[needhelpnow]

In 20X2, Anchor, Chain, and Hook created ACH Associates, a general partnership. The part­ners orally agreed that they would work full time for the partnership and would distribute profits based on their capital contributions. Anchor con­tributed $5,000; Chain $10,000; and Hook $15,000.

The ACH Associates oral partnership agreement was valid.

Explanation: A contract, including a partnership agreement, must be in writing under the Statute of Frauds in order to be enforceable it cannot be completed within one year. Although the partnership lasted for more than one year, it could have been terminated within one year. As a result, the oral partnership agreement was valid.

BUT I still do not understand why? I thought that it is required to have a contract for anything past 1 year. Please help! Thank you

[leglock]

We were taught that if it is possible for the agreement to be completed in less than one year, it does not need to be in writing. For ex, if you enter a contract with the duration being your lifetime, although in all probability u r goin to live longer than a year, it is possible thT u could die tomorrow and therefore the contract could b fulfilled in less than one year therefore it does not need to be in writing

If the partnership agrmnt is specifically for longer than a year, then it would need to b in writing but that wasnt the case in this problem

[needhelpnow]

@leglock

That makes a lot of sense! Thank you!

[Author]

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