Legends are stories in oral tradition. They are usually very old, to prove them. Legends are often passed on by word-of-mouth. They are very similar to myths, but myths try to explain what happens in the world.
Examples of legends are Ali Baba, the Fountain of Youth, Kraken, and the Loch Ness Monster. Bigfoot is also a largely mentioned legend in mountain regions. Some legends are stories about real people; others are not. Robin Hood for example might have been real but most the stories about him are definitely fiction.