Which set of laws helps prevent parties from becoming involved in fraudulently formed contracts?

• A. Risk
• B. COD
• C. Implied warranty of merchantability
• D. Statutes of fraud

Answer: (D)

The main idea here is that certain contracts must be in writing to be enforceable, a principle known as the statutes of frauds. Requiring written evidence helps prevent fraud by ensuring there is reliable documentation of what was agreed to, so someone can’t easily claim a contract exists or misstate its terms later. This protection applies to contracts like real estate transactions, promises to pay the debt of another, and contracts that can’t be completed within one year, and, for goods, contracts over a specified amount under the UCC. Among the options, only the statutes of fraud address how contracts are formed and enforced, reducing opportunities for fraudulent or misleading contract claims. The other choices don’t address contract formation: risk is a broad concept, COD is a payment term, and the implied warranty of merchantability concerns product quality, not how or whether contracts are legally formed.