Which scenario illustrates the complete performance exception to the statute of frauds?

• A. A contract that can be performed within one year
• B. A contract that has been fully performed
• C. A contract for sale of goods over $500
• D. A contract for real estate

Answer: (B)

The main idea here is the complete performance exception to the Statute of Frauds. This rule lets a contract be enforceable even if it wasn’t reduced to writing when one party has fully performed all of its obligations. Once full performance occurs, there’s nothing left to enforce and no need for a written contract to prove the agreement.

In this scenario, the contract has been fully performed. That’s exactly when the complete performance exception applies: despite the lack of a written agreement, the performing party can enforce the contract because all duties have been completed.

By contrast, the other situations involve different circumstances. An agreement that could be performed within a year is a separate writing exception, not the complete performance exception. And contracts for real estate or for goods over a certain price point generally fall under the Statute of Frauds requiring a writing, unless there’s complete performance.