Colibri Real Estate 30-Hour Alabama Post License Practice Exam

Which documents require compliance with the Statute of Frauds to be enforceable?

1. Verbal agreements

2. Written agreements

3. Informal contracts

4. Unregistered documents

The correct answer is: Written agreements

The requirement for compliance with the Statute of Frauds pertains specifically to certain types of written agreements to ensure their enforceability in a court of law. The Statute of Frauds specifies that specific contracts, such as those concerning the sale of real estate, must be in writing and signed by the parties involved to be legally binding. This is to prevent fraudulent claims and misunderstandings that can arise from verbal agreements or informal contracts. Written agreements provide a clear and tangible record of the terms and conditions agreed upon by the parties, which is crucial in legal contexts. The Statute of Frauds generally covers contracts related to real estate sales, leases longer than a year, contracts that cannot be performed within one year, and other specific agreements. Therefore, without being in writing, such contracts would be unenforceable, affirming the necessity of compliance with the Statute of Frauds. Other options like verbal agreements, informal contracts, and unregistered documents do not meet the requirements set by the Statute of Frauds for enforceability. These types of agreements are generally not recognized in a legal context without the written form.