What is the statute of frauds?

The statute of frauds is a legal doctrine that mandates that certain types of contracts must be in writing in order to be enforceable in a court of law. This requirement exists to prevent misunderstandings, fraud, and disputes regarding the terms of agreements that are made verbally. The contracts typically covered by the statute of frauds include those involving real estate, contracts that cannot be performed within one year, agreements to pay someone else's debt, and contracts for the sale of goods exceeding a certain monetary threshold.

This doctrine serves as a safeguard, ensuring that there is a clear and tangible record of the agreements that are deemed significant enough to warrant written documentation. While not all contracts require writing to be valid, those that fall under the statute of frauds lose enforceability if they are not documented accordingly.

The other options do not accurately capture the essence and function of the statute of frauds. It does not require all contracts to be notarized, as notarization is a separate process meant to verify the authenticity of signatures but is not required for all contracts. It also does not regulate or prohibit verbal agreements altogether; rather, it specifies certain contracts for which written documentation is mandatory. Additionally, while employment contracts may be governed by a variety of legal frameworks, the statute