Definition of Statute Of Fraud

The contracts need to dine in a written form which is signed by the parties which are bound by the contract. The purpose to get a contract in writing and get signed by the parties is for the prevention of frauds. That is the reason this is known as the statute of frauds.

There are few contracts which need to e in a written form and where the statute is applied are:

• Contracts of sale/purchase of lands.
• Contracts which cannot be done in a year.
• A promise to pay a debt.

Statute of frauds is the way to prevent the frauds made by the parties. This need that if the contract is being made, then parties must sign the contract, a contract must be written. These are the essential elements of an agreement.