Sand orally promised Frost a $10,000 bonus, in addition to a monthly salary, if Frost would work two years for Sand. If Frost works for the two years, will the statute of frauds prevent Frost from collecting the bonus?
A.
No, because Frost fully performed
B.
No, because the contract did not involve an interest in real estate
Incorrect C.
Yes, because the contract could not be performed within one year
D.
Yes, because the monthly salary was the consideration of the contract
Here is the Explanation
Answer A
“The statute of frauds applies only to contracts for the sale of goods, a transfer of interest in land, promises to pay for the debts of another, or contracts that cannot be performed within one year. Consequently, the statute of frauds will not be considered in the performance of this contract.
Frost did fully perform and therefore a contract has been created. A contract contains an offer, acceptance of the offer, and valid consideration. Sand offered Frost a bonus, Frost agrees to work the two years (acceptance), and the $10,000 is the motivation or consideration for the contract.”
What part of question indicates that Frost Fully performed?
FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84
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