Final answer:
An oral agreement to sell real estate for a commission is typically unenforceable under the Statute of Frauds since such contracts need to be in writing. This legal requirement ensures that agreements can be legally upheld, which is essential for the security of economic transactions.
Step-by-step explanation:
The question asks about the enforceability of an oral agreement to sell real estate for a commission. Under the Statute of Frauds, certain agreements must be in writing to be enforceable. This includes contracts for the sale of real estate or agreements that are not to be performed within a year. As such, an oral agreement to sell real estate for a commission would typically fall under the Statute of Frauds and would be considered unenforceable in a court of law. Oral agreements lack the formal recognition needed to legally compel parties to fulfill their terms.
A legal environment that enforces contracts is essential for economic growth as it provides security for transactions. Without enforceable contracts, the risks of non-payment or non-performance are high, deterring individuals from entering into agreements. Proper legal enforcement helps to ensure that property rights are respected and that the property can be traded or sold, allowing for efficient economic transactions.