Question

If an oral contract has been declared unenforceable under the statute of frauds, yet one of the parties has rendered some performance under the contract that conferred benefits on the other party, he or she can recover the reasonable value of the performance in _____.

Answer 1

Answer:

Promissory estoppel

Explanation:

If an oral contract has been declared unenforceable under the statute of frauds, yet one of the parties has rendered some performance under the contract that conferred benefits on the other party, he or she can recover the reasonable value of the performance in promissory estoppel.

The statute of fraud requires that contracts exceeding $500 in value, or involves the sale of landed property or extending a period of a year or more in length must be in writing and not oral. However, in a situation whereby a party has rendered some performance in the contract that confers benefits on the other party, the other party is obligated to also perform his/her part of the contract under the doctrine of promissory estoppel. The doctrine of promissory estoppel insist that an individual or party to a contract must perform his/her obligation or promise, even though there is not written proof of a contract as far as the other party has rendered some form of performance.