STUDY UNIT SEVENTEEN CONTRACTS Flashcards
With regard to an agreement for the sale of real estate, the statute of frauds
A. Does not apply if the value of the real estate is less than $500.
B. Requires that the purchase price be fair and adequate in relation to the value of the real estate.
C. Requires that the entire agreement be in a single writing.
D. Does not require that the agreement be signed by all parties.
D. Does not require that the agreement be signed by all parties.
Answer (D) is correct.
An agreement for the sale of real property is within the statute of frauds. To be enforceable it must satisfy requirements of the statute: a written memorandum must name the parties, describe the subject matter, state the essential terms, recite the consideration, and be signed by the party to be charged. Other parties need not sign it.
(17.7.83)
Jones, CPA, entered into a signed contract with Foster Corp. to perform accounting and review services. If Jones repudiates the contract prior to the date performance is due to begin, which of the following is false?
A. Foster can obtain a judgment ordering Jones to perform.
B. Foster can obtain a judgment for the monetary damages it incurred as a result of the repudiation.
C. Foster could successfully maintain an action for breach of contract after the date performance was due to begin.
D. Foster could successfully maintain an action for breach of contract prior to the date performance is due to begin.
A. Foster can obtain a judgment ordering Jones to perform.
Answer (A) is correct.
Repudiation before the time of performance is an anticipatory breach. Anticipatory breach occurs when a party indicates that (s)he will not perform. This indication may be express or implied by express statement, selling property, going out of business, or not meeting an installment due. The injured party may treat the contract as breached and immediately file suit, or as continuing and hold the breaching party accountable when performance is due. But a contract for personal services is not specifically enforced. Damages might be inadequate when the subject matter is unique. But forced performance may not be satisfactory and could be construed as involuntary servitude.
(17.10.122)
