PSI Oklahoma Real Estate Practice Test

What determines the enforceability of a contract in the case of a five-year lease?

1. It must be signed by the tenant only

2. A verbal agreement is sufficient

3. It must be in writing to be enforceable

4. The lease must be notarized

The correct answer is: It must be in writing to be enforceable

The enforceability of a contract, particularly in the case of a five-year lease, is determined by the requirement that it must be in writing to be enforceable. This necessity arises from the Statute of Frauds, which is a legal principle that mandates certain contracts, including those that cannot be performed within one year, to be in written form to ensure their enforceability. This requirement helps provide clear evidence of the terms agreed upon and protects both parties involved. A verbal agreement may suffice for many types of contracts, but leases that extend beyond one year must be documented in writing. This written form of a lease protects the interests of both the landlord and tenant by specifying their obligations and rights, which is crucial for preventing disputes. While notarization may add an additional layer of legitimacy to a document, it is not a requirement for the enforceability of most leases. Similarly, a lease signed only by the tenant does not fulfill the requirement for the lease to be enforceable; both parties typically need to sign the written document to bind each to its terms.