Question

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against __________.A) ​no one.
B) ​Lucas and Natural.
C) ​Lucas.
D) ​Natural.

Answer 1

Answer:

C) ​Lucas.

Explanation:

Both UCC and the statute of frauds require that this sale agreement must be written. UCC states that contracts over $500 must be in writing and I suppose the company is worth more than $500. The statute of frauds requires that contracts involving real property, and now again I suppose that Mountain Springs has at least one real property, need to be in writing.

Both regulations establish that a signature must be present in order for the contract to be binding. Since Lucas signed the agreement (it doesn't have to be a contract, only an agreement), then it is enforceable against him. But it is not enforceable against Natural Beverages since they didn't sign it.