Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 7

Business Law Critical Thinking Group Assignment. Jason Novell, doing business as Novell Associates, hired Barbara Meade as an independent contractor. The parties orally agreed on the terms of employment, including payment of a share of the company's income to Meade, but they did not put anything in writing. Two years later, Meade quit. Novell then told Meade that she was entitled to $9,602-25 percent of the difference between the accounts receivable and the accounts payable as of Meade's last day of work. Meade disagreed and demanded more than $63,500-25 percent of the revenue from all invoices, less the cost of materials and outsideprocessing, for each of the years that she had worked for Novell. Meade filed a lawsuit against Novell for breach of contract.
1. The first group will evaluate whether the parties had an enforceable contract.
2. The second group will decide whether the parties' oral agreement falls within any exception to the Statute of Frauds.
3. The third group will discuss how the lawsuit would be affected if Novell admitted that the parties had an oral contract under which Meade was entitled to 25 percent of the difference between the accounts receivable and payable as of the day Meade quit.