We learned that the Statute of Frauds and Article 2 of the UCC require that certain types of contracts must be in writing. Examples include:

• Contracts involving the sale of land; Contracts that by their own terms cannot be performed within one year; Contracts in which a person asks to answer for the debt of of another; and 
• Contracts for sale of goods over $500.

Stating the rules is easier than applying them. Take a look at Case 14.3.

One-Year Contract Robert S. Ohanian was vice president of sales for the West Region of Avis Rent a Car System, Inc. (Avis). Officers of Avis testified that Ohanian's performance in the West Region was excellent, and, in a depressed economic period, Ohanian's West Region stood out as the one region that was growing and profitable. In the fall of 1980, when Avis's Northeast Region was doing badly, the president of Avis asked Ohanian to take over that region. Ohanian was reluctant to do so because he and his family liked living in San Francisco, and he had developed a good team in the West Region, was secure in his position, and feared the politics of the Northeast Region. Ohanian agreed to the transfer only after the general manager of Avis orally told him "unless you screw up badly, there is no way you are going to get fired- you will never get hurt here in this company." Ohanian did a commendable job in the Northeast Region. Approximately one year later, at the age of 47, Ohanian was fired without cause by Avis. Ohanian sued Avis for breach of the oral lifetime contract. Avis asserted the Statute of Frauds against this claim. Who wins? Ohanian v. Avis Rent a Car System, Inc., 779 F.2d 101, Web 1985 U.S. App. Lexis 25456 (United States Court of Appeals for the Second Circuit)

Can Ohanian sue Avis for breach of an oral employment contract? Or can Avis defeat this claim by invoking the Statute of Frauds?