Which Utah contracts must be in a signed writing?
Under § 25-5-4 these agreements are void unless the agreement, or a note or memorandum of it, is in writing signed by the party to be charged: an agreement that by its terms is not to be performed within one year; a promise to answer for the debt, default or miscarriage of another; an agreement made upon consideration of marriage (except mutual promises to marry); an executor's or administrator's special promise to pay the decedent's debts out of his own estate; an agreement authorizing or employing an agent or broker to buy or sell real estate for compensation; and every credit agreement. Except as subsection (2)(e) provides, a debtor or creditor may not maintain an action on a credit agreement unless it is in writing, expresses consideration, sets forth the relevant terms and conditions, and is signed by the party against whom enforcement is sought. Subsection (2)(e) is the exception that matters in practice: a credit agreement is binding and enforceable without any signature by the party to be charged if the debtor was given a written copy of the terms, the agreement provides that any use of the credit offered constitutes acceptance of those terms, and the debtor or someone the debtor authorised then requests funds or otherwise uses the credit. A signed application also counts as a signed agreement where the creditor does not customarily obtain a further signed agreement on granting it.
The trap
'Credit agreement' means an agreement by a financial institution to lend, delay or modify repayment, otherwise extend credit, or make any other financial accommodation, so an oral promise by a bank to forbear, extend or refinance is not actionable; financial advice, consultation or a fiduciary relationship between creditor and debtor does not create a credit agreement unless the writing requirements are met, and each credit agreement must carry a notice that the writing is the final expression of the agreement, though that notice does not have to appear on the promissory note or other evidence of indebtedness tied to the agreement. The definition excludes the usual and customary agreements about deposit accounts or overdrafts, and it reaches only an agreement by a financial institution, which the section defines as a state or federally chartered bank, savings and loan association, savings bank, industrial bank or credit union, or any other institution under the jurisdiction of the commissioner of Financial Institutions, so a private lender's oral promise is outside it altogether. A real-estate commission agreement must also be signed. Under UETA an electronic record and signature can satisfy these requirements. The one-year clause reaches only agreements that 'by its terms' cannot be performed within a year.
9 authorities
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
The following agreements are void unless the agreement, or some note or memorandum of the agreement, is in writing, signed by the party to be charged with the agreement: every agreement that by its terms is not to be performed within one year from the making of the agreement; every promise to answer for the debt, default, or miscarriage of another; every agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry; every special promise made by an executor or administrator to answer in damages for the liabilities, or to pay the debts, of the testator or intestate out of his own estate; every agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation; and every credit agreement.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
Except as provided in Subsection (2)(e) , a debtor or a creditor may not maintain an action on a credit agreement unless the agreement: is in writing; expresses consideration; sets forth the relevant terms and conditions; and is signed by the party against whom enforcement of the agreement would be sought.
- statuteUtah Code § 46-4-201enactment date not established
The words that state the rule
A record or signature may not be denied legal effect or enforceability solely because it is in electronic form. A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation. If a law requires a record to be in writing, an electronic record satisfies the law. If a law requires a signature, an electronic signature satisfies the law.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
"Credit agreement" means an agreement by a financial institution to: lend, delay, or otherwise modify an obligation to repay money, goods, or things in action; otherwise extend credit; or make any other financial accommodation. "Credit agreement" does not include the usual and customary agreements related to deposit accounts or overdrafts or other terms associated with deposit accounts or overdrafts.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
The following actions do not give rise to a claim that a credit agreement is created, unless the agreement satisfies the requirements of Subsection (2)(b) : the rendering of financial advice by a creditor to a debtor; the consultation by a creditor with a debtor; or the creation for any purpose between a creditor and a debtor of fiduciary or other business relationships.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
Each credit agreement shall contain a clearly stated typewritten or printed provision giving notice to the debtor that the written agreement is a final expression of the agreement between the creditor and debtor and the written agreement may not be contradicted by evidence of any alleged oral agreement. The provision does not have to be on the promissory note or other evidence of indebtedness that is tied to the credit agreement.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
A credit agreement is binding and enforceable without any signature by the party to be charged if: the debtor is provided with a written copy of the terms of the agreement; the agreement provides that any use of the credit offered shall constitute acceptance of those terms; and after the debtor receives the agreement, the debtor, or a person authorized by the debtor, requests funds pursuant to the credit agreement or otherwise uses the credit offered.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
For purposes of this act, a signed application constitutes a signed agreement, if the creditor does not customarily obtain an additional signed agreement from the debtor when granting the application.
- statuteUtah Code § 25-5-4enactment date not established
The words that state the rule
"Creditor" means a financial institution which extends credit or extends a financial accommodation under a credit agreement with a debtor. "Debtor" means a person who seeks or obtains credit, or seeks or receives a financial accommodation, under a credit agreement with a financial institution. "Financial institution" means: a state or federally chartered: bank; savings and loan association; savings bank; industrial bank; or credit union; or any other institution under the jurisdiction of the commissioner of Financial Institutions as provided in Title 7, Financial Institutions Act .
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.