ExpertHard1 markMultiple Choice
CPA · Question 52 · 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 a service that can be completed within 6 months.
B.
A contract for the sale of goods for $300.
C.
A contract to act as a surety (guarantee another's debt).
D.
A contract for the sale of a patent.
How to approach this question
MY LEGS: Marriage, Year (>1), Land, Executor, Goods (>$500), Surety.
Full Answer
C.A contract to act as a surety (guarantee another's debt).✓ Correct
C
The Statute of Frauds requires contracts for suretyship (guaranteeing the debt of another) to be in writing to be enforceable. Sale of goods must be >$500.
Common mistakes
Thinking all sales of goods require writing (only >$500).
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