Do We Really Have to Write It Down? Which Contracts Must Be in Writing Explained
Have you ever wondered which types of contracts must be in writing to make sure you get the benefit of your bargain? All of the U.S. states have some form of what is known as the “Statute of Frauds.” Under this law, or laws, some contracts must be in writing to be enforceable.
The Statute of Frauds originated in England in the 1600s. As its name suggests, the law was designed to prevent people from defrauding each other by claiming the benefit of nonexistent contracts. From this standpoint, the Statute of Frauds serves a very important public purpose.
The vast majority of contracts can be made orally, with no written component. There are certain types of contracts, however, which must be in writing to be enforceable. The most common examples of contracts that must always be in writing are land contracts, contracts for goods valued at $500 or more and contracts to be responsible for the debt of another person.
However, if you’re starting a small business, it’s important to remember that the law only requires the bare minimum. Although not all contracts are required to be put in writing, Satori Law Group recommends putting all agreements in writing in order to protect your interests and prevent future lawsuits.
What type of writing is required?
The statute of frauds usually does not require the contract to be highly technical or formal. Instead, any writing will do if it includes the names of the parties, the contract’s subject matter, and the basic conditions of the agreement. Also, keep in mind that a person cannot be held responsible for a written contract if he or she did not sign it.
From vendor agreements to purchase agreements, from leases to independent contractor agreements, contracts are a part of everyday business life. It is important to make sure your contracts are valid, enforceable and protecting you like they should.
Because the Statute of Frauds varies from state to state, you should obtain advice about your contracts from an experienced lawyer licensed in the state in which you do business. One of the services we provide is a comprehensive contract review, and this review can help you get paid more often, more easily and bring in more money for your business.
Contact us today to learn more about how we can help your business.

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