Question

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600, each from a different Discount City store location and downloads $300 worth of digital music from iTunes. To be enforceable, which contracts must be in writing?

A. The digital music, the MP3 player, and the speakers

B. The MP3 player and the speakers only

C. The MP3 player only

D. The speakers only

For which of the following contracts would an oral agreement be enforceable?

A. A contract that allows me to park my boat on another person's land for the next five years.

B. A contract between me and US Bank under which I agree to pay off my friend’s credit card debt in full within one year.

C. A contract between a band and a record label under which the band is obligated to release ten albums with the record label.

D. A contract between a vegetable purveyor and a restaurant under which the restaurant is purchasing $1500 worth of various vegetables.

Answer 1

1. Answer: D; The speakers only

Explanation:

As per statute of frauds, the contract for the sale of goods priced at $500 or more should be in writing. In the given contracts, only the contract to buy a pair of stereo speakers is a goods contract priced at more than $500. Hence only the contract for the speakers should be in writing to be enforceable.

2. Answer: C. A contract between a band and a record label under which the band is obligated to release ten albums with the record label.

Explanation:

As per statute of frauds, certain contracts need to be in writing to be enforceable. They are contracts involving interests in land, contracts that cannot by their terms to be performed within one year from the date of formation, collateral contracts like promises to answer for the debt or duty of another, promises made in consideration of marriage and the contracts for the sale of goods priced at $500 or more. Option A involves interest in land, option B involves collateral contracts to pay the debt of another and option D involves contract for the sale of goods priced at more than $500. Hence these options are not enforceable through oral agreements. Option C involves contract for service as the band is required to release ten albums with the record label. Hence this does not come under statute of frauds and is enforceable with oral agreement.