Knowledge Focus: Statute of Frauds
Statute of Frauds
The statute of frauds is a statute which requires certain types of contracts to be in writing in order to be enforceable. Although the statute of frauds vary somewhat from state to state, the following types of contracts must be in writing to be enforceable:
(1)contracts for the sale or lease of, or a mortgage on, real property (e.g., land, fixtures)
(2)contracts that cannot, by their terms, be performed within one year after the date the contract was formed
(3)collateral contracts, such as promises to answer for or guaranty the debt or duty of another person
(4)promises made in consideration of marriage (i.e., prenuptial agreements)
(5)contracts for the sale of goods valued at $500 or more
