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Contracts to Pay Debts of Deceased PersonsExecutors and administrators handle the estates of deceased persons.They gather the property of the deceased, pay all debts, and dividethe remaining property according to the terms of a will. Theexecutor is not personally responsible for the deceased person’s debts;these are paid out of the estate. If the estate lacks the money to pay alldebts, the executor may promise to pay the debts with his or her ownmoney. Such an agreement must be in writing to be enforceable.Example 3. When Morgan died, he had an estate worth $10,000but owed creditors $12,000. Morgan’s son, who was the executorof the estate, wanted to clear his father’s name. He made anoral agreement with the creditors to pay the additional $2,000owed by his father out of his own pocket. This oral agreement,however, would not be legally enforceable by the creditors.Contracts Requiring More Thana Year to PerformAll contracts must be written if they cannot be performed withinone year of the date they are made. The year legally begins when thecontract is made, not when the performance is to start.Example 4. Jake and Mr. Lucas enter an agreement in which Jakepromises to help paint the offices of the new Lucas Companybuilding on Michigan Avenue. Because the job is estimated totake 14 months, the contract must be in writing to be enforceable.In Example 4, if Jake had contracted to work for “as long asMr. Lucas continues to be president of the Lucas Company,” then theagreement would not have to be in writing because the time involvedwould be uncertain. Lucas might continue to be president of the companyfor many years. On the other hand, he might be president for onlya short time, and the contract could be completed in less than a year.DebtEasy credit and thehigh cost of living leadfar too many of us intodebt. Many peoplewho are in seriousfinancial trouble filefor bankruptcy to wipeout their debt. Didyou know that abankruptcy filing canstay on your recordfor 10 years and canaffect your ability toget a loan, acquire acredit card, and rentan apartment?Get involvedTake a money managementcourse at yourlocal communitycollege to learn howto budget, save, andinvest your money.Research differencesamong employersponsoredsavingsplans, IRAs, and RothIRAs.Contracts in Consideration of MarriageWhen two persons agree to marry, they enter into a valid, bindingcontract. The promises they make to each other serve as the considerationfor the contract. Agreements to marry have never required a writtencontract. Under present-day law, an agreement between two peopleto marry is generally not enforceable. Consequently, either party canbreak the agreement without being liable to the other.Chapter 10: Form of the Contract 211