What Types of Contracts Are Required to Be in Writing under the Statute of Frauds

As a professional, it is clear that the phrase “statute of frauds” may not be familiar to most individuals. However, it is an essential legal concept that one must understand when entering into a contract.

The statute of frauds refers to a legal concept that requires certain types of contracts to be in writing for them to be enforceable in a court of law. This legal doctrine exists to protect individuals from fraudulent or deceitful claims made by others.

Below are some of the types of contracts that are required to be in writing under the statute of frauds.

1. Contracts for the sale of goods valued at $500 or more.

Any contract for the sale of goods valued at $500 or more must be in writing for it to be legally binding. This includes contracts for the sale of personal property such as cars, appliances, or electronics.

2. Real estate contracts.

Any contract for the sale of land or any interest in land must be in writing to be enforceable. A written contract for a lease that is longer than one year is also subject to the statute of frauds.

3. Contracts that cannot be performed within one year.

If the terms of a contract cannot be performed within a year of the date it was made, then it must be in writing. This includes contracts for employment that exceed one year.

4. Contracts for the sale of securities.

Any contract for the sale of stocks, bonds, or other securities must be in writing to be legally binding.

5. Contracts for the payment of debts.

Any agreement to pay the debt of another person must be in writing under the statute of frauds.

It is important to note that these contracts do not require to be formal and fully executed by all parties involved. An email exchange or a series of text messages may also constitute a written contract as long as it contains the essential terms of the agreement.

In conclusion, the statute of frauds is a legal doctrine that outlines the types of contracts that must be in writing to be enforceable. These include contracts for the sale of goods valued at $500 or more, real estate contracts, contracts that cannot be performed within one year, contracts for the sale of securities, and contracts for the payment of debts. It is essential to ensure that any contract that falls under these categories is in writing to avoid any legal disputes in the future.