Reference no: EM131560463

Sally has lived in a rental condominium for ten years when she decides to buy another condominium. Her one-year lease will end on May 1. On April 15, she orally contracts to buy Halibert’s condominium for $100,000, with the closing (transfer of the deed) to take place on June1. Halibert’s lawyer, who is out of town on vacation, is to draft a written contract of sale on his return to his office on May 15. Because Sally’s lease is terminating, Halibert agrees to let her take possession of the condominium on May 1 if Sally gives him a “down payment” on the condominium of $5,000. Sally agrees and gives Halibert the $5,000. She moves into the condominium on May 2, and the following weekend she removes an interior wall and adds permanent shelving. On May 10, Halibert receives a written offer from Green to buy Halibert’s condominium for $120,000. Halibert accepts Green’s offer, asks Sally to move out of the condominium, and tries to return the $5,000 to Sally. Sally claims that she has an enforceable contract to buy the condominium. Halibert claims that any such contract must be in writing to be enforceable under the Statute of Frauds. Who is correct and why?