Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000.Chelsea pays him $100,000 and moves in.A month later,Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing.Which of the following options does either party have?
A)Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void.
B)The contract cannot be rescinded by either party as it has already been executed.
C)Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds.
D)Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Question

Quizplus · Accepted Answer

The contract has already been executed by both parties (Chelsea has paid and moved in), making it enforceable despite not being in writing. The Statute of Frauds requires certain contracts to be in writing, but once a contract is fully executed, it generally cannot be rescinded on the basis of noncompliance with the Statute of Frauds.

Jonas Enters into an Oral Contract with Chelsea to Lease