UBE Question of the Day
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Today's Question:
A contractor orally agreed with a marina to erect a boathouse and dig a channel from the boathouse across a neighbor’s property to a lake for the price of $10,000. The marina previously had entered into an oral agreement with the neighbor, whereby the neighbor gave the marina permission to dig the channel across his property. The marina agreed to pay the contractor in three installments: $2,500 before commencement of construction; $2,500 when the boathouse was completed; and $5,000 when the channel was completed. The marina tendered the first installment of $2,500 to the contractor but the contractor refused to accept it or perform. In an action by the marina against the contractor, will the contractor be able to successfully assert a Statute of Frauds defense?
(A) Yes, because construction contracts for $500 or more must be in a writing signed by the party to be charged with breach.
(B) Yes, because the agreement between the marina and the neighbor invokes a real property interest.
(C) No, because there is no privity of contract between the contractor and the neighbor.
(D) No, because the oral agreement between the marina and the contractor is not required to be in writing.
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