Statue of Frauds is a phrase that refers to the legal requirement that specific types of contracts be established in written form. These types of contracts cannot be created and agreed to in an oral or verbal form. They must be written, signed, and often notarized.
There are a number of different types of contracts that are specified under the Statue of Frauds. For instance, contracts that address marriage, including prenuptial agreements, legal separation agreements, divorce agreements, and child custody agreements, must be created in written form. Agreements that endure for more than one year must possess written contracts. When land or real estate is transferred, a written contract must be established. In addition, written contracts are necessary when an agreement involves the sale of products totaling more than $500.
If the participating parties fail to create a written contract for these types of agreements, and for other agreements specified by the Statute of Frauds, the agreement will not be considered legally binding.