Which requirement must contracts satisfy according to the statute of frauds?

Contracts governed by the statute of frauds must be made in writing and signed by all parties involved. This legal requirement is intended to prevent misunderstandings, fraud, and disputes about the terms of significant agreements, particularly those that deal with matters such as the sale of real estate, agreements that cannot be performed within one year, and certain amounts involving goods. By requiring a written agreement, the statute increases the reliability of the contract's terms and provides a clear, verifiable record of the parties' intentions.

The other options do not align with the fundamental requirement of the statute of frauds. Contracts can certainly be verbal, but such agreements may not be enforceable for specific categories unless they are documented in writing. Additionally, there is no general limit on the monetary amount for contracts to be enforceable under the statute; rather, certain categories of contracts are specified regardless of the dollar amount involved. Finally, while having a witness may enhance the credibility of a contract, it is not a stipulated requirement under the statute of frauds for enforceability.