Asked by Andrew Young on Jul 16, 2024
Verified
Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
A) all terms.
B) the essential terms.
C) the preliminary terms.
D) the quality terms.
Essential Terms
The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.
Unenforceable
Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.
- Ascertain the necessary elements to be encompassed in a written contract according to the Statute of Frauds.
- Identify situations in which verbal contracts are legally binding.
Verified Answer
BP
Biviana PimentelJul 17, 2024
Final Answer :
B
Explanation :
The written memorandum must contain the essential terms of the agreement to be enforceable. This includes the identification of the parties, the subject matter of the agreement, the consideration (price and payment terms), and any other essential terms necessary to understand the parties' obligations.
Learning Objectives
- Ascertain the necessary elements to be encompassed in a written contract according to the Statute of Frauds.
- Identify situations in which verbal contracts are legally binding.