California Real Estate Practice Exam

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Which of the following types of contracts need not be in writing?

  1. Sale of land

  2. Leases for one year

  3. Contracts unable to be performed within a year

  4. Sale of goods over $500

The correct answer is: Leases for one year

Leases for one year do not need to be in writing because they fall under the category of contracts for services, which do not have to be in writing according to the statute of frauds. The other options, sale of land, contracts unable to be performed within a year, and sale of goods over $500, all fall under contracts that must be in writing in order to be enforceable. Sale of land and sale of goods over $500 both involve the sale of tangible items, while contracts unable to be performed within a year refer to contracts that cannot be completed within a year from the date they were made. Thus, they all require written documentation in order to avoid any potential misunderstandings or disputes.

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