Which is an exception to the Statute of Frauds rules?

• A. A Leases longer than one year
• B. B Leases of one year or less
• C. C Leases for equal durations
• D. D A license to use intellectual property

Answer: (B)

Contracts that fall under the Statute of Frauds must be in writing, and for real estate leases the key rule is duration: leases longer than one year must be in writing to be enforceable. The important exception is a lease for one year or less, which can be oral and still be enforceable. This is why a short-term lease stands out as the exception—the obligation lasts only a year or less, so the writing requirement doesn’t apply in the same way.

A lease longer than a year isn’t an exception because the writing requirement is precisely to prevent disputes over longer, more burdensome real estate obligations. A license to use intellectual property isn’t the classic exception in this context; its enforceability depends on duration as well, and longer IP licenses would still typically fall under the writing requirement, while shorter ones may not. The well-established carve-out that often appears in questions about the Statute of Frauds is the one-year-or-less lease.