Alice Ace was the owner of Ace Construction, Inc., (ACI). Her income was, of course, tied to the productivity of her company. When the firm's computer system needed replacing, she went to Computer Store and orally agreed to pay the $25,000 cost of the new system if ACI did not. Indeed ACI did not pay, but when Computer Store tapped Alice, she raised the statute of frauds as a defense: her agreement to pay if ACI did not was not in writing. Now what?

Question

Quizplus · Accepted Answer

The "main purpose" exception to the statute of frauds applies when the primary motive for entering into the contract is to benefit oneself, rather than acting as a guarantor for another party. In this case, Alice's primary motive for agreeing to pay for the computer system was to benefit her own company, ACI, and its productivity. Therefore, the "main purpose" exception may apply and Alice may be liable to Computer Store for the cost of the new system.

Alice Ace Was the Owner of Ace Construction, Inc