- 1 Marks
BCL – L1 – SA – Q21 – Contract Law
Question
Sammy agreed to sell, and Larry agreed to buy Sammy’s car for $400, payable upon delivery. Sammy delivered and left the car with Larry. However, Larry failed to pay Sammy the $400. After eight years had passed following the delivery and acceptance of the car by Larry, Sammy sued Larry in state court for failure to pay him the $400. Based only on the above stated facts, which of the following statement is most accurate? Assume the UCC applies and the statute of limitations for oral contracts is two years and for written contracts is four years.
A No contract was ever created between Sammy and Larry.
B A contract was created but likely not enforceable because the statute of limitations has expired.
C A contract was created, but it is only enforceable if it is in writing.
D A contract was created and is enforceable.
Answer
B
Explanation:
The question involves a contract for the sale of a car under the Uniform Commercial Code (UCC). A contract was formed when Sammy agreed to sell and Larry agreed to buy the car for $400, with delivery and acceptance occurring. However, the UCC applies, and the statute of limitations for contracts is relevant. The question specifies that the statute of limitations is two years for oral contracts and four years for written contracts. Since eight years have passed since the breach (non-payment upon delivery), the statute of limitations has expired for both oral and written contracts. Therefore, while a contract was created, it is likely not enforceable due to the expiration of the statute of limitations. Option B correctly reflects this analysis.
- Tags: Breach of Contract, Contract Law, Enforceability, Statute of Limitations, UCC
- Level: Level 1
- Topic: Contract Law
- Uploader: Samuel Duah