As a professional, I have written this article on “what contracts need to be in writing under the statute of frauds”.

Contracts are a crucial part of any business arrangement, and they can be formed in a variety of ways. However, some contracts must be in writing to be legally enforceable, as required by the statute of frauds. This article will explain what types of contracts must be in writing to be enforceable under this statute.

The statute of frauds is a legal concept that requires certain agreements to be in writing to be legally enforceable. The purpose of this law is to prevent fraudulent activity and misunderstandings by ensuring that important agreements are clearly documented and agreed upon. The statute varies by state, but most states follow similar guidelines.

The following are the types of contracts that must be in writing under the statute of frauds:

1. Real Estate Contracts

Any agreement that involves real estate must be in writing to be enforceable. This includes contracts to sell, lease, or transfer ownership of properties. The written agreement must include all the essential terms of the deal, such as the purchase price, the property description, and any contingencies or conditions.

2. Contracts That Cannot Be Performed Within One Year

If a contract cannot be performed within one year of its formation, it must be in writing. This is because verbal agreements are harder to prove long after they are made. An example of this type of contract would be a contract for a five-year lease or a contract for a construction project that will take more than a year to complete.

3. Contracts for the Sale of Goods Over $500

Under the Uniform Commercial Code (UCC), contracts for the sale of goods over $500 must be in writing to be enforceable. The UCC applies to all commercial transactions and defines the rules for buying and selling goods. The written agreement must include all the essential terms of the sale, such as the price, quantity, and delivery terms.

4. Contracts for Guarantees or Suretyships

Guarantees or suretyships are agreements where one party agrees to pay the debt of another party if they fail to do so. These contracts must be in writing to be enforceable under the statute of frauds. The written agreement must include all the essential terms, such as the amount of the debt and the terms of repayment.

5. Contracts for Marriage

Prenuptial agreements, or contracts entered into by individuals before marriage, must be in writing to be enforceable. The written agreement must include all the essential terms, such as the division of property in case of a divorce.

In conclusion, the statute of frauds is a critical legal concept that ensures that certain agreements are in writing to be legally enforceable. Understanding the types of contracts that must be in writing is essential for any business or individual entering into a legally binding agreement. By documenting all essential terms of the agreement in writing, you can ensure that your contract is enforceable in court if any disputes arise.