Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by
A) mutually agreeing not to commit fraud.
B) repeating the terms in a phone call.
C) setting out the terms in a memo.
D) shaking hands on the deal.

Question

Swift Trucking, Inc., and Trailer Rents Corporation are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by
A) ​mutually agreeing not to commit fraud.
B) ​repeating the terms in a phone call.
C) ​setting out the terms in a memo.
D) ​shaking hands on the deal.

Quizplus · Accepted Answer

The best choice to satisfy the Statute of Frauds is to set out the terms in a memo. This creates a written record of the agreement and satisfies the requirement for a written contract for agreements involving payments of more than $5000. Choices A, B, and D do not provide the necessary written evidence and would not satisfy the Statute of Frauds.