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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.
The High Court has unanimously decided that verbal terms made before a written contract generally will not override that written contract. Once a written contract has been executed, the parties are bound, and the courts will hold the parties to their written obligations.