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What is the Statute of Frauds?

Most states, including North Carolina, have a “Statute of Frauds”, which requires that certain contracts absolutely must be in writing. For example, a contract for the sale of goods for the price of $500 or more is not enforceable unless the contract for the sale is in writing and signed by the party against whom enforcement is sought. N.C.G.S. §25-2-201. There are exceptions for this particular statute including specially manufactured goods or where payment has been made and accepted.

Other contracts controlled by the Statute of Frauds are contracts that cannot be performed within one year; a guaranty to pay the debt of another; an agreement to pay a debt discharged in bankruptcy; a commercial loan by a banking institution in excess of $50,000; and any transaction involving real property.

Construction Contracts 

This information applies to All Counties in North Carolina.


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