Florida General Contractor Practice Exam

Which type of contract is often required to be in writing According to Florida law?

1. Contracts over $1000

2. Oral contracts

3. Contracts under $1000

4. Any contract involving construction work

The correct answer is: Contracts over $1000

In Florida, contracts that exceed a certain monetary threshold, specifically those over $1,000, are typically required to be in writing to be enforceable. This requirement stems from the Statute of Frauds, which was established to prevent fraud and misunderstandings in contractual agreements. The written form provides a clear record of the agreement's terms, which helps to avoid disputes between the parties involved. While oral contracts can still be valid for amounts under this threshold, having a written contract is advisable for clarity and legal standing, especially in construction work, which can involve complex arrangements and details. Contracts under $1,000 may not have the same formal requirements, leading to potential issues if disputes arise. Therefore, requiring contracts over $1,000 to be in writing helps ensure that all parties have a clear understanding and mitigate risks associated with verbal agreements.