Illinois Leasing Agent Practice Exam

What does the statute of frauds require for certain contracts?

1. They must be verbal agreements

2. They must be in writing

3. They require third-party witnesses

4. They must be notarized

The correct answer is: They must be in writing

The statute of frauds mandates that certain types of contracts must be documented in writing to be enforceable. This legal framework is designed to prevent misunderstandings and fraud that could arise from oral agreements, which can be difficult to prove. Specific contracts that are typically required to be written under the statute of frauds include those involving the sale or transfer of real estate, leases that extend beyond one year, and certain agreements to pay someone else's debt. By requiring a written record, the statute also ensures that there is clear evidence of the terms agreed upon, which provides both parties with legal protection. Thus, the necessity for these contracts to be in writing serves a crucial role in safeguarding interests and facilitating fair transactions.