MBE Rules · Contracts
Statute of Frauds — one-year rule
The rule
A contract incapable of full performance within one year of its making must be in writing. If there is ANY possibility of performance within one year — however unlikely — the SoF does NOT apply. Computed from date of making, not commencement.
In plain English
If a contract can't be completed within a year, it needs to be written down to be enforceable. If there's any chance it could be done in a year, it doesn't need to be written.
Worked example
The defendant agrees to paint a mural on the buyer's building, expecting it to take 18 months. If the mural could somehow be finished in 11 months, the contract doesn't need to be in writing.
Memory hook
One Year Rule: Write or Wane. If a deal can't wrap in a year, it needs pen and paper — unless there's a chance it can.
The trap
Students think: If performance is unlikely within a year, it must be written. Wrong, because mere possibility avoids the SoF. The actual test is any possibility of performance within a year.
How examiners test it
The MBE loves: contract for long-term services. Question: SoF? Trap: students assume unlikely performance within a year means writing is needed — but if any chance exists, SoF doesn't apply.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.