Georgia Senate Bill SB242

Georgia 2023-2024 Regular Session

• Introduced: 2/23/23
• Refer: 2/27/23

Caption

Statute of Frauds; agreements with a value in excess of $10,000.00 shall be in writing; provide

Impact

The bill directly impacts the enforceability of oral agreements, particularly in business and real estate transactions where large sums are often involved. By reinforcing the requirement for written contracts in such cases, SB242 is expected to provide more robust protection for parties entering into substantial agreements. This amendment emphasizes the necessity of documentation, potentially reducing litigation related to unenforceable verbal contracts.

Summary

Senate Bill 242 aims to amend the statute of frauds within Georgia's legal framework by stipulating that any agreements valued over $10,000 must be documented in writing. The proposed change is significant as it clarifies the conditions under which a contract becomes legally binding, particularly for high-value transactions. This approach seeks to enhance legal certainty and reduce disputes over verbal agreements in significant financial dealings.

Contention

While the bill has practical implications for improving contract enforcement, it may invoke concerns among stakeholders who favor less formal requirements for smaller agreements. Critics argue that imposing strict writing requirements could complicate transactions and create barriers for individuals and small businesses that may not always have the resources for legal documentation. Proponents, on the other hand, advocate that this measure is critical for preventing fraud and misunderstandings in significant transactions.