Gene And Gob: A Case Study

Gene and Gob have a verbal sales contract or agreement for the purchase of the ring in the amount of $800.00. Since it seems that the contract is not in writing, there is no enforceable contract. According to the Statue of Frauds, the contract must be in writing for “agreements to sell personal property for $500 or more.” (Liuzzo, 2016, p. 203)

Based on the scenario provided the money was exchanged in cash and there is no mention of a receipt being issued from Gob to Gene. Although, a complete agreement does not need to be in writing, “there must be some evidence of the intention of the parties. The contract also must be signed by the affected parties.” (Liuzzo, 2016, p. 269) Having a signed agreement would enable Gene protection if
the ring was reported stolen or lost if Buster had insurance on the ring. It would show that he purchased the ring from Gob who is the new owner of the home. Additionally, if there was a contract in writing it might include an addendum for sale with the right of return.

It is always to protect yourself anytime you purchase items in the amount of $500 or more, even when purchasing the items from friends and families. Not only to have a receipt of payment but also for tracking of personal expenses.