Land sale contracts: Statute of Frauds

Question 1

Statute of frauds

Answer 1

To satisfy the statute of frauds, a land sale contract must be:

(1) In writing;
(2) Signed by party to be charged; and
(3) Contain the essential terms: the parties, a description of the property, and price/payment info.

Question 2

Undetermined terms

Answer 2

A contract for the sale of real property that requires further agreement on an essential element cannot be specifically enforced.

A sale price, however, may be in gross or where the price depends on the actual number of acres sold at a per-acre price.

Question 3

Rescission

Answer 3

Although a contract to transfer an interest in land must be in writing pursuant to the Statute of Frauds, the majority rule is that the rescission of such a contract may be oral.

Question 4

Exceptions: detrimental reliance on an oral contract

Answer 4

Even if there is no writing involved, a party may be entitled to specific performance if she has detrimentally relied on an oral real estate contract.

Question 5

Exceptions: part performance

Answer 5

Under the doctrine of part performance, either party may seek specific performance when the acts of performance constitute persuasive evidence of the existence of a contract.

Such acts include:

• payment of all or part of the purchase price,
• possession by the purchaser, or
• substantial improvement of the property by the purchaser.

Most jurisdictions require at least two acts to establish sufficient part performance.