PSI Oklahoma Real Estate Practice Test

According to the statute of frauds, what is true about a five-year lease?

1. It must be in written form to be enforceable

2. It can be verbal without issues

3. It must be signed by both parties

4. It only needs to be in writing if the rent exceeds a certain amount

The correct answer is: It must be in written form to be enforceable

A five-year lease must be in written form to be enforceable according to the statute of frauds. This legal principle requires certain agreements, including leases that exceed one year, to be in writing in order to be legally binding. The purpose of this requirement is to prevent disputes about the terms and ensure that there is clear evidence of the agreement between the parties involved. Verbal agreements for leases of this duration can lead to misunderstandings and are difficult to prove in court, hence the necessity for written documentation. The other options do not hold because a five-year lease cannot be validly created through verbal contracts alone, irrespective of any monetary thresholds or the signature of both parties. The statute of frauds specifically mandates that lengthy leases must be documented in writing to ensure clarity and enforceability.