them to be enforceable by a Court. The purpose of this harsh rule is to encourage parties to have their business dealings and contracts in writing. In this case, the storage facility sought to have the boat owner’s Complaint dismissed on the basis of the statute of frauds since the contract was not in writing. The boat owner argued that the oral contract was completed each month when he made his monthly payment. The trial court agreed with the storage facility and dismissed the Complaint on the basis of the statute of frauds.
Florida Oral Contracts
The Florida Fourth District Court of Appeal reversed the dismissal of the Complaint finding that the statute of frauds did not apply. The appellate court reasoned that since there was no term to the contract that it was of an indefinite period of time and logically it could be performed within one-year. In that instance, the statute of frauds did not apply since nothing according to the oral contract suggested that the contract would last longer than one-year. The statute of frauds only applies if a contract could not possibly be performed in one-year. Looking at it another way, each month that the boat owner paid the fee could be considered to be a separate and new contract that was completed each month.
Florida Contract Best Practices
Get your contract in writing to avoid possible disputes and defenses such as in this case for the statute of frauds. Essential terms for your contract should include its term, price, and what each party is obligated to do and the deadlines for the same.
Related Topics: Miami Contract Lawyer, Florida Contract lawsuits, Florida Contract Breach, Florida Contract Drafting
