Question

On December 1, 2017, Piles of Widgets (P.O.W.) agreed to sell its entire business to World of Widgets (W.O.W.). The agreement is in three parts – the sale of POW’s inventory of widgets for $50,000, the transfer of POW’s ownership interest in its widget storage warehouse and WOW’s agreement to employ key POW executives for a minimum of 24 months. Which of the agreements must be in writing under the Statute of Frauds?

O All parts of the contract muct be in writing
O The agreement for the sale of widgets.
O The agreement to employ key POW executives.
O The agreement for the sale of the warehouse.

Answer 1

The answer is D, The agreement to employ key POW executives.

Step-by-step explanation:

Statute of fraud agreement is a type of agreement that implies that an agreement must meet certain and specific requirement and must be put down in writing, backed up with necessary evidence and signed by both agreeing parties.

Of one of those specific requirement is that agreements that can not be concluded in the duration of one year of the contract being made must be put down in writing and signed.

Referencing the narrative of the question, world of widgets agreement to employ key POW executives for a minimum of 24 months falls under one of the requirements under the statute of fraud thus the right answer is D.