Why is it a bad idea for Edward and his landlord to make an oral lease contract for $30,000? Suggest an alternative and explain how it is beneficial to an oral contract
What will be an ideal response?
It is a bad idea for Edward and his landlord to make an oral lease contract for $30,000 as such a contract is vulnerable to fraud. Instead, they must create a written contract in accordance to Section 2A-2011. of the Uniform Commercial Code (UCC), which is the Statute of Frauds provision that applies to the lease of goods. It states that lease contracts involving payments of $1,000 or more must be in writing. If a lease payment of an original lease contract is less than $1,000, it does not have to be in writing under the UCC Statute of Frauds. However, if a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable. The most recent revision to UCC 2A-201 requires that lease contracts involving payments of $20,000 or more must be in writing to be enforceable.
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