Rico's Construction Company and Andrew's Hardware Store entered into a contract to build and sell houses together. Andrew's Hardware Store will supply the materials, Rico's Construction Company will build the houses, and the two companies will share the profits based on their contributions. The contract stipulates that they will build five houses in three years. What statement is TRUE regarding this contract?

Question

Quizplus · Accepted Answer

This contract must be in writing to be enforceable because it is a three-year contract. Most states require that the following types of contracts be in writing: contracts involving the sale of or interest in land, contracts to pay somebody else's debt, contracts that cannot be fulfilled within one year, and contracts for sale of goods that cost more than $500.

Rico's Construction Company and Andrew's Hardware Store Entered into a Contract