A homeowner and a buyer verbally agree to sell a parcel of land for $150,000. The buyer pays $15,000 as a down payment, takes possession of the property, and begins substantial renovations. The homeowner later refuses to proceed, claiming that the oral agreement is unenforceable under the Statute of Frauds. Which of the following best explains whether the agreement can be enforced?
The buyer cannot enforce the oral agreement because the sale of real property requires a written contract to satisfy the Statute of Frauds.
The buyer cannot enforce the oral agreement because payment toward the purchase price does not satisfy the Statute of Frauds.
The buyer can enforce the oral agreement because the part performance doctrine applies, as the payment, possession, and renovations clearly indicate the existence of a contract.
The buyer can enforce the oral agreement because legal exceptions to the Statute of Frauds permit enforcement in cases involving clear evidence of performance.
The part performance doctrine allows enforcement of oral agreements that fail to meet the Statute of Frauds if certain actions by a party unequivocally indicate the existence of a contract. Courts typically require evidence of at least two key factors to invoke this doctrine: partial payment, taking possession, or significant improvements to the property. In this instance, the buyer made a payment, took possession, and started renovations, meeting the requirements for part performance and making the oral agreement enforceable.
The other answers are incorrect because they either misstate or oversimplify the law. While the Statute of Frauds typically requires a written agreement for real estate sales, the part performance exception allows for enforcement when specific criteria are met. Additionally, an outright partial payment without other actions is not sufficient on its own, and vague descriptions of legal exceptions fail to capture the specific reasoning behind part performance.
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