Kelley borrows $3,000 from Paul and orally agrees to repay him in three annual installments. Most courts would hold:
A) the oral contract is unenforceable because it cannot be performed within one year.
B) Article 2 of the UCC controls this loan.
C) the oral contract is enforceable only through the doctrine of promissory estoppel.
D) the oral contract is enforceable because Paul fully performed his obligation under the contract.

Question

Quizplus · Accepted Answer

The oral contract is enforceable because Paul fully performed his obligation by providing the loan, and the statute of frauds does not apply to this type of agreement.

Kelley Borrows $3,000 from Paul and Orally Agrees to Repay