Bankruptcy Section
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What is an example of an unenforceable contract?
There are instances where there may be a contract, but it is unenforceable because of another reason. In Texas, a defense to the formation of a contract is the Statute of Frauds. This rule requires that contracts involving the sale of real estate, contracts concerning the sale of goods worth more than $500, contracts that cannot be performed within one (1) year, contracts to pay off someone else’s debt, and marriage contracts must be in writing. For example, Boy may offer to sell his house to Girl for $475 and a bag of chips and Girl accepts by giving Boy $475 and a bag of chips. This contract is unenforceable because it involves the sale of real estate and must be in writing to be a valid enforceable contract.
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