Final answer:
An oral contract for the sale or lease of real property is not illegal, but it is generally unenforceable due to the Statute of Frauds, which requires such contracts to be in writing.
Step-by-step explanation:
When it comes to real estate transactions, not all agreements can be conducted orally. The question asks, 'Is an ORAL contract for the sale or lease of real property illegal?' The correct answer is: False. However, it's important to clarify that while an oral contract isn't necessarily illegal, it is generally unenforceable due to the Statute of Frauds. The Statute of Frauds requires certain contracts to be in writing to be enforceable, including those for the sale or lease of real property that exceeds a term of one year.
An oral contract for the sale or lease of real property that does not meet the requirements set by the Statute of Frauds will not hold up in court. Therefore, while they are not illegal per se, oral contracts for such significant transactions are impractical and pose the risk of not being legally upheld. To ensure that such contracts are enforceable, they must be in writing and include all the necessary elements as prescribed by law.