Asked by Brandon Ernst on May 08, 2024
Verified
Sam orally agreed to sell his house to Humphrey. Humphrey wanted it ready for his family quickly, so after he paid Sam a 5% deposit, he had a new roof put on, new carpeting installed, and he renovated the kitchen. Sam now thinks the place looks great and has decided not to sell. A business law student told him he could back out of the oral agreement. Can he? Explain.
Enforceable Oral
Pertaining to oral agreements that are legally binding and can be enforced in a court of law, depending on the nature of the agreement and the jurisdiction.
Renovated
Renovation refers to the process of restoring or improving a structure, often bringing new life and functionality to an old or damaged building.
Deposit
A sum of money placed in trust or paid as an initial part-payment in a purchasing process to secure an agreement.
- Differentiate the enforceability of contracts made verbally from those established in written form.
- Describe scenarios exempting oral agreements from the statute of frauds enforcement requirements.
Verified Answer
AC
Anxious CactusMay 09, 2024
Final Answer :
In general, the statute of frauds would require a promise to convey land to be written. However, courts in many states will enforce this sale under the part performance exception if the transferee, Humphrey, has paid at least part of the purchase price and has either taken possession of the real estate or has started to make valuable improvements on the land
Learning Objectives
- Differentiate the enforceability of contracts made verbally from those established in written form.
- Describe scenarios exempting oral agreements from the statute of frauds enforcement requirements.