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The statute of frauds plays a key role in business agreements

Florida businesses need to be aware of various laws that protect them. Since fraud is so rampant, knowing key parts of the law such as the statute of frauds is a fundamental aspect of operating a business and being shielded.

What is the statute of frauds?

Under the statute of frauds, some contracts must be in written form. Generally, this is used in the following cases:

  • When land is being sold
  • When property is exchanged and its value is at least $500
  • If a contract’s duration is for a minimum of one year

The law ensures there is a legal agreement. It is designed to avoid unpredictability while making sure that those who have agreed on a contract will take it seriously and do their best to abide by it.

For the statute of frauds to be valid, it must be signed by both parties. If there was a mistake made by either party when it was signed and it alters the agreement, it will be invalid. Should one party or the other decide to reject the agreement, there is a time-frame in which it must be done and it needs to be in writing.

People can easily become confused about the statute of frauds. This is even true for experienced business people. Commercial litigation could be necessary to hold those who violated this statute accountable.

Businesses and individuals should be cognizant of the statute of frauds

When people enter into an agreement, they might not understand how important it is to have a written contract. Failure to do so can cause myriad issues if the other party does not fulfill their agreed upon role. This can be costly in time and money. If used correctly, the statute of frauds can help prevent these problems.