Contracts and Sales Multistate Bar Practice Exam

What occurs if a contract meeting the Statute of Frauds criteria does not meet the writing requirement?

1. The contract is enforceable if both parties agree

2. Restitution may be sought for performance rendered

3. The parties must re-write the contract

4. It is automatically considered null and void

The correct answer is: Restitution may be sought for performance rendered

When a contract that falls under the Statute of Frauds criteria fails to meet the writing requirement, it does not render the contract completely void. Instead, a party may seek restitution for any performance that has been rendered under the contract. This principle acknowledges that while the contract may not be enforceable as originally intended due to the lack of a written agreement, the law still recognizes the efforts and contributions made by the parties involved. Restitution allows a party to recover the value of benefits conferred to the other party, aiming to prevent unjust enrichment. For instance, if one party has performed services or delivered goods in reliance on the contract, they may pursue restitution for the value of those services or goods even if the contract itself is unenforceable. This underscores a fundamental principle in contract law where courts strive to ensure fairness and prevent one party from benefiting at the expense of another without compensating them. The other options suggest alternative outcomes that are not consistent with contract law principles regarding the Statute of Frauds. There is no requirement for parties to agree to enforce an unenforceable contract or to re-write it, nor is the contract automatically null and void when there is an opportunity for restitution.