Question

In: Economics

Jack and Diane are both 25 years old. They agree to the following contracts: Jack agrees...

Jack and Diane are both 25 years old. They agree to the following contracts:

  1. Jack agrees to buy Diane’s phone for $300.
  2. Jack agrees to buy Diane’s car for $6,000.
  3. Jack rents an apartment from Diane for 2 years.
  4. Jack buys a vacation house on .20 acres from Diane.
  5. Jack agrees that, if Diane has lunch with him every Saturday until Jack retires, Jack will pay Diane $2000.
  6. Jack helps Diane get a car loan. He promises Diane’s lender that if Diane is unable to pay the car loan, Jack will make the payments (assume Jack receives no benefit himself for this promise, he is just doing Diane a favor).

Which of these contracts falls within the statute of frauds and requires a writing? Then, if a contract falls within the statute of frauds, which of the 5 categories does it fall under?

Solutions

Expert Solution

Following falls under the statue of frauds:

  • Jack agrees to buy Diane's car for $6,000 : Sale of Goods over a specified amount
  • Jack rents an apartment from Diane for 2 years.: Contracts not to be performed within 1 year
  • Jack agrees that, if Diane has lunch with him every Saturday until Jack retires, Jack will pay Diane $2,000 : Guarantees or promises made by Executor
  • Jack buys a vacation house on 0.20 acres from Diane : Contracts for an interest in land.
  • Jack helped Diane get a car loan. He promises Diane's lender that if Diane is unable to pay the car loan, Jack will make the payments: Executor's promises to pay a decedent's debt.

Rahul Sunny answered 2 years ago
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