Fact Pattern 14-1 (Questions 26-27 apply)
Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho’s letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay.

-Refer to Fact Pattern 14-1.The transaction between Macho and NFC falls within the Statute of Frauds'
A)collateral-promise provision.
B)one-year rule.
C)sales-of-goods stipulation.
D)secondary-contracts section.

Question

Fact Pattern 14-1 (Questions 26-27 apply)
Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho’s letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay.

-Refer to Fact Pattern 14-1.The transaction between Macho and NFC falls within the Statute of Frauds'
A)collateral-promise provision.
B)one-year rule.
C)sales-of-goods stipulation.
D)secondary-contracts section.

Quizplus · Accepted Answer

The two-year term of the contract falls under the one-year rule of the Statute of Frauds, which requires that contracts that cannot be performed within one year from the date of formation must be in writing to be enforceable.

Fact Pattern 14-1 (Questions 26-27 Apply)