What is the main purpose of the statute of frauds?

The main purpose of the statute of frauds is to ensure that certain types of contracts are in writing to be enforceable. This legal principle originated to prevent potential misunderstandings and fraudulent claims in contract law by requiring written documentation for significant agreements, such as those involving the sale of real estate, contracts that cannot be performed within one year, and agreements for the sale of goods exceeding a specific monetary threshold.

By having a written record, both parties have clear evidence of the terms and conditions agreed upon, which helps to minimize disputes that might arise from oral agreements that may lack clarity or reliability. The statute of frauds serves the essential function of enhancing the reliability of contracts, thereby promoting trust and stability in business dealings.