10. Edward and Ivan make an oral contract for the sale of some land at a price o
ID: 450026 • Letter: 1
Question
10. Edward and Ivan make an oral contract for the sale of some land at a price of $490,000. After paying Edward $90,000 of the purchase price, Ivan took possession of the land. One month later, Edward got an offer to sell the land to someone else for a greater amount than Edward paid. Edward argued that the parties' oral agreement is unenforceable under the statute of frauds. Which of the following is most correct?
A. Edward is correct, because this is an oral contract for the sale of real estate
B. Edward is incorrect, because Ivan paid part of the purchase price and took possession
C. Edward is incorrect, because the contract is for an indefinite period of time
D. Edward is correct, because the contract is for an amount greater than $500
E. none of the above is correct
20. Louis worked for Stickum, Inc., a manufacturer of adhesives. One day Louis was called into the president's office and, during their talk, the president left the room leaving Louis alone. On the president's desk, Louis saw an envelope labeled Adhesive Formulas. He opened it and saw that it was a list of formulas for the company's bestselling adhesives. He made a copy of the Formulas and returned the envelope to the desk. That afternoon he called a competitor of Stickum and informed it of the information he possessed and they arranged a meeting.
A. If Louis sells the Formulas to the competitor, Louis is guilty of misappropriation but the competitor is not guilty of misappropriation.
B. If Louis sells the Formulas to the competitor, both Louis and the competitor are guilty of misappropriation.
C. If Louis sells the Formulas to the competitor, Louis is not guilty of misappropriation but the competitor is guilty of misappropriation.
D. Neither Louis not the competitor can be guilty of misappropriation because leaving the Formulas on the desk shows that the secret was not guarded as is necessary to qualify for trade secret protection.
Explanation / Answer
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Option C: Edward is incorrect, because the contract is for an indefinite period of time
The statue of fraud applied to oral contract and make oral contract enforceable if there is sufficient evidence. There are many circumstances where statue of fraud is enforceable. One of which says that contract that cannot be performed in 1 year and contract of sale of goods worth more than $500 is enforceable under statue of fraud.
11.
Option B: If Louis sells the Formulas to the competitor, both Louis and the competitor are guilty of misappropriation.
Misappropriation is illegal use of other property or fund other person for unauthorised. Both Louis and competitor is guilty of misappropriation as Louis steal the sold the formula which for which she was not authorised and the competitor used the formula for which he was not authorised
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