ExpertHard1 markMultiple Choice
CPA · Question 14 · Area 2: Business Law
Under the Statute of Frauds, which of the following oral contracts is legally enforceable?
Under the Statute of Frauds, which of the following oral contracts is legally enforceable?
Answer options:
A.
A contract for the sale of goods worth 0.
B.
A contract to serve as a guarantor for a friend's debt.
C.
A contract to build a custom deck that will take 14 months to complete, but could theoretically be completed in 11 months.
D.
A contract for the sale of land.
How to approach this question
Check MY LEGS (Marriage, Year, Land, Executor, Goods >0, Surety). For the 'Year' prong, ask: Is it IMPOSSIBLE to finish in a year? If no, oral is okay.
Full Answer
C.A contract to build a custom deck that will take 14 months to complete, but could theoretically be completed in 11 months.✓ Correct
A contract to build a custom deck that will take 14 months to complete, but could theoretically be completed in 11 months.
The Statute of Frauds requires a writing for contracts that cannot be performed within one year. If performance is theoretically possible within a year, the oral contract is enforceable.
Common mistakes
Confusing 'likely to take >1 year' with 'impossible to perform within 1 year'.
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