Reference no: EM132140940

Facts.  In 1983, Arlene and Donald Warner inherited a one-third interest in a home at 101 Molimo Street in San Francisco. The Warners bought out the other heirs and obtained a $170,000 loan on the property. Donald Warner and Kenneth Sutton were friends. In January 1984, Donald Warner proposed that Sutton and his wife purchase the residence. His proposal included a $15,000 down payment toward the purchase price of $185,000. The Suttons were to pay all mortgage payments and real estate taxes on the property for five years, and at any time during the five-year period they could purchase the house. All this was agreed to orally. The Suttons paid the down payment and cash payments equal to the monthly mortgage ($1,881) to the Warners. They paid the annual property taxes on the house. The Suttons also made improvement to the property. In July 1988, the Warners reneged on the sales/option agreement. At that time the house had risen in value to between $250,000 and $320,000. The Suttons sued for specific performance of the sales agreement. The Warners defended, alleging that the oral promise to sell real estate had to be in writing under the Statute of Frauds and was therefore unenforceable. The trial court applied the equitable doctrine of part performance and ordered specific performance. The Warners appealed.

Issue.

Does the equitable doctrine of part performance take this oral contract for the sale of real property out of the Statute of Frauds?

Why was the doctrine of part performance developed?

Who would have won if the statute of frauds were applied to this ?

Issue.

Does the equitable doctrine of part performance take this oral contract for the sale of real property out of the Statute of Frauds?