When Dealing with the Prohibition in the Statute of Frauds

question 96

Multiple Choice

When dealing with the prohibition in the Statute of Frauds regarding oral contracts not to be performed in a year,which of the following is TRUE?

• A)An oral contract that is for an indefinite period,but could be performed within a year,is not prohibited by the Statute.
• B)An oral contract that is to be performed over a period of one year,commencing the day after the formation of the contract,is not prohibited by the Statute.
• C)An oral contract that is to be performed over a period of one year,but commences two days after the conclusion of the contract,is prohibited by the Statute.
• D)An oral contract that provides for a specific period for performance of more than a year,but also confers a power of determination that may be exercised within the year,is prohibited by the Statute.
• E)all of the above

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Definitions:

Demand

It represents the quantity of a good or service that consumers are willing and able to purchase at various prices.

Supply

The total amount of a product or service that is available to consumers.

Elastic

Describes a situation where the demand for a good or service significantly changes in response to a change in price.

Optimal Tax

A taxation principle aiming to maximize economic efficiency without imposing undue burdens or distortions.