The One-Year Rule. Fernandez orally promised Pando that if Pando helped her win the New York state lottery, she would share the proceeds equally with him. Pando agreed to purchase the tickets in Fernandez's name, select the lottery numbers, and pray for

Question

divine intervention from a saint to help them win. Fernandez won $2.8 million in the lottery, which was to be paid over a ten-year period. When Fernandez failed to share the winnings equally, Pando sued in a New York state court for breach of her contractual obligation. Fernandez countered that the contract was unenforceable under the Statute of Frauds because the contract could not be performed within one year. Could the contract be performed within a year? Explain.

Answer 1

The one-year rule
Yes. The court held that the parties could fully perform their oral contract within one year from the date of its formation. The agreement was that Fernandez was to furnish the funds and Pando was to purchase the tickets, select the numbers, return the tickets, and pray. The winning numbers were scheduled to be drawn within days, and at that point the obligations of the parties became fixed, including Fernandez's obligation to share the prize with Pando. The fact that payment was to take place over a ten year period did not affect this obligation. Fernandez should have notified the state lottery division to divide the future payments equally between herself and Pando.