Question

On February 1, 2020 Britney contacts Fancy Weddings, Inc. about being the event management company to coordinate her wedding in June 2020. They discuss what Britney is interested in for the wedding and agree to perform all the wedding services at a cost of $10,000. Fancy sends a written contract to Britney outlining everything both parties had agreed to and Britney calls Fancy back and advises she received the letter and is an accurate description of their agreement, but Britney never signs the contract. On March 1, 2020 Britney calls back Fancy and tells them the deal is off because she thinks she can do a better job by herself. Fancy sues Britney and Britney argues a lack of consideration as a defense.

A. Will this defense be successful? Please explain.

B. Under the same facts as above Britney argues that the contract is not binding because of the Statute of Frauds. Will this defense be successful? Please explain.

Answer 1

1. This defense will not be successful since there is consideration between both the parties involved. All the essential requirements of consideration are met, that is Britney had agreed to the contract between both parties and basis her agreement, the work had started. Also consideration can be past, present or future. So even if Britney's agreement was in the past and she refused later on, that does not mean that it will not be consideration of both parties. Also consideration can be inadequate, so even in the absence of signing on the written agreement, consideration between both parties is established.

2. Yes, this defense will be successful since Statute of Frauds states that for a contract to be binding, there must be acceptance of the contract and the parties must sign the contract. Unless the parties have not signed the contract, the contract cannot be established and the contract will not be binding in nature.