Opinion ID: 2585689
Heading Depth: 2
Heading Rank: 3

Heading: The Credit Agreement Statute of Frauds

Text: Under section 38-10-124, no debtor or creditor may file or maintain an action or a claim relating to a credit agreement involving a principal amount in excess of twenty-five thousand dollars unless the credit agreement is in writing and is signed by the party against whom enforcement is sought. § 38-10-124(2), 10 C.R.S. (2000). The issue before us is whether the credit agreement statute of frauds bars Morris's claims, arising from assurances made to him by the Bank, another lender to the same borrower. In making this determination, we must establish (1) whether the Bank's oral representations upon which Morris's claims are based constitute a credit agreement; and (2) whether the parties in this case qualify as a creditor and a debtor under the statute. [2]