Sarah and First Financial Corp. enter into an oral employment contract under which First Financial Corp. agrees to hire Sarah for five years. Before Sarah begins, First Financial Corp. backs out of the contract. If Sarah sues to enforce the contract,

she will be able to successfully sue to enforce the contract or receive damages for the full five year term.

she will be able to successfully sue to enforce the contract or receive damages for one year of the contract, but the remaining four years will be unenforceable because of the Statute of Frauds.

she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.

she will not be able to enforce it because fixed term employment contracts are illegal.

Question

Business

Harmony Burke

4 June, 09:31

Sarah and First Financial Corp. enter into an oral employment contract under which First Financial Corp. agrees to hire Sarah for five years. Before Sarah begins, First Financial Corp. backs out of the contract. If Sarah sues to enforce the contract,

she will be able to successfully sue to enforce the contract or receive damages for the full five year term.

she will be able to successfully sue to enforce the contract or receive damages for one year of the contract, but the remaining four years will be unenforceable because of the Statute of Frauds.

she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.

she will not be able to enforce it because fixed term employment contracts are illegal.

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Answers (1)

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Omar Douglas · Answer 1

she will not be able to enforce it, because it is voidable by First Financial since it violates the Statute of Frauds.

Explanation:

All contracts that last for more than one year fall under the Statute of Frauds and therefore, must be in writing and signed by both parties. Even if the contract was for one year and one day, it must be in writing. The non-breaching party, Sarah, cannot even sue for damages corresponding to only the first year because the contract is considered to be one and cannot be divided into parts.