Statute of Frauds and Third Party Rights.
Scenario 1.
In the past, a third party was not allowed to enforce a contract if he was not part of it. However, the third-party rights in contract law were introduced in 1999 whereby a third party right on the contract comes into existence when two parties enter into a contract for the benefit of the third party, as in the case of Bobby, Brenda, and Walker Ford. This, therefore, means that Booby is a third party beneficiary and has a right to sue Walker Ford in case he never delivers the car. As in the case example of Ocean Putnam Corp v Interstate Wrecking Co, ‘if the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.’
Scenario 2.
The contract is enforceable in the statute of frauds. The statute of frauds requires certain types of deals to be executed in writing, including contracts for the sale of goods worth a certain amount, usually $500. An exception to this is where work has begun and based on an oral agreement. Still, the statute of frauds applies in these cases, for example, the one in scenario 2. Kathy was to purchase cartons worth $35000 from Pierce, who faxed an invoice to Kathy. There was a contract made by word of mouth. The statute of frauds affirms that in case of a breach, the defense should prove that indeed the contract was in existence. As in the case example of Patricia Heib v Hobbery & Associates, it was affirmed that ‘a plaintiff’s obligation to provide grounds of his entitle[ment] to relief requires more than labels and conclusions’. In this case, Kathy can prove through the invoice that the contract existed making Pierce liable to refund due to no communication of losing the down payment because of not paying the balance due.
References.
Hawkins, D. (2016). Statute of Frauds-Estate. Wisconsin Law Journal.
Harris, A. P. (2018). The Doctrine of Promissory Estoppel in an Arm’s Length Commercial Transaction in Tennessee: A Primer. U. Mem. L. Rev., 49, 813.
Choi, Y. (2019). A Comparative Study on Third-party Beneficiaries of Contracts: Under the US Common Law of Contracts and the Korean Civil Code 38(1), 5-29.