Which of the following oral contracts is enforceable under the Statute of Frauds?

Answer options:

A contract to sell land for $400.

A contract to sell a custom-made computer for $1,000 that cannot be resold in the ordinary course of business.

A contract to guarantee the debt of another.

A contract for services that cannot be performed within one year.

How to approach this question

Recall the exceptions to the Statute of Frauds (SWAP): Specially manufactured goods, Written confirmation, Admitted in court, Performance.

Full Answer

B.A contract to sell a custom-made computer for $1,000 that cannot be resold in the ordinary course of business.✓ Correct

Under UCC §2-201, contracts for the sale of goods >= $500 generally require a writing. However, an exception exists for 'specially manufactured goods' that are not suitable for sale to others in the ordinary course of business.

Common mistakes

Focusing on the $500 threshold and ignoring the 'custom-made' exception.

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