When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person:
A) can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract.
B) can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services.
C) cannot recover the value of the services because they were rendered under a unilateral mistake of law.
D) can have the party receiving the services arrested for obtaining property by false pretenses.

Question

Quizplus · Accepted Answer

Under the doctrine of quantum meruit (meaning "as much as he deserves"), if an oral contract is unenforceable due to the statute of frauds, the person who performed the services can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services. The law implies a contract to pay a reasonable price for services actually rendered and accepted by the other party. Therefore, option B is the correct choice.

When a Person Has Performed Services Under an Oral Contract