Statute of Frauds Defined:
• The statute of frauds specifically refers to the requirements that certain kinds of contracts or binding agreements be memorialized in a formal writing, with sufficient content to evidence the affirmation of the contractual agreement. The statute of frauds is a legal code, which governs and regulates the legality issues associated with contractual agreements between individuals or entities.
• In a traditional sense, the statute of frauds requires the delivery of an affirmed contractual agreement in the following circumstances:
1. Contracts in consideration of a union, such as marriage. This provision also covers prenuptial agreements.
2. All contracts which cannot be performed within one year of affirmation. Contracts of indefinite duration; however, do not fall under the statute of frauds regardless of how long the performance takes.
3. Contracts for the transfer of an interest in real property or land require the delivery of an affirmed contractual agreement. This specific category within the Statute of Frauds applies not only to a contract to sell the land, but also to any other contract in which an interest in land or the tangible land itself.
4. Contracts administered by an executor of a will to pay an obligation or a debt of the estate with its own assets.
5. All contracts used to establish an agreement for the sale of goods involving a purchase price of $500 or more are regulated by the Statute of Frauds.
6. Contracts where one party becomes a surety (individual or entity who acts as the guarantor) for another party’s debt or other obligation.