In this module, you are introduced into the concept of legally enforceable agreements, also called contracts. Contracts are the most important legal concept that companies need to know about. This module will present all the elements of a valid contract: agreement, consideration, capacity, legality and satisfaction of the law on fraud. At the end of this module, you can identify a valid and enforceable contract and determine the reasons for the inapplicability of an agreement. It is in this lesson that we will discuss the status of fraud. This is the rule that requires certain contracts to be written and allows certain contracts to be verbally and enforceable. We will therefore know what types of contracts need to be written in order to be applicable. Okay, so I`ll say it again, I`ll say a million times, valid contracts must have agreements, counterparties, contractual capacity, legality and sometimes have to be written. And in this lesson, we will talk about when there are situations where contracts have to be concluded in writing. As a general rule, all contracts are perfectly valid and enforceable. So when I say, “I`m selling you my bike for $100, and you say `I`m accepting`, we`ve signed a contract, and it`s enforceable. There is now a legal doctrine called the Fraud Act. It`s an old word.
Come from the common law of England. The law of fraud is only a rule that requires certain contracts to be written in order to be enforceable. And there`s a great way for all law students to learn an acronym to tell us what types of contracts need to be written to be enforceable under the law of fraud. And the acronym is “MYLEGS,” that is, M-Y-L-E-G-S, each of these letters represents a word that helps us remember what types of contracts need to be written. Thus the M in “MYLEGS” means first of all marriage. Well, some parts of the acronym MYLEGS are more common than others and this is one that is not super common. But marriage promises must be written to be enforceable. Well, that`s not it, it`s a promise to marry someone, which means things like a wedding. It`s a promising reflection of marriage, we say, “Well, we`re getting ready to get married, let`s make this marital agreement.” This kind of thing has to be written. The Y in “MYLEGS” is written for the year. In particular, a contract that cannot be executed within one year must be written.