A buyer and seller orally agree to the sale of a commercial property for $500,000. The buyer pays a $50,000 down payment and takes possession of the property, beginning construction of a warehouse. However, no written agreement is ever signed. Later, the seller denies the existence of the agreement and refuses to transfer title. Can the buyer enforce the agreement in court?
Yes, because the buyer took possession of the property and made a partial payment.
No, because partial payment does not satisfy the essential terms of a real estate contract.
Yes, because an oral agreement was made, which demonstrates mutual assent to the sale.
No, because real estate contracts must be in writing to satisfy the Statute of Frauds.
The agreement, though oral, may be enforceable due to the buyer’s partial performance. Under the Statute of Frauds, real estate contracts must generally be in writing to be enforceable. However, an exception exists where partial performance has occurred, demonstrating the existence of the agreement. In this case, the buyer made a down payment and took possession of the property, which are acts consistent with the terms of the oral agreement. The other options are incorrect because they fail to account for the applicability of the partial performance exception or incorrectly assume the mere existence of an oral agreement suffices without actions corroborating it.
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