Is a verbal and email agreement to license a product legally binding?

Full question:

When 2 parties agree on a proposal to license a product verbally and through email writings is that legally binding?

  • Category: Licenses
  • Date:
  • State: Illinois

Answer:

The statute of frauds is a law in every state that requires certain agreements to be in writing to be enforceable. This includes contracts involving real property, leases longer than one year, and some types of contracts. The purpose of this law is to prevent false claims regarding agreements that were never made.

In Illinois, the statute of frauds states that a services contract that cannot be completed within one year must be in writing and signed by the party being charged (see 810 ILCS 5/2-201). However, in the case of Cloud Corporation v. Hasbro, Inc., the Court of Appeals for the Seventh Circuit ruled that an email sender's name counts as a signature, satisfying the statute's requirements.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

When two people verbally agree to do something, they create a verbal contract. This type of contract is generally legally binding, provided it meets the necessary elements of a contract, such as offer, acceptance, and consideration. However, certain agreements may still need to be in writing to be enforceable under the statute of frauds, depending on the state and the nature of the agreement.