The Key to Determining Whether a Contract Is Enforceable Under

question 28

Multiple Choice

The key to determining whether a contract is enforceable under the one-year rule of the statute of frauds is the answer to which of the following questions?

• A) Is it possible to carry out the terms of the contract within one year of the date of the agreement?
• B) Is it likely that the parties will carry out the terms of the contract within one year of the date of the agreement?
• C) Is it reasonable to expect that the parties will carry out the terms of the contract within one year of the date of the agreement?
• D) Do the parties wish to carry out the terms of the contract within one year from the date that the contract will actually begin?

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Definitions:

Price Level

A measure of the average of current prices across the entire spectrum of goods and services produced in the economy, often used to analyze inflation.

Classical Model

An economic theory that emphasizes the role of free markets in regulating economic activity and suggests that markets naturally move towards full employment.

Prices and Wages

The amount of money required to purchase goods and services, and the payments made to workers for their labor, respectively.

Long-Run Aggregate Supply Curve

This curve represents the total output of goods and services that an economy can produce when it is most efficiently using all of its resources, unaffected by short-term fluctuations in demand.