What is the purpose of the "statute of frauds"?

The purpose of the "statute of frauds" is to ensure that certain types of contracts are documented in writing to be enforceable in a court of law. This legal principle is designed to prevent misunderstandings and fraudulent claims regarding certain agreements, providing a clear record of the terms agreed upon by the parties involved. Typically, the statute of frauds applies to contracts involving significant transactions, such as real estate sales, contracts that cannot be performed within one year, and agreements for the sale of goods above a certain value, among others. By requiring these contracts to be in writing, the statute enhances reliability and certainty in contractual relationships.