The statute of frauds is the general name for each state’s statute (law) that requires certain contracts to be in writing—or to have a written memorandum that records the essential elements of the agreement—in order to be enforceable. Statutes of fraud are an exception to the general rule that verbal or oral contracts are just as enforceable as written contracts. Statutes of fraud are designed to prevent fraud and perjury (lying under oath) in transactions that are especially susceptible to fraud.

Statutes of fraud vary from state to state, but generally include (1) contracts for the sale or lease of real estate (land); (2) contracts that cannot be performed within one year from the date of the contract’s formation—such as a two-year employment contract; (3) loan agreements in excess of a certain amount; (4) contracts involving engagement promises (return of engagement rings), marriage (prenuptial agreements), or cohabitation (support, responsibilities) and post-cohabitation support (palimony); (5) contracts for the sale of goods above a certain amount (often $500); (6) promises to pay an estate’s debt from the personal funds of the executor; and (7) contracts in which one person agrees to pay the debt of another person.

In Tennessee, the statute of frauds is codified under Tennessee Code Annotated (T.C.A.) § 29-2-101 et seq. This law requires certain types of contracts to be in writing to be enforceable. Specifically, it includes contracts for the sale or lease of real estate, contracts that cannot be completed within one year, loan agreements for substantial amounts, prenuptial agreements and certain agreements related to marriage or cohabitation, contracts for the sale of goods priced at $500 or more, promises to pay an estate's debts from personal funds, and agreements where one party assumes the debt of another. These requirements are designed to prevent fraudulent claims and misunderstandings by ensuring that there is clear and tangible evidence of the agreement's terms and the parties' intentions.