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Download article as a PDF. Construction contracts do not necessarily have to be in writing. All states in the U.S. have a law â generally known as a statute of frauds â that requires certain types of contracts to be in writing in order to be a legally enforceable agreement. As the name suggests, the statute is designed to prevent fraudulent claims, especially in the case of large contracts.
In legal lingo, a law requiring a contract to be in writing is known as a statute of frauds. The UCC, too, takes into account that commercial agreements are often unwritten and generally does not require contracts to be in writing. In fact, the UCC requires written contracts in only a few situations, such as: certain contracts for the sale of goods under UCC Article 2.