Introduction

Read the overview below and complete the activities that follow.

Statute of Frauds

The statute of frauds is a law requiring that certain types of contracts be in writing to be enforceable. It is designed to prevent potential deception or fraud from oral contracts. It serves to minimize confusion in court whenever a party claims a contract is breached. Most states merely require that the contract be evidenced by writing and be signed by the party against whom enforcement is being sought. This requirement means the party being sued must have signed a note, memorandum, or another written form that describes with reasonable certainty the terms of the oral agreement.

CONCEPT REVIEW:

The statute of frauds requires certain types of business$-$related contracts to be in writing. The following contracts are required to be evidenced by a signed writing: $(1)$ contracts involving an interest in land; $(2)$ collateral promises to pay another person's debt; $(3)$ contracts that cannot be performed within one year from the date of the agreement; and $(4)$ contracts for the sale of goods of $$500$ or more.