Are Oral Contracts Enforceable in Indiana?
In Indiana, the general rule is that both oral and written contracts may be enforced; provided, however, certain types of contracts must be in writing to be enforceable. Known as the Statute of Frauds, Indiana law prohibits bringing an action to enforce certain categories of contracts unless the promise, contract, or agreement on which the action is based, or a memorandum or note describing the promise, contract, or agreement on which the action is based, is in writing and signed by the party against whom the action is brought or by the party’s authorized agent. Those actions include: (1) an action charging any person, upon any special promise, to answer for the debt, default, or miscarriage of another; (2) an action charging any person upon any agreement or promise made in consideration of marriage; (3) an action involving any contract for the sale of land; (4) an action involving any agreement that is not to be performed within one (1) year from the making of the agreement; and (5) an action involving an agreement, promise, contract, or warranty of cure concerning medical care or treatment; provided, this requirement does not affect the right to sue for malpractice of negligence.
While it is important to note that Indiana courts have developed some limited doctrines to get around the Statute of Frauds in limited circumstances, it is often best practice to memorialize any agreement by or among parties in a signed writing, and it is particularly important to memorialize any agreement subject to the Statute of Frauds in a writing signed by all parties. That said, in Indiana, the general rule is that oral contracts are enforceable unless otherwise provided.