Why she has an enforceable contract to buy the house

Assignment Help Econometrics

Reference no: EM13200396

Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally con¬tracts to buy Smith's house for $100,000, with the closing (transfer of the deed) to take place on June1. Smith's lawyer, who is out of town on vaca¬tion, is to draft a written contract of sale on his return to his office on May 15. Because Frances's lease is terminating, Smith agrees to let her take possession of the house on May 1 if Frances gives him a "down payment" on the house of $5,000. Frances agrees and gives Smith the $5,000. She moves into the house on May 2, and the following weekend plants trees in the back yard. On May 10, Smith receives a written offer from Green to buy Smith's house for $120,000. Smith accepts Green's offer, asks Frances to move out of the house, and tries to return the $5,000 to Frances. Frances claims that she has an enforceable contract to buy the house. Smith claims that any such contract must be in writing to be enforceable under the Statute of Frauds. Who is correct and why?

Reference no: EM13200396

Questions Cloud

How many elephants need to be weighed : A study of elephants wishes to determine the average weight of a certain subspecies of elephants. The standard deviation of the population is 1600 pounds. How many elephants need to be weighed so find we can be 90% confident to be accurate within ..

Calculate the cost of reinvested profits : Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

What is the relationship between the length of the radius : what is the relationship between the length of the radius and the length of the circumference around a circle.

Who wants to buy a certain quarter acre of land : Eagle Properties, a real estate investment and sales firm, presents a form contract to its customer Floyd, who wants to buy a certain quarter acre of land in a proposed housing subdivision that Eagle is marketing.

Why she has an enforceable contract to buy the house : Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally con¬tracts to buy Smith's house for $100,000, with the closing (transfer of the deed) to take place on J..

How wide is the image on the stadium screen : a 42 inch- long guitar is 10.5-feet-long on a stadium screen. a drum is 21 inches wide. how wide is the image on the stadium screen?

Determine the firms after-tax cost of capital : Determine the firms after-tax cost of capital is the first step in making this decision. Boots has approached you with the following information to see if you can help him with his problem.

Can friendly finance succeed in a suit against suburban : Evergreen Landscapers, Inc., owes Friendly Finance Company $5,000. Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.

How useful are comparisons between real gdps of countries : how does the replacement of home production with production through markets affect real GDP. how does it affect the usefulness of comparisons of real GDP per capita at the end of the twentieth century with the same measure at the beginning of the ..

User Account

All Pages