Statute of Frauds

In one sentence

A law requiring certain contracts to be in writing to be enforceable in court.

Plain English

The statute of frauds is an old rule that says some contracts must be written down or a court won't enforce them. This applies to big deals like selling land, promises to pay someone else's debt, or contracts that take more than a year to complete. The rule exists to prevent fraud—it's harder to lie about what you promised if it's in writing. Different states have slightly different rules about which contracts need writing.

Ad slot

Example

You verbally agree to sell your house to a neighbor, but nothing is written down. Later, you change your mind and refuse to sell. The neighbor can't force you to sell because real estate sales must be in writing under the statute of frauds.

Used in a sentence

The statute of frauds prevented enforcement of the oral contract because the agreement to sell real property was never documented in writing.

Related terms

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.