What is the statute of frauds?

The statute of frauds is a legal requirement in California that certain contracts must be in writing in order to be considered legally binding. It is a rule of civil procedure that seeks to protect both parties to a contract by ensuring that a contract is complete, accurate and enforceable. The statute of frauds applies to contracts that involve land, contracts that cannot be completed within one year, contracts involving precious goods or goods in bulk, contracts involving suretyship, and contracts involving the sale of goods for a total value of $500 or more. These contracts must be in writing and signed by the parties in order to be legally binding. When the statute of frauds applies to a contract, any oral agreement cannot be enforced by the courts. If a disagreement arises about the terms of the contract or the performance of the contract, the court will look to the written document as the source of information. The statute of frauds also serves an important function in reducing the potential for fraud. By having contracts in writing, it is easier to identify any fraudulent activity by either party. This helps protect individuals and businesses from unfair and unethical practices.

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What is the statute of frauds?

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