Which of the following is true regarding noncompliance with the statute of frauds?
A) The basic legal effect under the statute of frauds and the UCC differs.
B) The statute of frauds applies to executed and executory contracts.
C) A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may recover in restitution the benefits he conferred on the other party.
D) The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

Question

Quizplus · Accepted Answer

The correct answer is C because if a contract is found to be unenforceable due to noncompliance with the statute of frauds, a party who has relied on the contract and conferred benefits based on that reliance may be able to recover the value of those benefits in restitution. This principle is aimed at preventing unjust enrichment of one party at the expense of the other.

Which of the Following Is True Regarding Noncompliance with the Statute