Idaho Real Estate Practice Exam

What legal statute requires a lease for over one year to be in writing to be enforceable?

1. Statute of Limitations

2. Statute of Frauds

3. Uniform Commercial Code

4. Real Property Act

The correct answer is: Statute of Frauds

The correct choice is significant because the Statute of Frauds is a legal doctrine that requires certain types of contracts to be executed in writing to be enforceable in a court of law. Specifically, it pertains to leases, where agreements for a duration exceeding one year must be documented in writing. This requirement aims to prevent fraud and misunderstandings by ensuring there is clear evidence of the agreement's terms. Most commonly, leases that extend beyond a year can have complex arrangements and significant implications for the parties involved, so having a written record minimizes the risk of disputes over the terms and conditions of the lease. This legal framework encourages proper documentation and supports the integrity of real estate transactions. The other options reference different legal concepts: the Statute of Limitations pertains to the time frame within which legal actions can be initiated; the Uniform Commercial Code governs commercial transactions; and the Real Property Act relates specifically to real property laws but does not encapsulate the requirements of written contracts for leases. Understanding these distinctions helps clarify why the Statute of Frauds is the relevant legal statute in this context.