Smith and Benson make an oral contract for the sale of some land at a price of $500,000. After paying Smith $400,000 of the purchase price, Benson takes possession of the land. One month later, Smith wants to boot Benson off the land. His argument is that the parties' oral agreement is unenforceable under the Statute of Frauds. Which of the following is most correct?

Question

Quizplus · Accepted Answer

Smith is incorrect because Benson has partially performed by paying $400,000 and taking possession of the land, which takes the oral contract out of the Statute of Frauds. Partial performance can make an otherwise unenforceable oral contract enforceable.

Smith and Benson Make an Oral Contract for the Sale