Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. The state Statute of Frauds lists the situations where a contract must be in writing to be enforceable. True or False 7. An enforceable

6. The state Statute of Frauds lists the situations where a contract must be in writing to be enforceable. True or False

7. An enforceable contract always requires:

A) each party is at least 18 years old

B) cash going from one party to another

C) a signed, written document

D) mutual consideration of some kind

8. On May 1, Sara makes a written offer to purchase her friend Mariellas Tesla for $50,000, payable on May 10. Mariella takes home the written offer to think about it. That night, she goes to a party and gets completely intoxicated. She is driven home by Sara and Donna. Sara helps Mariella to sign the agreement before Donna helps Mariella to lay down on her bed and pass out. When Mariella wakes up, she sees a copy of the signed agreement, but remembers nothing about how that happened. Mariella will be bound by this agreement because she signed it. True/False

9. Rachel is a poor college student, struggling to work part-time and go to college full-time. Rachels uncle Roger (feeling sorry for Rachel) sends her a letter in which he promises to pay Rachel $300 per month for the next year, so that Rachel can finish up her Associates Degree. Rachel then quits her job to focus on her studies. Roger makes two monthly payments, but then stops making payments, with no explanation at all. Rachel writes Roger, asking for him to explain, but she never hears back from him. If Rachel takes this to court to try to get the remaining $3,000, what is the likely result?

a. Roger should win, as he did not ask Rachel to quit her job, and they did not have a contract.

b. Roger should win, as family members cannot sue each other for breach of an agreement like this.

c. Rachel should win, as a contract was formed when Roger promised to pay her the $300 per month support for a year.

d. Rachel should win. Even though there was no legal contract here, there is another legal theory that Rachel can use to win her case against Roger.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions