Business deals often start with a handshake or an oral promise. While oral agreements can be enforceable in some situations, Oregon law requires certain contracts to be in writing to be valid. This rule comes from what’s known as the Statute of Frauds—a legal safeguard designed to prevent misunderstandings and disputes over certain transactions.
If you’re a business owner, property developer, or professional entering into important deals, knowing when the law requires a written contract can help protect your interests and reduce costly disputes.
What Is the Statute of Frauds?
The Statute of Frauds is an Oregon law (ORS § 41.580) that says certain agreements are not enforceable unless they are in writing and signed by the party being charged. This requirement exists to reduce the risk of fraud, clarify terms, and create a clear record of important obligations.
Contracts That Must Be in Writing in Oregon
Under Oregon law, the following types of contracts generally must be in writing.
- Real Estate Transactions
- Any contract for the sale of land, an interest in land, or a lease longer than one year.
- Long-Term Contracts
- Agreements that cannot, by their terms, be performed within one year.
- Promises to Pay Another’s Debt
- A guarantee or surety agreement, where one party promises to be responsible for another’s obligation.
- Marriage-Related Agreements
- Contracts made upon consideration of marriage (such as prenuptial agreements).
- Estate-Related Promises
- Promises by an executor or administrator to personally pay debts of an estate.
Generally, if an agreement falls into one of these categories and is not properly documented, a court may refuse to enforce it. Take caution that there are a variety of exceptions and nuances to the general rule.
Why Written Contracts Protect Your Business
Even when a written contract is not technically required, putting agreements in writing helps:
- Avoid disputes about what was promised.
- Provide clarity if leadership changes hands.
- Strengthen enforceability in court.
For businesses and property owners, the cost of preparing a solid contract is often far less than the cost of litigation over an unclear oral agreement.
Takeaway for Oregon Businesses and Professionals
Not all oral agreements are unenforceable, but relying on them is risky—especially in high-value transactions. If your deal involves real estate or long-term obligations, Oregon law likely requires a written contract.
Having a clear, enforceable agreement in writing is one of the simplest ways to safeguard your business and personal investments.
How Chenoweth Law Group Can Help
At Chenoweth Law Group LLC, we help business owners, developers, and professionals in Oregon and Washington draft, review, and enforce contracts that stand up to scrutiny. Our contract attorneys understand how to protect your interests, minimize risk, and prevent disputes before they escalate.
If you’re entering into a major deal, don’t rely on a handshake—contact our team to ensure your contract is enforceable and strategically designed.
