What does the statute of frauds require?

The statute of frauds mandates that certain types of contracts must be in writing to be legally enforceable. This requirement is established to prevent misunderstandings or fraudulent claims that can arise from verbal agreements. The statute specifically applies to contracts involving significant matters, such as the sale of real estate, contracts that cannot be performed within one year, and certain transactions involving goods or services above a specific monetary threshold.

By ensuring that these important agreements are documented in writing, the statute of frauds aims to provide clarity and protect all parties involved in the transaction, making it easier to prove the terms of the contract if disputes arise. This legal safeguard helps to maintain order in transactions that could otherwise be subject to manipulation or misinterpretation through mere verbal communication.