Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 1

Preston Exploration Co. (Preston) entered into purchase and sale agreements (PSAs) to sell certain oil and gas leases to Chesapeake Energy Corp. and G5F, LLC (Chesapeake). The PSAs stated that the leases to be conveyed were the ones that had marketable title and would continue for at least one year. Exhibits were attached to the PSAs and specifically referenced in them. The PSAs provided that Preston was to convey "[a]ll of Seller's right, title and interest in … oil and gas leases" as defined in Exhibit A. Among other items, the exhibit referenced the county, lease ID, lease name, lessee, effective date, gross acres, and net acres. The day before the sales were to close, Chesapeake said it would not close. Preston sued. Chesapeake claimed enforcement was barred by the Statute of Frauds. Was it?