Question

On December 15, Lisa, a landlord, entered into an oral agreement with Tom to lease apartment 5W to Tom for one year starting on January 1, at a rental of $2,000 per month. On the same day Lisa hired Jarvis as superintendent of the building for a period of one year starting January 1 at a salary of $5,000 per month. On December 20, Lisa changed her mind and notified Tom and Jarvis that she would not rent to Tom or employ Jarvis. (a) In an action by Tom against Lisa, judgment for whom if Lisa pleads the Statute of Frauds as a defense? Explain. (b) In an action by Jarvis against Lisa judgment for whom if Lisa pleads the Statute of Frauds as a defense? Explain.

Answer 1

a) In the above information, it is clearly mentioned that Lisa entered into an oral agreement with Tom to lease apartment 5W to Tom for one year starting on January 1, at a rental of $2,000 per month. Thus, there are no documentary evidence which can be presented before the court of Law by Tom to proof that Lisa is guilty or has done fraud. So, as it is an oral agreement, Lisa can change her mind in this case because of many reasons.

b) As Jarvis is hired as superintendent of the building for a period of one year starting January 1 at a salary of $5,000 per month, Jarvis can claim his salary from Lisa but under certain conditions. If the hiring process of Jarvis was done legally and if there is a documentary evidence like an appointment letter, then Jarvis can claim compensation from Lisa on breach of contract. In this, Lisa might have to compensate Jarvis on the grounds stated by the Law.