Dismissal based on unenforceability of claim under the Statute of Frauds

Pursuant to Rule 16 of the Rules of Court, a defendant may move for the dismissal of the case based on that the claim is unenforceable under the Statute of Frauds. The Statute of Frauds is under Article 1403(2) of the Civil Code of the Philippines.

Article 1403. The following contracts are unenforceable, unless they are ratified: xxx

(2) Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases an agreement hereafter made shall be unenforceable by action, unless the same, or some note or memorandum, thereof, be in writing, and subscribed by the party charged, or by his agent; evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents:

(a) An agreement that by its terms is not to be performed within a year from the making thereof;
(b) A special promise to answer for the debt, default, or miscarriage of another;
(c) An agreement made in consideration of marriage, other than a mutual promise to marry;
(d) An agreement for the sale of goods, chattels or things in action, at a price not less than five hundred pesos, unless the buyer accept and receive part of such goods and chattels, or the evidences, or some of them, of such things in action or pay at the time some part of the purchase money; but when a sale is made by auction and entry is made by the auctioneer in his sales book, at the time of the sale, of the amount and kind of property sold, terms of sale, price, names of the purchasers and person on whose account the sale is made, it is a sufficient memorandum;
(e) An agreement for the leasing for a longer period than one year, or for the sale of real property or of an interest therein;
( f ) A representation as to the credit of a third person. xxx
The Statute of Frauds above provided that certain contracts therein enumerated, unless IN WRITING and SUBSCRIBED by the party charged or by his agent, are UNENFORCEABLE and evidence on the agreement cannot be received without the writing or secondary evidence of its contents.

In what cases does the Statute of Frauds apply? The statute of frauds applies only to executory contracts and in actions for their specific performance, not to those which have been totally or partially performed. Performance, which must be proved, takes the contract out of the operation of the principle. (G.R. No. 131277. February 2, 1999)

What is the purpose of the Statute of Frauds? To prevent fraud and perjury in the enforcement of obligations depending for their evidence on the unassisted memory of witnesses by requiring certain contracts and transactions to be in writing. (G.R. No. 85240. July 12, 1991)

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