Which of the following is NOT included in the categories of contracts that must be in writing under the Statute of Frauds?

Which of the following is NOT included in the categories of contracts that must be in writing under the Statute of Frauds?

• A. Contracts for sale of goods over $500
• B. Contracts for services performed for one year
• C. Contracts for minor services
• D. Collateral promises

Answer: (C)

The answer highlights that contracts for minor services are not required to be in writing under the Statute of Frauds, which applies only to certain specified categories of contracts. The Statute of Frauds mandates that certain agreements must be documented in writing to be enforceable, aiming to prevent misunderstandings and fraudulent claims. Contracts for the sale of goods exceeding $500, contracts for services that are to be performed over the span of one year, and collateral promises—such as guarantees for another's debt—fall within the Statute of Frauds' requirements, necessitating written documentation to ensure clarity and legal enforceability. In contrast, contracts related to minor services typically do not meet significant thresholds that necessitate a written form, as they are usually less complex and do not present the same risks of misunderstanding or fraudulent claims. Therefore, the categorization of minor services as exempt from this requirement demonstrates an understanding of the intent behind the Statute of Frauds: to ensure that only those agreements that pose a higher risk warrant the additional formality of written contracts. This helps maintain a balance between legal protection and practical business operations.

The answer highlights that contracts for minor services are not required to be in writing under the Statute of Frauds, which applies only to certain specified categories of contracts. The Statute of Frauds mandates that certain agreements must be documented in writing to be enforceable, aiming to prevent misunderstandings and fraudulent claims.

Contracts for the sale of goods exceeding $500, contracts for services that are to be performed over the span of one year, and collateral promises—such as guarantees for another's debt—fall within the Statute of Frauds' requirements, necessitating written documentation to ensure clarity and legal enforceability. In contrast, contracts related to minor services typically do not meet significant thresholds that necessitate a written form, as they are usually less complex and do not present the same risks of misunderstanding or fraudulent claims.

Therefore, the categorization of minor services as exempt from this requirement demonstrates an understanding of the intent behind the Statute of Frauds: to ensure that only those agreements that pose a higher risk warrant the additional formality of written contracts. This helps maintain a balance between legal protection and practical business operations.