Tendering Money Does Not Necessarily create a contract

Have you ever given money to another thinking that they'll follow through? It happens more often than you think.

Tendering money to someone in hopes of solidifying a contractual matter may not support you in a contract battle. Here's why.

Every state has a statute called: Frauds. It's become known as the Statute of Frauds and it dictates that certain things must be in writing to be enforceable. Such things include the sale of goods over $500, agreements that cannot be performed in one year, martial agreements, the sale of real estate, mortgages, and a few others.

And what you also have to remember is that even if you have an oral agreement (an agreement that was not deduced to writing), it may not be enforceable if the opposing party uses the Statute of Frauds as a defense against your claims.

Therefore, it's important that if you are entering a deal that is of considerable value, take a moment to pause and think whether tendering money at a particular juncture is the right thing to do without having a fully executed (i.e. signed) agreement from all parties involved.

This can save you time, money, and a headache later.

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