According to the statute of frauds, which of the following contracts must be in writing to be enforceable?

The reason why the correct choice—contracts for the sale of $500 or more—must be in writing to be enforceable stems from the principles established by the statute of frauds. This legal doctrine requires certain types of contracts to be documented in writing to prevent fraud and misunderstandings between parties. Specifically, the statute of frauds applies to contracts that involve significant financial commitments, which is why it stipulates that any agreement for the sale of goods valued at $500 or more must be in writing.

By requiring a written form for these higher-value transactions, the statute helps ensure that all parties have a clear and tangible record of the agreement, which can be referenced in disputes or misunderstandings. This safeguard is particularly important in commercial transactions where the amounts involved can be substantial.

In contrast, sales under $500, as stated in the first option, do not fall under the same requirement since they are considered lower-risk transactions. Similarly, contracts that can be completed within a year or those made orally do not need to be in writing according to the statute of frauds. Thus, the necessity for a written contract in larger transactions serves to provide clarity and legal protection for all parties involved.