What must contracts that are not to be performed within one year be?

Contracts that are not to be performed within one year must be in written form and signed due to the Statute of Frauds. This legal principle dictates that certain types of contracts, including those that cannot be fulfilled within a year, need to be documented in writing to be enforceable. The rationale is to provide clear evidence of the agreement and its terms, which helps prevent misunderstandings and fraudulent claims. The requirement for a signature further ensures that the parties involved have agreed to the terms, providing a measure of legal protection.

Oral agreements can be challenging to enforce, especially when disputes arise regarding the specifics of the contract. Therefore, having a written document is crucial for contracts that extend beyond a year, creating a formal record of the obligations and expectations of each party involved. This formalization is essential in legal settings and enhances the reliability of the agreement.