Landry Company contracted orally with Newell to pay her
$50,000 for the completion of an ethics audit of Landry Company.
The report is to span a period of time of at least ten
months and is due in fourteen months from now. Newell has
agreed orally to perform the ethics audit and says that she will
begin within three months, noting that even if she delays the full
three months, she will have the report ready within the fourteenmonth
deadline. Does this contract fall under the Statute of
Frauds?

(c) Under The Statute of Frauds, agreements that can
be performed within one year of their making can be oral. In this
case the ethics audit need only span ten months and the completion
of the report will take less than one additional month for a
total of less than one year. We know that the report can be done
in less than a month because Newell points out that even if she
delays start for three months, she will still complete the tenmonth
audit before the fourteen-month deadline. The fact that it
might take longer than a year does not require it to be in writing
since it possibly could be completed within one year. Answer
(a) is incorrect because the $500 provision is for sales of
goods not services. Answer (b) is incorrect because the contract
can be completed within one year. Answer (d) is incorrect because
there is no such provision involved here for the Statute of
Frauds.