As a general rule, contracts are oral or written, but written contracts have generally been preferred in common legal systems; [46] In 1677, England passed the Fraud Act which influenced similar fraud laws[47] in the United States and other countries such as Australia. [48] In general, the Uniform Commercial Code, as adopted in the United States, requires a written contract for physical sales of products over $500, and real estate contracts must be in writing. If the contract is not written by law, an oral contract is valid and therefore legally binding. [49] In the meantime, the UK has replaced the original Fraud Act, but written contracts are still needed for various circumstances like the country (by the Prosperity Law of 1925). Otherwise, it could likely have legal consequences, including, but not limited to, damages. Trade agreements assume that the parties intend to be legally bound, unless the parties explicitly state otherwise, as in a heads of agreement document. For example, in Rose & Frank Co v. JR Crompton & Bros Ltd, an agreement between two commercial parties was not obtained because an “honour clause” in the document says, “This is not a commercial or legal agreement, but only a declaration of the parties` intention.” An oral contract can also be described as a parol or oral contract, “verbally” more “spoken” than “in words”, an established use in British English in terms of contracts and agreements[50] and, usually, although something “casual” in American English is pejorative. .