Question

Coverage of Statute of Frauds in partnership contract, which is the exemption?

a. Promise to answer for the debt, default or miscarriage of another by a partnership must be in writing.

b. If the agreement to form a partnership shall be performed within a year the same must be in writing.

c. Contracts for the sale of real property or any interest therein or leasing of partnership immovable property for
more than one year must be in writing.

d. Sale of partnership personal property at a price not less than P500 must be in writing, unless there is delivery or
payment.

Answer 1

The exemption to the Statute of Frauds requirement for partnership contracts is that a sale of partnership personal property does not need to be in writing if there is delivery or payment, even if the price is P500 or more. The Statute of Frauds is important for preventing fraud and protecting personal assets through limited liability partnerships.

Step-by-step explanation:

The coverage of the Statute of Frauds in partnership contracts typically requires certain agreements to be in writing to be enforceable. Looking at the options provided, the exemption to the requirement of a written contract in the context of partnerships would be, 'Sale of partnership personal property at a price not less than P500 must be in writing, unless there is delivery or payment.' This means that if the personal property is delivered or paid for, a written agreement is not necessary for the sale to be valid even if the price is P500 or more.

A limited liability partnership (LLP) provides the advantage of limiting the partner's personal liability to the extent of their investment in the business, meaning personal assets are protected in the event the business fails. The Statute of Frauds exists to prevent fraudulent claims and ensure the credibility of agreements that involve significant consequences or complexities.