1.

Define Statute of Frauds

 Statute of Frauds is a legal concept which covers the contracts in consideration of marriage,
contracts which cannot be performed within one year, contracts for the sale of an interest in
land, contracts by the executor of a will to pay a debt of the estate with his own money,
contracts for the sale of goods above a certain value, and contracts in which one party
becomes a surety (acts as guarantor) for another party’s debt or other obligation. It applies
only to executory contracts and not to contracts that are totally or partially performed, this
statute requires that certain contracts be put into writing and that they are signed by the
contracting parties to be enforceable. In the case of Asia Production Co. V. Ernani Cruz Paño
with G.R. No. L-51058, the statute of fraud is not applicable, due to the reason that the
agreement was not reduced to writing and payments are made partially.

2. What is the purpose of Statute of Frauds.

 The purpose of Statute of Fraud as mentioned in the case is to forfend fraud and perjury in
the enforcement of obligations depending on their evidence on the unassisted memory of
witnesses by requiring certain contracts and transactions to be evidenced by a writing
signed by the contracting parties to be charged. This statute does not make any contract
void or inexistent; it only makes unenforceable actions for specific performance covered by
it.

3. What are the different kinds of contracts based on their enforceability?

 According to Hector S. De Leon, unenforceable contracts are those that cannot be
enforced in court or sued upon by reason of certain defects provided by law until and
unless they are ratified according to law. He also stated that in the cases of contracts
under Statute of frauds, contracts that are not in the form of writing is valid, but it
cannot be proved and, therefore, it cannot be enforced unless it is ratified.
Article 1403 of the Civil Code states that the following contracts are unenforceable
unless they are ratified:
1. Those entered into the name of another by one without, or acting in excess of,
authority;
2. Those that do not comply with Statute of Frauds; and
3. Those where both parties are incapable of giving.

Reference:

De Leon, H. (2014). The Law on Obligations and Contracts. Manila, Philippines. Rex Bookstore, Inc.

Legal Notes, (2007). Unenforceable Contracts: Article 1403- 1408 of the New Civil Code. Retrieved from
https://legalnotes.wordpress.com/2007/03/02/unenforceable-contracts/#:~:text=Statute%20of
%20Frauds%20defined%20(Article,be%20bound%20by%20the%20contract.&text=Contracts
%20in%20which%20one%20party,party's%20debt%20or%20other%20obligation.