Which statement is accurate regarding a Sale and Purchase contract?

Which statement is accurate regarding a Sale and Purchase contract?

• A. It must be in writing
• B. It can be oral
• C. It requires a witness
• D. It must be filed with a registry

Answer: (A)

A sale and purchase contract for a vessel (or most goods) is enforceable primarily when it is in writing. The writing serves as clear evidence of the key terms—what is being bought, the price, delivery terms, and other conditions—which helps prevent disputes about what was agreed. This is why the statement that it must be in writing is the best choice. Oral agreements can occur, but many jurisdictions treat them as unenforceable for these kinds of transactions under the Statute of Frauds, especially when large sums are involved. Requiring a witness is not a standard necessity for validity, and filing the contract with a registry is not how enforceability is established—registration may be relevant for transferring title or recording security interests, but it doesn’t make a contract enforceable on its own.

A sale and purchase contract for a vessel (or most goods) is enforceable primarily when it is in writing. The writing serves as clear evidence of the key terms—what is being bought, the price, delivery terms, and other conditions—which helps prevent disputes about what was agreed. This is why the statement that it must be in writing is the best choice.

Oral agreements can occur, but many jurisdictions treat them as unenforceable for these kinds of transactions under the Statute of Frauds, especially when large sums are involved. Requiring a witness is not a standard necessity for validity, and filing the contract with a registry is not how enforceability is established—registration may be relevant for transferring title or recording security interests, but it doesn’t make a contract enforceable on its own.