Statute of Frauds

The Statute of Frauds is a law that requires certain types of contracts to be in writing in order to be enforceable. The purpose of the Statute of Frauds is to prevent fraud and perjury by requiring that certain agreements be memorialized in writing. The Statute of Frauds applies to contracts for the sale of land, contracts for the sale of goods worth more than $500, contracts for the performance of services that cannot be completed within one year, and other types of agreements.

If a contract falls within the Statute of Frauds, then the contract must be in writing and signed by the party against whom enforcement is sought. If there is no written contract, then the court will not enforce the agreement even if there is evidence that an agreement was reached. The Statute of Frauds protects businesses and individuals from being taken advantage of by preventing oral agreements from being enforced.