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 Utah, the statute of frauds is codified in Utah Code Annotated §§ 25-5-1 to 25-5-4. This legal principle requires certain types of contracts to be in writing to be enforceable. The types of contracts typically covered by the statute of frauds in Utah include: (1) agreements for the sale or lease of real property; (2) contracts that cannot be completed within one year from the making thereof; (3) loan agreements for amounts that the legislature has determined require a writing; (4) prenuptial agreements and other contracts in contemplation of marriage; (5) contracts for the sale of goods priced at $500 or more, as governed by the Uniform Commercial Code; (6) promises to answer for the debt, default, or miscarriage of another, also known as suretyship; and (7) agreements related to the distribution of an estate that obligate a person to pay an estate debt from their personal funds. These requirements are designed to prevent misunderstandings and fraud by ensuring that there is clear and tangible evidence of the agreement and its terms.