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Is an Unwritten Contract Enforceable in Louisiana

Is an Unwritten Contract Enforceable in Louisiana?

Posted on September 22, 2016

By Daryl Gray

Many states have strict rules about the types of contracts that must be in writing to be enforceable. For example, contracts to purchase land must often be in writing. This is known as the “statute of frauds” because it is intended to prevent fraud between the parties to the contract.

Louisiana (as you would imagine) is a little different. However, laws exist in Louisiana that are designed to avoid fraud and to promote certainty.

Several Louisiana statutes work together to achieve these goals.

The most significant law requiring written contracts is Louisiana Civil Code article 1839, which provides that contracts to transfer “immovable property” must generally be in writing. Immovable property includes the following:

  • Vacant land and real estate;
  • Timber and mineral rights;
  • Buildings;
  • Docks and piers; and
  • Shops and warehouses.

Sales of immovable property must generally “be made by authentic act or by act under private signature.” To meet the “authentic act” requirement, the buyer and seller most often sign a contract in the presence of two witnesses and a notary public, all of whom also sign the document to “authenticate” that document.

Additional contracts of note that must be in writing to be enforceable are set forth in Louisiana Civil Code article 1847 and Louisiana Revised Statute 23:731:

  • The “promise to pay the debt of a third person”;
  • The “promise to pay a debt extinguished by prescription”; and
  • Wage assignments.

Louisiana law specifically provides that if the contract is legally required to be in writing, it cannot be proved through other means unless it “has been destroyed, lost, or stolen.” In other words, witness testimony or other evidence cannot establish a contract existed if it is one of the types of contracts that must, by law, be in writing. Again, the legislative intent was to avoid fraud and promote certainty.

The law that applies to contracts can also affect you significantly in litigation. Contract law in Louisiana, including settlements, is complex and warrants an evaluation by an experienced personal attorney. The attorneys at Gray Law Group, LLC can advise you about the laws applicable to written and unwritten contracts. For a free case evaluation, contact our experienced attorneys at (504) 264-5552.