In January,E-treme Inc.entered into an oral contract with Ralco,LLC,an accounting firm,for the preparation of its tax return.The contract is:
A) unenforceable under the statute of frauds since it is not in writing.
B) unenforceable under the UCC since it is not in writing.
C) enforceable, but only up to a value of $10,000.
D) enforceable even though it is oral.

Question

Quizplus · Accepted Answer

The contract for preparation of tax returns is not subject to the statute of frauds or the UCC's requirement for a written contract, so an oral contract is enforceable. However, it is always better to have a written contract for clarity and to avoid misunderstandings.

In January,E-Treme Inc