R5 M2 - Contracts: Part II Flashcards
A minor can effectively disaffirm a contract up until the time of the 18th birthday and shortly thereafter.
Please list the Statue of Frauds: Six Contracts Requiring a Writing?
Note: Contracts for the sale of goods for $ 500 or more,
Service can be contracted orally regardless of price so long as the work is done within a year.
Which of the following oral agreements is enforceable without a writing under the statute of frauds?
A. An agreement to lease a house for $499 per month for two years. B. An agreement to employ a person for $450 a week for 18 months. C. An agreement to employ a person for life. D. An agreement to give a couple $450 if they agree to marry within six months.
Choice “C” is correct. The statute of frauds provides that certain contracts are not enforceable unless they are evidenced by a writing signed by the party sought to be held liable. Among such contracts are contracts that, by their terms, cannot be performed within a year. A contract to employ a person for life is not such a contract, since the person might not live a year. Thus, such a contract is enforceable even absent a writing.
Choice “A” is incorrect. Contracts for the sale of goods for $500 or more are within the statute of frauds and are unenforceable absent a sufficient writing. However, the $500 threshold is relevant only in contracts for the sale of goods. A lease of more than one year is within the statute both because it is a contract that by its terms cannot be performed within a year and a contract for an interest in land. Therefore, such a contract is not enforceable absent a sufficient writing.
Choice “B” is incorrect. A contract to provide services for 18 months by its terms cannot be performed within a year. Thus, it is unenforceable under the statute of frauds absent a sufficient writing. The fact that the rate of pay is $450 is irrelevant—the $500 threshold is relevant only with respect to a contract for the sale of goods.
Choice “D” is incorrect. Although this contract can be performed within a year, a contract the consideration for which is marriage is within the statute of frauds and is unenforceable absent a sufficient writing.
Which of the following contracts must be evidenced by a signed writing reflecting the material terms of the agreement to be enforceable under the statute of frauds?
A. A contract to employ a person for life. B. A contract to employ a person for two years. C. A contract to employ a person to sell goods for more than $500. D. A contract to employ a person for more than $500.
Choice “B” is correct. A contract to employ a person for two years is not enforceable under the statute of frauds unless the material terms of the contract are evidenced by a writing signed by the party sought to be held liable. This is because a contract which by its terms cannot be performed within a year is within the statute of frauds.
Choice “A” is incorrect. As indicated above, a contract which by its terms cannot be performed within a year is within the statute of frauds and is unenforceable absent a sufficient writing. However, a contract to employ a person for life does not fall within this provision because the employee can die within a year.
Choice “C” is incorrect. A contract to employ a person to sell goods for more than $500 is a contract for employment. Such contracts need not be evidenced by a writing to be enforceable.
Choice “D” is incorrect. A contract to employ a person need not be evidenced by a writing merely because the consideration is more than $500—the statute of frauds $500 threshold applies only to contracts for the sale of goods.
