Under the Provisions of the Statute of Frauds, One Example

question 12

Multiple Choice

Under the provisions of the statute of frauds, one example of a contract that does not have to be in writing to be enforceable is a(n)

• A) promise to pay the debts of another living person.
• B) agreement for the transfer of ownership in real property.
• C) agreement to rent real property for one year or less.
• D) agreement for the sale of merchandise valued at $700.

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Definitions:

Ongoing Payments

Recurring payments that are made on a regular basis for a service or product.

Royalty Fee

A payment made by one party (the licensee) to another (the licensor) for the ongoing use of an asset, typically intellectual property.

Gross Sales

The total sales revenue of a business before any deductions are made for returns, allowances, or discounts.

Franchise Agreement

A legal contract in which a franchisor grants the franchisee the rights to operate a business under the franchisor's brand and system for a specified period.