Leasing License Practice Exam

What does the Statute of Frauds require?

1. Contracts to be verbal

2. All contracts to be in writing

3. Certain types of contracts to be in writing and signed

4. Contracts to have a notarization

The correct answer is: Certain types of contracts to be in writing and signed

The Statute of Frauds is a legal principle that requires specific types of contracts to be in writing in order to be enforceable. This requirement is particularly important for preventing fraudulent claims and misunderstandings regarding contractual obligations. The types of contracts typically covered under the Statute of Frauds include those related to the sale of real estate, contracts that cannot be performed within one year, promises to pay someone else's debt, and contracts for the sale of goods over a certain value, among others. By mandating that these contracts be in writing and signed by the relevant parties, the Statute of Frauds helps ensure that there is clear evidence of the agreement, which can be vital in legal disputes. This written requirement protects both parties by providing a tangible reference to the terms agreed upon, thereby enhancing the integrity of contractual relationships. The other options suggest broader or different interpretations of the requirements, such as the notion that all contracts must be in writing or that contracts need to be verbal. However, such interpretations do not accurately reflect the intention of the Statute of Frauds, which specifically targets certain types of contracts for this written requirement. Additionally, the mention of notarization is not a standard requirement under the Statute of Frauds; while some documents may