McCarthey sold controlling stock interests of his newspaper publishing company to TCI in 1997. During that sale transaction (which involved a detailed contract covering all aspects of the sale), McCarthey allegedly articulated a “side agreement” with TCI that provided McCarthey with the right to repurchase the stock from TCI on the five-year anniversary of the sale (in 2002). The side agreement was never memorialized. Before the five-year anniversary, TCI sold its interest in the newspaper to MediaNews. When McCarthey sued for breach of the oral agreement, TCI asserted that the statute of frauds barred his claim.

CASE QUESTIONS

1. Is the oral agreement enforceable? Why or why not?

2. Could the parol evidence rule apply here?