specific performance & estoppel Flashcards
Specific Performance
An equitable remedy granted at the court’s discretion based on case facts.
The party seeking specific performance must prove their entitlement with clear, satisfactory, and unequivocal evidence.
Timing and Real Estate Contracts
Time is not generally “of the essence” unless expressly stated.
If time is of the essence, failure to perform on the agreed date constitutes a breach.
If time is NOT of the essence, a party can still perform within a reasonable time after the closing date
Liquidated Damages
A contractual provision that allows for predetermined damages if one party fails to perform.
Enforceability:
Enforceable if the buyer fails to meet contract terms.
Statute of frauds
Basic rule
oral contracts for sale of land invalid
Statute of frauds: Exceptions
*estoppe- if a party reasonable relied on oral contract and it would be unjust not to enforce conttact, then oral contract gets enforced (especially if the party did not believe for it to be in writing ever)
*Another exception- part peformance, paymenys alone is not an exception, must be combined with possession or improvements to property by buyer
Estoppel
Based on reasonable reliance.
If a party reasonably relies on an oral contract, and non-enforcement would be unjust, the contract may be enforced despite the Statute of Frauds.
Part Performance Doctrine
An oral contract may be enforced if part performance clearly indicates reliance on that contract.
Requirements for Part Performance:
Actual possession of the property.
Improvements made to the property by the purchaser.
Partial payment (alone is not enough unless paired with possession or improvements).
General Rule on Zoning Laws:
The existence of zoning ordinances does not make a title unmarketable.
However, a violation of such an ordinance does make the title unmarketable.
