What Contracts are Required to Be in Writing?
Most contracts can be either written or oral, but some agreements must be in writing in order to be binding. The following types of contracts need to be executed in writing: • real estate sales; • agreements to pay someone else’s debts; • contracts that take longer than one year to complete; • real estate leases for longer than one year; • contracts for over a certain amount of money (depending on the state); • contracts that will last longer than the life of the party performing the contract; and, • a transfer of property at the death of the party performing the contract. An English law from 1677, called the “Statute of Frauds,” provides the basis for current written contract requirements. The goal of written contract rules is to avoid fraud by requiring written proof of the underlying agreement. This legal goal makes sense as a practical objective as well. Although other types of contracts may be oral, it is advisable to “get it in writing” to insure both parties understand their obl
