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 Colorado, the statute of frauds is codified under Colorado Revised Statutes (C.R.S.) sections 38-10-112 and 4-2-201. These laws require certain types of contracts to be in writing to be enforceable. Specifically, contracts for the sale or lease of real estate, contracts that cannot be completed within one year, and loan agreements for substantial amounts must be in writing. Additionally, Colorado law requires written agreements for the sale of goods priced at $500 or more, in line with the Uniform Commercial Code. Contracts involving marriage, such as prenuptial agreements, also fall under the statute of frauds. The purpose of these requirements is to prevent fraud and perjury by ensuring there is clear evidence of the agreement's terms. While the specific details and thresholds (like the exact amount for loan agreements or goods) may vary, the general categories of contracts that require written documentation are consistent with the statute of frauds principles.