Question

1. On January 1, 2018, the Metro Opera House and an opera singer made an oral contract in which Metro will pay the singer $25,000 and the singer will perform on New Year’s Day, 2020. 1. Does Statute of Frauds apply to this agreement? 2. Do the parties have a contract? Why or why not?

2. Andy and Biz Company enter into an oral contract under which Andy agrees to clean the company’s office for two years. 1. Does Statute of Frauds apply to this agreement? 2. Do the parties have a contract? Why or why not?

3. Timber, Inc., offers to sell United Corporation 1,000 wood chairs for $5,500. United Corporation thinks this price is too high so it offers to buy the chairs for $5,000. Timber, Inc., accepts. They both sign a written agreement for the wood valued at $5,000. 1. Does Statute of Frauds apply to this transaction? Why or why not? 2. Does common law or UCC apply? Why? 3. Was there a valid offer, acceptance, and consideration? Explain 4. Do the parties have an enforceable contract? Why or why not?


Performance

June has poor credit. She needs a new refrigerator. Paymore agrees to sell the refrigerator to her despite her poor credit but says she must pay $2,000 for a refrigerator that is only worth $500 and she must pay 18% interest. June accepts and signs the agreement. 1. Does Statute of Frauds apply to this transaction? 2. Does common law or UCC apply? Why? 3. Was there a valid offer, acceptance, and consideration? Explain 4. Do June and Paymore have a contract? Why or why not?


Breach

1. Bill says, “I offer to sell you my scooter for $400.” You reply, “I agree to buy your scooter for $400.” Which of the following is a breach of the contract? Explain why. A. You pay $400 for the scooter. Bill gives you the scooter. B. You pay $400 for the scooter but Bill does not give you the scooter.

Answer 1

1. No, statute of frauds doesn't apply to this arrangement. Contracts that can't be performed within one year must be in writing for them to enforceable. No ,parties don't have a contract due to it being illegitimate.

2. No,statute of frauds doesn't apply to this agreement between Andy and biz since it involves a performance for more than a year and a contract must be in writing for it to be considered legitimate. No, they don't a legitimate contract.

3. Yes ,statute of frauds apply since it is a written contract. UCC apply to almost all sale of goods transactions.

Yes there was a valid offer ( 5,000 and 5500$) ,acceptance and consideration.

Yes ,parties have an enforceable contract since it has all elements and follow the statute of frauds.

Performance

. No, contract isn't enforceable since it involves unreasonable consideration. The seller is taking undue advantage of the buyer's financial position. UCC applies since it is a sale of goods. They don't have a contract due to lack of a valid consideration.

Breach

1. B. You pay $400 for the scooter but bill does not give you the scooter.

Breach of contract is when one of the parties of the contract don't fulfill on their promised performance under the contract.