Problem
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. 2 years later Meade quit. Novell then told Meade that she was entitled to $9,602 - 25 percent of the difference between the account receivable and The accounts payable as of Meades 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 outside processing for each of the years that she had worked for Novell. Meade filed a lawsuit against Novell for breach of contract.
i. The first group will evaluate whether the parties had an enforceable contract.
ii. The second group will decide whether the parties oral agreement falls within any exception to the Statue of Frauds.
iii. 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 a share of the company's income,, but claimed that they had agreed she would receive only 15 percent of the income from invoices, not 25 percent.