Which type of business contract must be in writing according to the statute of frauds?

The statute of frauds outlines specific types of contracts that must be in writing to be enforceable, primarily to prevent misunderstandings and fraud. One of the key categories is contracts pertaining to the sale of an interest in land. This includes various types of agreements related to real estate, such as sales, leases, and easements. The requirement for these contracts to be in writing is rooted in the significant value and complexity associated with real estate transactions, which can lead to disputes if not properly documented.

Contracts that fall under the other options, such as the sale of goods under a specific monetary threshold or contracts that can be completed within a year, do not necessarily need to be in writing. In particular, the Uniform Commercial Code (UCC) allows for oral contracts for the sale of goods as long as they are under $500, and certain agreements might not require written documentation if they can be fulfilled within a year. Moreover, general oral agreements between businesses, while often enforceable, typically do not meet the scrutiny of the statute of frauds unless they involve specific types of situations.

Thus, the stipulation regarding contracts related to land ensures necessary legal protections are in place, making it essential for these agreements to be documented in writing.