Baker and Able Signed a Contract Which Required Able to Purchase

question 39

Multiple Choice

Baker and Able signed a contract which required Able to purchase 600 books from Baker at 90¢ per book.Subsequently,Able,in good faith,requested that the price of the books be reduced to 80¢.Under the circumstances,the oral agreement is:

• A) unenforceable,because Able failed to give consideration,but proof of it will be otherwise admissible into evidence.
• B) unenforceable,due to the statute of frauds,and proof of it will be inadmissible into evidence.
• C) enforceable,but it is not a valid agreement.
• D) enforceable,and proof of it will be admissible into evidence.

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Definitions:

Distributorship

A type of franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

Franchise

A business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is liable for its debts, and one or more limited partners, who contribute capital and share in profits but have limited liability.

General Partner

An owner of a partnership who is responsible for its management and is personally liable for its debts.