Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund's offices for as long as Hedge Fund needs them. This contract may be enforceable by
A) none of the choices.
B) Hedge Fund only.
C) any interested third party, such as a Hedge Fund shareholder.
D) either Guardian Security or Hedge Fund.

Question

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund's offices for as long as Hedge Fund needs them. This contract may be enforceable by
A) ​none of the choices.
B) ​Hedge Fund only.
C) ​any interested third party, such as a Hedge Fund shareholder.
D) ​either Guardian Security or Hedge Fund.

Quizplus · Accepted Answer

The oral contract is enforceable by either party because it is a service contract that does not fall under the Statute of Frauds, which requires certain contracts to be in writing. Since the duration is indefinite ("as long as Hedge Fund needs them"), it is not required to be in writing.