Most oral contracts are legally binding. There are a few exceptions, however, depending on the design of the agreement and the purpose of the contract. In many cases, it is best to draft a written agreement to avoid litigation. Indiana Code 26-1-2-201 expands the number of transactions that require a written agreement by listing each sale of goods for more than $500. Per Wehry v. Daniels, the objectives of the application of status to agreements selling goods: As with many things in the law, there are exceptions to this rule. There is a doctrine called “solawechselestoppel,” based on the argument that a person whose conduct incited another person to act in a particular case should not be allowed to take a position inconsistent with that behaviour to harm the other. In order for an Estoppel to remove a case from the requirements of the status of fraud, the party must show that the other party`s refusal to comply with the terms of that promise not only led to a denial of rights that was to confer the agreement, but also to undue and “unacceptable” prejudice and unjustified loss. The key issue is whether the letter is sufficient to make an enforceable contract. Under the statute, an enforceable contract for the sale of land must be proven in writing: (1), signed by the party against whom the contract must be applied or signed by its agent; (2) describe with sufficient certainty each party and the country; and (3) who, with sufficient certainty, gave the conditions for the promises and by whom and to whom the promises were made.
Blake V. Hosford, (1979), 180 Ind. About 175, 180, 387 N.E.2d 1335, 1340, trans. Johnson acknowledges that it signed one of the two documents that make up the memorandum as part of which the treaty must be applied and that the memorandum could be interpreted as appropriate to describe the parties and the cottage. Johnson argues, however, that the letter does not meet the third test of the Blake test and is not applicable because of the absence of essential conditions. We do not agree. So if your agreement is not covered by any of these exceptions, why bother to invest time and energy in negotiating the terms of agreement and writing them down? What is the function of these written chords that collect dust in your folder class? Most of the time, the parties to an agreement get what they expected to get to this point. In these cases, it does not matter whether they spent the time forcing the agreement to write. If things do not go as planned and a party does not get what it wants, the existence of a written agreement becomes important. In these cases, a well-written agreement on the important terms of the contract acts as an insurance policy. Indiana abides by the U.S. rule that requires parties to pay their own legal fees, without agreement, status or rule to the contrary.
Wernke v. Hallas (1992), Ind. App., 600 N.E.2d 117, 123. The parties agreed to share the legal costs of preparing the facts and proving ownership. However, this agreement was not reflected in the written contract and in any event did not contain any legal fees incurred to enforce the contract as a result of an infringement. Johnson`s assertion was not without merit. She and Sprague negotiated the sale of the cottage and made two small pieces of paper which, combined with a cheque payment, were sufficient to enter into a valid contract and to respect the status.