Question

a contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible. a contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible. true false

Answer 1

The statement is true; contracts that cannot be completed within a year of their formation must be in writing due to the Statute of Frauds.

Step-by-step explanation:

The statement mentioned is true. This principle is commonly referred to as part of the Statute of Frauds, which is a legal concept requiring certain types of contracts to be in writing to be enforceable. Specifically, any contract that cannot be performed within one year of its making must be in writing.

This rule exists because the longer the period before the performance of the contract, the greater the chance for disputes and the more difficult it becomes to recall the exact terms of the verbal agreement. It is essential for maintaining trust in business transactions as it ensures that there is clear evidence of the terms agreed upon which holds significant value in legal disputes.