Question

Can either party demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds?

1) Yes, either party can demand rescission.
2) No, neither party can demand rescission.
3) Only the party who executed the contract can demand rescission.
4) Rescission is not allowed for oral contracts.

Answer 1

No, neither party can demand rescission of a fully executed oral contract that was required to have been in writing under the statute of frauds.

Step-by-step explanation:

No, neither party can demand rescission.

According to the statute of frauds, certain contracts, including contracts that cannot be performed within one year, must be in writing to be enforceable. If a contract is required to be in writing but is instead an oral contract, neither party can demand rescission of the fully executed contract.

This means that even though the oral contract was not in compliance with the statute of frauds, once both parties have fully performed their obligations under the contract, they cannot rescind it, as both parties have already received the benefits of the contract.