Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 4

Conner, a family practitioner, worked under one-year contracts at a rural clinic operated by a hospital. During contract negotiations for the coming year, she asked that her time at the clinic be separated from her time at the hospital in order to help with a tax issue. During negotiations, she continued to work without a contract. She finally presented her case to the hospital's board of directors, who entered into an agreement to offer her a three-year contract that spelled out monthly salary and vacation days. They encouraged the administrator, attorneys, and the doctor's representative to work out the changes and to come back to them. Four days later the board met in emergency session and voted to rescind the earlier motion. They then made offers to other doctors for less lucrative contracts while continuing to employ Conner. After several months, she sued. The hospital defended by arguing the statute of frauds was not met. Is this correct? Why?