Contract Essay

1019 Words5 Pages
Pat was very frustrated because she wanted to purchase a home but lacked the funds or credit to do so even though Pat was expecting shortly to receive a one-half million dollar final installment payment for some land she sold several years earlier. Dan knew that Pat was very interested in purchasing a home and approached Pat with a proposal to assist Pat in buying a home. Dan told Pat that he would help Pat with the financing. After finding the home she wanted to buy for $250,000, Dan and Pat orally agreed that Dan would purchase the home and "when you come up with the money, I (Dan) will sell it to you (Pat) for $250,000 plus a fair commission to be determined." Dan purchased the home identified by Pat and the following week Pat moved…show more content…
Most contracts are valid despite the fact that they may be only oral. Dan was knowledgeable that Pat wanted to buy a home, which she was not financially qualified to purchase. Consequently, he offered to purchase the home and sell it to her, when she had the capital to do so. The statement of Don to Pat, “When you come up with the money, I will sell the home to you for $250,000, plus a fair commission to be determined”, and Pat’s search and identification of a suitable home, and Dan’s purchase supports each intent to be bound. In this case, the next week, Pat moved into the house, begins living in it, and made substantial improvements. The improvement consisted of installing new carpets, window coverings, and a patio cover. The improvements, spanning a period of six (6) months, amounted to a cost of $8,000. With respect to a contract, Dan might argue that there was not a contract, or that the contract was outside the Statue of Frauds. However, any arguments to nullify the Statue of Frauds are not likely to be successful. In most instances courts attempt to find evidence that this defense is not supportable. Performance is more relevant in this case. A contract for the sale of real property will be enforceable if the buyer has taken possession and has made permanent improvements upon it. Of course, the extent of the improvements required for enforcement varies from jurisdiction

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