Business Law

Question 1

Statute of Frauds

Answer 1

States that there are 6 contracts that must be in writing to be enforceable:

1. Marriage is consideration
2. Contracts that cannot be performed within 1 year
3. Contracts involving land or real property
4. Contracts to pay estate debts
5. Contracts involving sale of goods >$500
6. Promises to pay another’s debt/Suretyship

Question 2

Exceptions to the statute of frauds, contracts that do not have to be in writing

Answer 2

Specifically manufactured goods
Contracts that parties have admitted to in court
Contracts that have been performed
Merchant contracts that have been confirmed in writing by the buyer, and seller did not object within 10 days

Question 3

3 requirements to attach a security interest

Answer 3

1. Agreement: either by record or creditor actually takes possession of collateral
2. Value (in secured collateral)
3. Rights: debtor must own the collateral