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Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis Case Study

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Introduction to the Case

Pearl, an IT representative at Pi Computer Systems, unexpectedly reunited with Darrell, a former high school acquaintance, while shopping. Darrell had recently started a small custom-computing business and needed equipment, web design, and, later, software troubleshooting. Pearl helped him informally at first and later agreed to design his website for $400 and troubleshoot his software for an additional $400.

During this period, Pearl and Darrell spent significant time together, became romantically involved, and eventually became engaged. Darrell promised Pearl full-time employment with commissions once his business expanded, and Pearl accepted his marriage proposal. They decided to marry immediately, partly because Darrell realized he could save money by combining the wedding with Pearl’s sister’s ceremony.

Before the wedding, Darrell asked Pearl to sign a prenuptial agreement that required him to pay Pearl $5,000 per month in alimony if they divorced. Pearl felt pressured and insulted, but signed the agreement. After the wedding, Pearl completed the web design and troubleshooting work professionally. However, Darrell refused to pay the remaining $800.

Pearl sued Darrell to recover the unpaid amount. Darrell claimed the Statute of Frauds as a defense. The legal issue is whether Pearl can successfully recover the $800 despite Darrell’s defense.

Issue

The issue is whether Pearl, an Internet Technology representative and web designer, can legally enforce the oral contract she entered into with Darrell, an entrepreneur starting a composting bin business. The agreement called for the payment of $800 for site design and software debugging services. Darrell, however, declines to compensate Pearl for her efforts following a personal argument. He claims that their oral agreement is invalid under the Statute of Frauds and is making this argument (Bretag et al., 2019). It is unclear if this circumstance fits under the Statute of Frauds’ requirements that some contracts be in writing in order to be enforced. The main question is thus whether the Statute of Frauds applies to this oral agreement, and if not, whether Pearl may lawfully enforce the contract and recoup the $800 that Darrell owes her.

Rule of Law

Under the principles of contract law, the Statute of Frauds plays a crucial role in determining the enforceability of certain types of contracts. According to this legal theory, certain types of contracts must be in writing and signed by all parties to be legally binding. Contracts for the sale of commodities valued at more than $500, agreements that cannot be effected within a year, and marriage-related agreements fall under these categories.

It is crucial to remember that not all contracts are covered by the Statute of Frauds. Service agreements, such as the one made between Darrell, an entrepreneur, and Pearl, an IT representative, are often exempt from the Statute of Frauds unless they cannot be performed within a year. The contract, in this instance, covered site software debugging services and design, both of which could be completed in less than a month, well within the allotted one-year timeframe. Given the nature of the contract in question and the timing of its execution, one can doubt the applicability of the Statute of Frauds.

Application of the Rule of Law to Facts

Here, Pearl and Darrell entered into an oral contract for web design and software troubleshooting services, not the sale of goods. Although the overall contract price of $800 exceeded the $500 cap, services are usually not included in this cap. Additionally, the benefits had to be delivered in a month, well inside the allotted year.

The one-year rule is thus invalid. After the service agreement was created, a marriage proposal and subsequent prenuptial agreement were made, although marriage was not a requirement of the service agreement. Therefore, it cannot be claimed that the contract was created with marriage in mind.

Conclusion

Therefore, considering the specifics of this case, including the nature of the contract and the sequence of events, it appears that the Statute of Frauds likely does not apply. The deal between Pearl and Darrell was for services only; no commodities were involved, and it was supposed to be finished in no more than six months. The contract was a special deal established before any marriage proposals, not in consideration of marriage.

Darrell owes Pearl $800 for her site design and software debugging services. Thus, Pearl should be able to enforce the verbal agreement and enforce the contract to recover the money. It is important to remember that this approach is predicated on a knowledge of contract law and the Statute of Frauds in general. The specific legislation in the region where the case is being tried, as well as the court’s interpretation and discretion, would have a significant impact on the case’s actual conclusion. Legal outcomes can differ depending on a wide range of variables, including but not limited to the evidence presented, the reliability of the witnesses, and the specifics of local legislation.

Reference

Bretag, T., Harper, R., Burton, M., Ellis, C., Newton, P., van Haeringen, K., & Rozenberg, P. (2019). . Assessment & Evaluation in Higher Education, 44(5), 676-691. Web.

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IvyPanda. (2026, January 23). Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis. https://ivypanda.com/essays/enforcing-an-oral-service-contract-a-statute-of-frauds-case-analysis/

Work Cited

"Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis." IvyPanda, 23 Jan. 2026, ivypanda.com/essays/enforcing-an-oral-service-contract-a-statute-of-frauds-case-analysis/.

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IvyPanda. (2026) 'Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis'. 23 January.

References

IvyPanda. 2026. "Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis." January 23, 2026. https://ivypanda.com/essays/enforcing-an-oral-service-contract-a-statute-of-frauds-case-analysis/.

1. IvyPanda. "Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis." January 23, 2026. https://ivypanda.com/essays/enforcing-an-oral-service-contract-a-statute-of-frauds-case-analysis/.


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IvyPanda. "Enforcing an Oral Service Contract: A Statute of Frauds Case Analysis." January 23, 2026. https://ivypanda.com/essays/enforcing-an-oral-service-contract-a-statute-of-frauds-case-analysis/.

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