What Type of Contract Must Be in Writing

What Type of Contract Must Be in Writing

Author: BeastAdmin

When entering into a contract, it is important to understand the type of contract that must be in writing to ensure its validity and enforceability. While some contracts can be formed orally, others require written documentation to be legally binding. In this article, we will outline the types of contracts that must be in writing.

1. Contracts involving real estate

Any contract involving the sale, purchase, or lease of real estate must be in writing to be legally binding. This includes contracts for the sale of a home, commercial property, or vacant land. The written contract must outline the terms of the agreement, including the price, payment terms, and any contingencies.

2. Contracts that cannot be performed within one year

If a contract cannot be performed within one year from the date it was made, it must be in writing. For example, if you enter into a contract to provide services for a client that will take longer than a year to complete, the contract must be in writing.

3. Contracts for the sale of goods over $500

Contracts for the sale of goods over $500 must be in writing to be enforceable. This includes contracts for the sale of products, equipment, or inventory. The written contract must outline the terms of the agreement, including the price, payment terms, and delivery schedule.

4. Contracts for the sale of securities

Any contract involving the sale of securities, such as stocks or bonds, must be in writing to be legally binding. The written agreement must outline the terms of the sale, including the price, quantity, and any special conditions.

5. Contracts for loans or credit

Contracts for loans or credit, including mortgages and promissory notes, must be in writing to be enforceable. The written contract must outline the terms of the loan, including the interest rate, repayment terms, and any penalties for late payments.

In conclusion, it is important to understand the types of contracts that must be in writing to ensure their validity and enforceability. Knowing when a written contract is required can help you avoid legal disputes and protect your interests. If you are unsure whether a contract needs to be in writing, it is always best to consult with an attorney.

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