Nevada’s laws on rights and transactions relating to property includes a statute of frauds section which requires certain types of contracts be in writing in order to be enforceable. These requirements describe situations in which agreements must be in writing, and by extension, when agreements not in writing are void.
Under NRS 111.220, the following agreements are void if they are not in writing:
- Those that cannot be performed in one year (the clock begins ticking when the contract is made).
- Those involving promises to take on the responsibility for debts of another.
- Those involving promises for marriage, when coupled with consideration. (Mutual promises are exempt.)
- Those that involve loaning money or providing credit for $100,000 or more in principal amount, when they are made by parties who are in the business of providing credit or loans.
- Those that involve promises to pay $1,000 or more in fees for loans or credit extensions for another person.
It is important to note that if these types of agreements are not in writing, they may still be enforceable if there is written evidence of consideration. Certain exceptions may exist for each of these situations.
According to the American Bar Association, statutes of frauds exist in many states. Because of their requirements that agreements be in writing, these laws can have a substantial impact on business litigation issues that involve contractual obligations. When compared with the general list provided by the ABA, Nevada’s statute of frauds section aligns generally with those established in other areas of the country.