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: Delaware Business Litigation ReportCourt of Chancery Applies Statute of Frauds to LLC Agreement
By Morris James LLP
Brian T. Olson v. O. Andreas Halvrosen, C.A. 1884-VCL (Del Ch. Oct. 22, 2008)
This decision invalidates a provision in an unsigned LLC agreement for violating the statute of frauds. The Delaware LLC Act permits an oral LLC agreement; however, when the promise in that oral agreement cannot be performed within a year, the promise must be in writing. Given the common existence of oral LLC agreements, this decision sounds a word of caution.
Full post as published by Delaware Business Litigation Report on October 22, 2008 (boomark / email).
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