An Oral Contract Is Made Between an Agent and a Seller

question 26

Multiple Choice

An oral contract is made between an agent and a seller for the sale of real property. The seller refuses to pay the commission after the sale of the property. This contract between the seller and the agent is:

• A) a valid contract and can be sued upon
• B) a voidable contract because the agent had the option to call it off
• C) an unenforceable contract because the Statute of Frauds requires agreement for compensation to be in writing
• D) an enforceable contract because the agent and seller had an agreement

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Definitions:

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Variance

A measure of the spread of a set of data points around their mean value, indicating how much the data varies.

Binomial Random Variable

A type of random variable that results from an experiment consisting of a fixed number of independent trials, each with two possible outcomes (success or failure).

Hypergeometric Probability

The probability of a certain number of successes in draws, without replacement, from a finite population that contains exactly two kinds of objects.