Georgia Real Estate Salesperson Practice Exam

What is the primary purpose of the statute of frauds?

1. To validate verbal agreements

2. To require certain contracts to be in writing

3. To expedite contract disputes in court

4. To regulate contract terms for parties involved

The correct answer is: To require certain contracts to be in writing

The primary purpose of the statute of frauds is to require certain contracts to be in writing. This legal principle is designed to prevent misunderstandings and fraudulent claims about agreements that are significant in nature, such as those involving real estate transactions. By mandating that specific types of agreements—like those for the sale of land, leases longer than one year, or contracts that cannot be performed within one year—be documented in writing, the statute helps to ensure that there is clear, tangible evidence of the terms agreed upon by the parties involved. This written requirement serves to protect both parties in a transaction by establishing a definitive record that can be referred to in the event of a dispute, thereby enhancing clarity and accountability in contractual relationships.