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Current through October 23, 2012
A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one year of its making.
(Apr. 9, 1997, D.C. Law 11-240, § 2, 44 DCR 1087.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
This section provides that the statute of frauds does not apply to contracts for the sale of securities, reversing prior law which had a special statute of frauds in Section 8-319 (1978). With the increasing use of electronic means of communication, the statute of frauds is unsuited to the realities of the securities business. For securities transactions, whatever benefits a statute of frauds may play in filtering out fraudulent claims are outweighed by the obstacles it places in the development of modern commercial practices in the securities business.
Definitional Cross References
"Action". Section 1-201(1).
"Contract". Section 1-201(11).
"Writing". Section 1-201(46).
Prior Codifications
1981 Ed., § 28:8-113.
Legislative History of Laws
For legislative history of D.C. Law 11-240, see Historical and Statutory Notes following § 28:8-101.
