Contracts & ExecutionQuestion 803 of 1605
A landowner orally promises to sell a vacant lot to a contractor, and both shake hands. When the landowner backs out, the contractor sues to enforce the oral sale. The strongest defense the landowner has is:
a.The object was unlawful
b.The contractor lacked capacity
c.Lack of consideration
d.The Statute of Frauds bars enforcement of an oral contract to sell real property
Explanation
A contract for the sale of real property must be in writing and signed by the party to be charged under the Statute of Frauds. A mere oral handshake to sell land is generally unenforceable, giving the landowner a Statute of Frauds defense. Consideration, capacity, and legality are not the problem here; the defect is the absence of a signed writing for a land sale.
Law Reference: California Civil Code §1624Practice all 1605 questions free — no signup required.
Related questions on this topic
- A contractor already under contract to frame a house for $40,000 demands an extra $5,000 midway through, claiming the job is 'harder than expected,' but the scope has not changed. If the owner reluctantly agrees, the promise to pay the extra $5,000 is generally:
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