Quiz 15: Mistakes, Fraud, and Voluntary Consent

Business

a). The One-Year Rule - One Year Term: In order for an oral contract to be enforceable, it must be possible to complete the contract within one year after the date of the contract. So long as Benson exercises the right to begin performance immediately, the contract will be possible to complete within the one-year requirement. Hence, the oral contract was possible to fulfill within the one-year rule and therefore enforceable under the Statute of Frauds. b). The One-Year Rule - Nine Month Term: In order for an oral contract to be enforceable, it must be possible to complete the contract within one year after the date of the contract. Benson may not begin employment until September 1, and nine months later the contract would expire on May 31. That time frame falls outside of the requirement to perform the contract within one year from the day after the contract is entered into. The contract is entered into on May 5, and the contract will be impossible to complete within the one-year requirement. Hence, the oral contract was not possible to fulfill within the one-year rule and therefore unenforceable under the Statute of Frauds. c). The One-Year Rule - Two Year Term: In order for an oral contract to be enforceable, it must be possible to complete the contract within one year after the date of the contract. So long as it is possible for Benson to complete and submit the research covered under the oral contract within the one-year time limit, the contract will be enforceable. The Two-year deadline served as a guideline and not a contract term. Hence, the oral contract was possible to fulfill within the one-year rule and therefore enforceable under the Statute of Frauds.

Court would not likely to decide that O's employment contract falls within the Statute of Fraud because for a contract to fall within the Statute of Fraud must have to fall within the category of those contracts which required to be in writing. They are as follows: a. Contracts that cannot be performed within one year, b. Contracts involving interests in land, c. Promises made in consideration of marriage, d. contracts for the sale of goods priced at $500 or more under the Uniform Commercial Code, and e. Collateral or secondary contracts such as promises to answer for the debt or duty of another. O's employment contract does not fall under any of the above mentioned contracts and hence, it is not upon the court to decide this matter under Statute of fraud.

Collateral Promises: In order for Mallory's oral promise to be enforceable under the Statute of Frauds it must be in writing. The hardware store has an enforceable contract in writing with her brother and cannot enforce her oral promise to pay unless that promise is in writing. Mallory will receive nothing in consideration of her promise, so it is unenforceable unless it is in writing.

Related Quizzes