ExpertHard1 markMultiple Choice
CPA · Question 30 · Area II: Business Law
Under the Statute of Frauds, which of the following contracts must be in writing to be enforceable?
Under the Statute of Frauds, which of the following contracts must be in writing to be enforceable?
Answer options:
A.
A contract to perform services for $600.
B.
A contract for the sale of goods for $400.
C.
A contract to act as a surety for another's debt.
D.
A contract that can be performed within 6 months.
How to approach this question
Recall MY LEGS (Marriage, Year, Land, Executor, Goods >$500, Surety).
Full Answer
C.A contract to act as a surety for another's debt.✓ Correct
C
The Statute of Frauds requires certain contracts to be in writing: (1) Marriage, (2) Year (cannot be performed within 1 year), (3) Land, (4) Executor, (5) Goods >= $500, (6) Surety. Option C is a suretyship contract. Option A is services (no $ limit, only time limit). Option B is goods under $500.
Common mistakes
Thinking the $500 limit applies to services (it applies to goods only).
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