In the Presence of Several Witnesses, a Verbally Agreed to Purchase

question 34

Multiple Choice

In the presence of several witnesses, A verbally agreed to purchase B's farm for $25,000. The next day, B changed his mind and refused to sell the farm toA. On the strength of the verbal agreement of purchase and sale in the presence of witnesses, A sued B for breach of contract and for a decree of specific performance to compel B to sell him the farm.

• A) The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.
• B) The verbal agreement is unenforceable.
• C) The verbal agreement is void.
• D) B may successfully plead the Statue of Frauds as a defence.
• E) The verbal agreement is unenforceable and B may successfully plead the Statue of Frauds as a defence.

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Definitions:

Unfamiliar Culture

A culture that is not known or experienced before, often encountered in international travel or business.

Political Risk

The possible loss of investment or control over a foreign asset because of political changes in the host country.

Host Country

The country in which a multinational company operates a facility or office, outside of its home country.

Managerial Control

Managerial control involves processes and systems that an organization uses to regulate activities and achieve its objectives by guiding employee behavior.