Florida’s Statute of Frauds: When Do Contracts Have to Be in Writing?

At Perez Mayoral, P.A., a Florida-based business litigation law firm, we frequently help clients understand when contracts must be in writing to be enforceable. Florida’s statute of frauds is a common issue in breach of contract disputes, and failing to meet its requirements can result in an otherwise legitimate agreement being thrown out. If you have questions about whether your contract complies with Florida law, call or email our Miami, FL small business lawyer.

The statute of frauds is a centuries-old doctrine designed to prevent fraud by requiring certain contracts to be in writing and signed. In Florida, this requirement is codified in Fla. Stat. § 725.01. Failure to comply with bar enforcement, no matter how compelling the evidence of an oral agreement. Understanding these requirements is critical to avoiding unenforceable deals.

Contracts That Must Be In Writing

Fla. Stat. § 725.01 identifies several categories of contracts that must be in writing and signed by the party to be charged:

1. Guarantees to pay another’s debt or to answer for the debt of another
2. Agreements made upon consideration of marriage, such as prenuptial contracts
3. Contracts for the sale of land or any interest in land, including leases longer than one year
4. Agreements not to be performed within one year from the date of making
5. Promises by healthcare providers to guarantee a specific result, such as a cure or outcome, must be in writing under Florida law. This does not apply to typical service agreements or payment contracts.

Additional requirements apply to promises to pay estate debts out of personal funds and certain financial commitments, including credit agreements involving more than $25,000. See also Fla. Stat. § 687.0304.

Additionally, sales of goods priced at $500 or more require a written contract under the Florida UCC (Fla. Stat. § 672.201) to be enforceable.

For more information about acts of breach of contract, common contract breach defenses, or need help with other business related matters, we are available to talk.

Possibility Of Performance Rule

Florida courts apply the “possibility of performance” rule to determine whether an oral agreement must comply with the statute of frauds. If the agreement could possibly be performed within one year, regardless of how improbable or unlikely performance within that period might be, the statute of frauds does not apply. This rule hinges on the theoretical possibility, not the likelihood, of completion within one year.

For example, in Browning v. Poirier, 165 So. 3d 663 (Fla. 5th DCA 2015), the court enforced an oral agreement to share lottery winnings over several years because it was theoretically possible to perform within one year. Similarly, in New Dirt, Inc. v. Harrison, 200 So. 3d 263 (Fla. 1st DCA 2016), an oral commission agreement spanning multiple years was upheld because completion within one year was not impossible.

Consequences Of Non-Compliance

If a contract falls under the statute of frauds and there is no writing signed by the party to be charged, the agreement is generally unenforceable. However, in the context of real estate contracts, courts may enforce an oral contract under an exception for partial performance to grant specific performance (equitable relief), though this does not apply to monetary damages or most other contract types. Reliance or verbal assurances alone are insufficient.

In Walsh v. Abate, 333 So. 3d 976 (Fla. 4th DCA 2022), the buyer’s lawsuit over a $3.4 million real estate deal was dismissed because there was no signed written contract. Text messages and emails exchanged between the parties were insufficient to satisfy the statute of frauds.

A breach of contract lawyer will often see cases dismissed outright when parties fail to comply with this basic but critical rule.

Tips For Compliance

• Put it in writing: For any agreement involving real estate, guaranties, long-term services, or promises to pay someone else’s debt, ensure all essential terms are documented and signed.
• Use valid signatures: Under Florida’s Electronic Signature Act (Fla. Stat. § 668.50), electronic signatures are valid. Secure e-signature platforms are acceptable.
• Avoid oral modifications: If your written agreement contains a clause stating that changes must be in writing, follow it. Oral modifications may not be enforceable.
• Do not rely on texts or emails: For transactions that fall under the statute of frauds, informal communications may lack required signatures or fail to reflect all essential terms.

Understanding Florida’s statute of frauds, and taking simple steps to comply, can prevent costly litigation and protect your rights.

Contact Us For A Consultation

If you need help reviewing a contract, enforcing an agreement, or defending against a breach of contract claim, Perez Mayoral, P.A. can help. We represent clients throughout Florida in breach of contract and commercial litigation matters. Call or email us to schedule a consultation.