Which of the Following Contracts Would Fall Outside the Statute

question 85

Multiple Choice

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

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

---

Definitions:

Lessor

An entity or individual that owns an asset and grants another party the right to use that asset in exchange for periodic rental payments.

Capital Lease

A lease classified by the lessee as an asset and liability on the balance sheet because it effectively transfers substantially all risks and rewards of ownership to the lessee.

Executory Costs

These are costs associated with fulfilling the terms of a contract, excluding the direct material and direct labor costs, such as utilities, insurance, and property taxes involved in leasing.

Bargain Purchase Option

A lease provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.