What is the correct answer to: The statute of frauds requires that:

The correct answer is Real estate contracts must be in writing to be enforceable. The Statute of Frauds, as adopted in every U.S. state (derived from England's original Act for Prevention of Frauds and Perjuries, 1677), specifically requires that contracts for the sale or transfer of interests in real property must be in writing and signed by the party to be charged (the party against whom enforcement is sought) to be legally enforceable. This means that even if both parties genuinely agreed orally to a real estate transaction, neither party can compel the other to perform unless the agreement is documented in writing. This writing requirement applies to purchase agreements, options to purchase, lease agreements exceeding one year, and any other contract conveying an interest in real property.

What background knowledge is needed for this Contracts question?

England's original Statute of Frauds was enacted in 1677 under King Charles II, primarily to combat the rampant perjury and fraud that plagued land transactions in an era when oral testimony was easily fabricated and land was the primary form of wealth. The statute required that contracts for the sale of land, leases exceeding three years, and certain other agreements be evidenced in writing to be enforceable. American colonies and later states adopted their own versions, and today all 50 states have a Statute of Frauds that includes real property contracts within its scope, though the specific provisions vary by state. The doctrine has been refined over centuries through the equitable doctrine of part performance, which allows courts to enforce oral real estate contracts in limited circumstances when one party has substantially performed (such as taking possession and making improvements) in reliance on the oral agreement.

What is a good way to remember the answer to this Contracts question?

Remember 'FRAUD needs a PEN' — the Statute of FRAUDS requires that real estate contracts be in writing (you need a PEN to write them). Alternatively, use the mnemonic 'MY LEGS' for the six categories traditionally covered by the Statute of Frauds: Marriage, Year (contracts lasting more than one year), Land (real property), Executor (estate promises), Guaranty (debt promises), and Sales (goods over $500 under UCC). For real estate exams, the 'L' for Land is your anchor — any time land is being transferred, the Statute of Frauds demands it be in writing. Remember that for real estate contracts to satisfy the statute of frauds, they must be WRITTEN and include all the elements of WRITE

What exam tip applies to this Contracts question?

On the exam, the Statute of Frauds answer is almost always 'must be in writing' — this is the core rule, and the exam tests whether you know this fundamental requirement. Eliminate any answer that mentions notarization, court filing, or one-sided signing requirements, as these are all common distractors that confuse the Statute of Frauds with other legal requirements. Remember that the statute makes oral real estate contracts unenforceable, not illegal — the parties aren't punished for making an oral agreement, they simply cannot enforce it in court.

How does this Contracts concept apply in real world practice?

Tom and Linda shake hands and verbally agree that Tom will sell his vacation cabin to Linda for $150,000, with closing in 60 days. Linda begins making plans to renovate the cabin and tells her friends about her new purchase. Before anything is signed, Tom receives a higher offer from another buyer and decides to sell to them instead. When Linda attempts to sue Tom to enforce their oral agreement, the court dismisses her case because the Statute of Frauds requires real estate contracts to be in writing — their handshake deal, no matter how sincere, is legally unenforceable. Had they signed even a simple written purchase agreement specifying the parties, property, price, and terms, Linda would have had full legal recourse.

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The statute of frauds requires that:

Correct Answer

B) Real estate contracts must be in writing to be enforceable

The statute of frauds requires certain contracts, including those for the sale of real property, to be in writing to be enforceable in court. This protects parties from fraudulent claims.

Answer Options

All contracts must be notarized

Real estate contracts must be in writing to be enforceable

Only the buyer must sign the contract

Contracts must be filed with the court

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Specific Performance

Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.

Statute of Frauds

The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.

Time Is of the Essence

A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.

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