Which of the following statements is true of the Statute of Frauds?
A) An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party.
B) Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded.
C) If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract.
D) Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing.

Question

Quizplus · Accepted Answer

The Statute of Frauds requires certain types of contracts to be in writing in order to be enforceable, and one of those types is contracts for the sale of a business or an interest in a business. Therefore, most states do require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing. Choices A, B, and C are all incorrect because the Statute of Frauds requires certain types of contracts to be in writing, and failure to comply with that requirement usually renders the contract unenforceable. Additionally, whether a contract is executory or already executed does not affect the requirement that it be in writing under the Statute of Frauds.

Which of the Following Statements Is True of the Statute