Does the Statute of Frauds apply to internet software development oral agreements in New York?

I made an oral agreement with a friend to develop software (to be completed in under a year). The contract amount for him was $15K+, of which I paid him 50% upfront (and got nothing for it). I did not pay him the remaining 50% due to failure to perform and started over with someone else. He in turn is threatening to sue me for the remaining 50%. What right does he have to do this in New York considering there is no written agreement and I don't want whatever he claims to have developed?
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Answers (1)

Kaiser Wahab

Kaiser Wahab

Contributor Level 6
The statute of frauds has been determined to apply in situations such as yours, where there is a high likelihood of emails between the parties that could rise to a written contract. Given that this is software development, in my experience, many of the communications (not only with regard to the software) with regard to the deal terms are exchanged by email. NY courts have used such emails as the basis for finding an enforceable contract. Also, even if the court determines there is no enforceable contract, they may allow recovery of monies on the basis of quantum meruit (i.e., recovery based on the value of the services or products being enjoyed by the other party). Also, this is not technically a "contract" for sale of goods but rather development services and that can be potentially used to sidestep any statute of frauds defense.

That being said, it may be that this person has no chance of succeeding because of lack of performance or other issues. However, I would be leery of assuming that the statute of frauds is a foolproof defense to a potential lawsuit.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.
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