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<b><i>Decision of Note</b></i> Statute of Frauds Bars Enforcement Of Executive Deals
The Court of Appeals of Tennessee, at Nashville, has decided that the Statute of Frauds barred record executives from enforcing unsigned two- and three-year contracts for them to operate a proposed but canceled country music label. Shedd v. Gaylord Entertainment Co., M2002-00258-COA-R3-CV. The statute voided the contracts because they couldn't be performed within one year, the court noted.
The plaintiffs contended that the contracts nevertheless were enforceable based on partial performance. This included one of the plaintiffs attending staff meetings at the defendant's offices as well as going to artist showcases prior to the proposed effective date of the contract. Another plaintiff attended label development meetings and called upon potential buyers.
But the appeals court noted 'preparing to perform under a contract is not quite the same as actually performing. ' a plaintiff's partial performance has been deemed sufficient to bring a multi-year employment contract out of the Statute of Frauds only where that performance has been substantial and where it began after the effective date of the contract.'
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