Back to School: Test Your Contract Law Smarts

Even though oral agreements can be valid, we all know it is better to put agreements into writing. But are there circumstances where you must put the agreement into writing lest you go home empty handed?

Take this quiz to test your New York contract law smarts:

1. Are all oral agreements enforceable in New York?

Yes, written agreements are for the weak.
No, oral agreements between a New York business and  a New Jersey business require a writing to be enforceable.
No, New York law sets forth important exceptions to the general rule that oral agreements are enforceable in the so called "Statute of Frauds."

2. I entered into an oral agreement to exclusively deliver widgets to my customer for the next three years.  Is this agreement enforceable?

Sure, this is your biggest customer.
Yes, because the agreement is for a term of three years.
No, agreements that cannot be performed within one year require a written agreement to be valid.

3. I entered into an oral agreement to sell 25 dishwashers to a local retail store for $599 each.  Is this enforceable?

Sure.
No way, if that much money is involved something has to be in writing.
Since we are both merchants the oral contract is enforceable.

4. I agreed orally to guaranty my brother's indebtedness to his bank.  Can I get out of this?

Sure, if you leave the country and never come back.
Yes, the oral guaranty is not enforceable.
No, everything said to a bank is as good as written in stone.

picture by Vee Dub protected under Creative Commons License Attribution 2.0