Question

The Writing Requirement: Jason Novell, doing business as Novell Associates,

hired Barbara Meade to work for him. The parties orally agreed on the terms of
employment, including payment of a share of the company's income to Meade,
but they did not put anything in writing. Two years later, Meade quit. Novell then
told Meade that she was entitled to $9,602 - 25% of the difference between the
accounts receivable and the accounts payable as of Meade's last day of work.
Meade disagreed, and demanded more than $63,500 - 25% of the revenue from
all invoices, less the cost of materials and outside processing, for each of the years
that she had worked for Novell. Meade filed a lawsuit against Novell for breach of
contract.
Discuss whether or not there is an enforceable contract (including a discussion on
the Statute of Frauds and any exception -if any - that may apply).

Answer 1

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing and signed by the parties in order to be enforceable. One of the types of contracts that typically falls under the Statute of Frauds is a contract for the sale of goods for a price of $500 or more. In this case, it appears that the oral agreement between Jason Novell and Barbara Meade may fall under the Statute of Frauds because it involves payment of a share of the company’s income to Meade.

However, there are several exceptions to the Statute of Frauds that may apply in this case. One exception is the doctrine of part performance, which allows an oral contract to be enforced if one party has partially performed their obligations under the contract and the other party has accepted that performance. In this case, it appears that Meade partially performed her obligations under the contract by working for Novell for two years. If Novell accepted her performance by paying her a share of the company’s income during that time, then the doctrine of part performance may apply and the oral contract may be enforceable.

Ultimately, whether or not there is an enforceable contract between Novell and Meade will depend on the specific facts and circumstances of the case, including whether any exceptions to the Statute of Frauds apply. A court would need to evaluate all of the evidence and arguments presented by both parties in order to determine if there is an enforceable contract.