Colibri Real Estate 30-Hour Alabama Post License Practice Exam

What does the Statute of Frauds specify is necessary for certain contracts?

1. They must be verbal

2. They must be in writing

3. They must be notarized

4. They must be signed by witnesses

The correct answer is: They must be in writing

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing in order to be enforceable. This requirement is established to prevent fraudulent claims and misunderstandings that may arise from verbal agreements. Specifically, the Statute of Frauds typically applies to contracts involving the sale of real estate, long-term agreements, and contracts that cannot be performed within one year. By mandating that these contracts be documented in writing, the law ensures there is clear evidence of the terms and conditions agreed upon by the parties involved, thus providing protection and clarity in legal transactions. In contrast, verbal agreements, notarization, and the signing of witnesses are not sufficient to meet the criteria established by the Statute of Frauds for the specified contracts. These other options may hold significance in different contexts, but they do not fulfill the fundamental requirement that certain contracts must be written to have legal standing under the Statute of Frauds.