Statute of Frauds - That law which requires that certain contracts be in
writing and signed by the parties in order to be legally enforceable.

A contract is an enforceable promise to do or not to do a certain thing.  To
be a binding promise, several essential elements are required, easily
remembered by remembering COCA COLA.

COnsideration - anything of value that influences a person to enter into a
contract, including a promise, an act, or payment of money.  Although
standard, earnest money is not required.

CApacity - adults (over 18) with mental capacity, as well as properly formed
corporations and partnerships.

COnsent - mutual consent is evidenced by a definite offer that is properly
accepted - said to be a 'meeting of the minds.' A valid offer may be revoked
any time prior to notice of acceptance or it may be  rejected by the
offeree. Acceptance must be communicated to the offeror in the exact terms
in which it was made (the 'mirror rule') - any change, no matter how slight,
results in a counteroffer (which extinguishes the original offer).

LAwful Object - The object of the contract must be lawful when the contract
is made  and possible when the contract is to be performed.

Contracts are classified as Express or Implied; Unilateral or Bilateral;
Executory or Executed; Valid, Void, or Voidable; Some contracts may be
Unenforceable under the Statute of Frauds. With a few exceptions, real
estate related contracts must be in writing to be enforcable. A verbal
contract to purchase real estate may be Valid, and Unenforceable.

A verbal contract to purchase real estate is not fraudulent, it is
Unenforceable.

Real estate contracts not required to be in writing to be
enforceable...agreements between brokers to spit commissions...leases for
more than one year.

Notice I did not say that it is a a good idea to have verbal contracts. I
have merely attempted to clarify terminology (that's what happens when one
teaches real estate principles for over 20 years :-)

Saul

Saul Klein
President, InternetCrusade