Activity:

1. A and B, neighbors, orally agreed that A would sell and would buy A’s transistor radio for
P200.00 three years from the date of the agreement. At the end of three years, A refused to
hand over the radio although B was willing to pay. Is the agreement enforceable under the
Statute of Fraud?

No, it is unenforceable unless ratified. Even though the price of the thing is not more than 500 Php.
but by the fact that the terms of the contract are not to be performed within a year from the making
of it. Neither one party may enforce the contract against to each other as it was not in writing and
subscribed by the two parties.

2. A and B, neighbors, orally agreed that from that day, B would not erect a garage on his
property till after three years. A week later, B began to erect the garage in violation of the
agreement. A complains and B sets up the Statute of fraud as a defense. Decide.

B can use the statute of fraud as defense because the terms of the contract is not to be performed
within a year from the making of it. In this case, a contract with an obligation not to do will be
considered as executed if B fulfilled it until after 3 years and it can not be done in part. There should
have a written documents to support and serves as an evidence. Therefore the contract is
unenforceable unless ratified.

3. A borrowed money from B, with C as guarantor. When asked, C agreed to guarantee A’ s

debt. A failed to pay. B demanded payment from C. C refused and sets up the Statute of
fraud as a defense. Decide.

C may use the statute of fraud as defense because in a special promise to answer for the debt,
default, or miscarriage of another, there should be a written document to serves as an evidence.
Therefore, the contract is unenforceable unless ratified.

4. A asked B to purchase certain properties from C who was orally assured by A that he (A)
would pay for them. Later C sued A, who pleaded in defense the Statute of Fraud. Decide.

This case is not under the the statute of fraud anymore, so A can not use the statute of fraud as
defense. However, the contract is enforceable since A gave his authority to B to use his name to
purchase certain properties from C and it did not mentioned in this case that B acted in excess of
authority given to him. A, by giving his authority makes him liable.

5. A sold B his pen for P500.00. B pays P250 as partial payment. Upon demand, A refused to
hand over the pen although B was willing to pay the balance. Is the agreement enforceable
under the Statute of Fraud?

Yes, the contract is enforceable. If the price of the thing is 500 php or less, the contract of sale is
enforceable even though it is not in writing. And by the fact that A accepted the 250 php down
payment from B, it makes the contract partially executed and considered ratified.

6. A and B entered into a verbal contract of lease for one year. Is the contract enforceable?

Yes, it is enforceable. If the contract of lease is one year or less, it makes the contract enforceable
even though it is not in writing.
 7. A was borrowing money from B, and gave C as his reference. When asked, C assured that it
is safe to lend money to A for A has money with him. Is the representation made by C
binding upon him?

No, because it is unenforceable for the reason of not being in writing. In this case B can not sued
against C to recover for damages.