Speed Racer orally agreed to sell Smokey a car for $495. Smokey paid Speed Racer a $100 deposit. Two days later, Bandit offered Speed Racer $675 for the car, which was the fair market value. Speed Racer accepted this offer and immediately called Smokey to tell him that he was no longer selling him the car because he had sold it to Bandit. He also informed him that he had returned his deposit by placing it in the mail. Smokey sued Speed Racer for breach of contract, and Speed Racer defends on the grounds that the contract was not in writing as required by the statute of frauds. O

a. Speed Racer will lose becasuse the agreement was not in writing.

b. Smokey will win because the contract did not need to be in writing

c. Smokey will lose because the contract did not need to be in writi g

d. Smokey will lose because he paid a deposit.

e. Speed Racer will win because Bandit paid him more money and he could return the deposit.

Question

Antwan Munoz

Business

18 July, 12:49

Speed Racer orally agreed to sell Smokey a car for $495. Smokey paid Speed Racer a $100 deposit. Two days later, Bandit offered Speed Racer $675 for the car, which was the fair market value. Speed Racer accepted this offer and immediately called Smokey to tell him that he was no longer selling him the car because he had sold it to Bandit. He also informed him that he had returned his deposit by placing it in the mail. Smokey sued Speed Racer for breach of contract, and Speed Racer defends on the grounds that the contract was not in writing as required by the statute of frauds. O

a. Speed Racer will lose becasuse the agreement was not in writing.

b. Smokey will win because the contract did not need to be in writing

c. Smokey will lose because the contract did not need to be in writi g

d. Smokey will lose because he paid a deposit.

e. Speed Racer will win because Bandit paid him more money and he could return the deposit.

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Answers (1)

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Dreamey · Answer 1

b. Smokey will win because the contract did not need to be in writing.

Explanation:

The Statute of Fraud requires that certain contracts must be in writing to be enforceable. Oral contracts are enforceable if they fulfill certain conditions and if the consideration is below $500. The contract between Speed Racer and Smokey is for less than $495 which clarifies that the contract does not need to be in writing. Also Smokey paid $100 as a deposit to Speed Racer which is part performance of the contract. This made the contract enforceable and Speed Racer will lose.