or $25,000 is enforceable is dependant upon the validity of the contract. Oral contracts are typically enforceable unless they fall under the statute of frauds, which requires certain contracts to be in writing. This includes several requirements, including the sale of goods over $500. However an exception to this rule is speciality items. If a manufacturer agrees to create specialty items for a client, once they begin to manufacture the goods, the contract is enforceable without a written agreement. Here, Lake was selling a $25,000 sound system to Soames, which falls under the statute of frauds and would typically require a written agreement. However, since Lake made the sound system personalized for the band’s “detailed specifications,” Soames is required to pay for it because it is not suitable for sale to another customer. Thus, Peter Lake is right about the enforceability of his contract with Pearly Soames for the sale of the sound system, and Soames is required to pay him for it.

Lake and Penn Offer

Whether or not Lake is entitled to the position offered by Beverly Penn depends on if a valid offer was made to him to begin with. In order for an offer to be valid and binding, it must be clearly communicated, including definite terms. This includes the willingness of the offeror to enter into an agreement, the offeror’s intent to form a binding contract, and the explicit communication of the offer and the terms to the offeree. On April 6, Penn wrote to Lake, “…Come on board right away, and I will sell you half of my business for $150,000…” Penn clearly stated the conditions of the sale and the letter was received by Lake. Penn showed an intent to enter into a contractual agreement with Lake. Accordingly, Penn did make a valid and binding offer to Lake to sell a portion of her business to him for $150,000.