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, Paul Bunyan, Kraken, the Loch Ness Monster, and Bigfoot. Some legends are stories about real people; others are not. Odysseus and Robin Hood for example might have been real but most the stories about them are definitely fiction.