Fact Pattern 10-3
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 10-3. The transaction between Grain and Hearty falls within the provision of the Statute of Frauds involving
A) collateral promises.
B) the one-year rule.
C) sales of goods.
D) secondary contracts.

Question

Fact Pattern 10-3 
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 10-3. The transaction between Grain and Hearty falls within the provision of the Statute of Frauds involving​
A) ​collateral promises.
B) ​the one-year rule.
C) ​sales of goods.
D) ​secondary contracts.

Quizplus · Accepted Answer

The Statute of Frauds requires certain contracts to be in writing, including those that cannot be performed within one year. Since the contract between Grain and Hearty involves a two-year term, it falls under the one-year rule of the Statute of Frauds.