On January 18th, Donald, a wholesaler of ties, entered into two oral agreements with Joe, a famous clothing designer and manufacturer.The first agreement provided that Joe was to sell to Donald, a thousand ties, which Joe had in stock, for $20,000, payment and delivery to be on February 18^th at Donald's place of business.The second agreement provided that for the next two years, Joe would work for Donald to design for Donald, all of Donald's line of ties to be manufactured by Donald, at an annual salary to Joe of $150,000. The parties also agreed that if Joe ever quit his contract, for Donald in the two years, Donald, Joe had to pay Donald, $50,000.

On February 1, Joe received from Donald, a written confirmation of their two oral agreements signed by Donald together with Donald's check for $25,000 as an advance against Joe's first year's salary as a designer.Joe promptly deposited the check in his account.

On February 15, 2020, Joe changed his mind about the two agreements and informed Donald that he refused to perform either one and that he was keeping the $25,000 as compensation for the time he had spent negotiating the agreements and thinking about possible designs.

Donald now sues Joe for breach of contract.Joe pleads the statute of frauds as his defense.Judgment for whom?

(a) On the first agreement?Explain.

(b) On the second agreement?Explain.

(c) Assuming that the employment contract is valid, and Joe fails to work for Donald for two year, how much does Joe owe Donald? Explain. (30 points)