Which of the Following Contracts Would Fall Outside the Statute

question 20

Multiple Choice

Which of the following contracts would fall outside the statute of frauds and does not require a writing?

• A) Lani offers to paint Ry's house for $1,000.
• B) Lani offers to buy Ry's horse for $1,000.
• C) Lani offers to marry Ry in three years.
• D) Lani offers to pay Ry's student loan if Ry defaults.
• E) Lani offers to buy the corner of Ry's property where Ry's horse grazes.

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Definitions:

Mechanic's Lien

A legal claim against a property for unpaid construction work or supplies, giving the contractor a right to secure payment.

Perfected Security Interest

A legal state where a creditor has taken all necessary steps required by law to enforce a security interest against the debtor's collateral in case of default.

Purchase Money Security Interest

A legal claim or lien on collateral that secures payment of the debt used to buy the collateral, often applied in context with the sale of personal property.

Good Faith

The sincere intention to be fair, open, and honest, regardless of the outcome of the interaction.