Which of the following does the one-year rule state?
A) Every contract in writing is subject to yearly renewal.
B) The terms of a written contract can be modified within a year of its formation.
C) A contract that cannot be performed on its own terms within a year should be in writing.
D) Valid contracts cannot be rescinded by either party until a year after their formation.

Question

Quizplus · Accepted Answer

The one-year rule is a principle under the Statute of Frauds which states that contracts that cannot be performed within one year of their making must be in writing to be enforceable. This rule is designed to prevent misunderstandings and fraud over the terms of the agreement that cannot be completed within a year.

Which of the Following Does the One-Year Rule State