Under the Statute of Frauds, which of the following contracts MUST be in writing to be enforceable?

Answer options:

A contract to perform a service that can be completed within 6 months.

A contract for the sale of goods for $300.

A contract to act as a surety (guarantee another's debt).

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

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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Practice the full CPA REG Practice Exam 5

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