Engineering Board Exam Reviewer · ECE · hard
A verbal agreement was made on January 2, 2024 to maintain a company's PABX system for two years, starting the following month. The company later refused to honor it. Can the service provider enforce it in court?
- No, it is unenforceable under the Statute of Frauds since it cannot be performed within one year, unless ratified or partly executed
- Yes, all oral contracts are enforceable
- No, because it is void
- Yes, but only through the NTC
Answer
A. No, it is unenforceable under the Statute of Frauds since it cannot be performed within one year, unless ratified or partly executed
Solution
Agreements not to be performed within one year from their making must be in writing (Art. 1403(2)(a)).
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