Seller and Buyer negotiate for the sale of 100 acres of land with a closing date

Question

Seller and Buyer negotiate for the sale of 100 acres of land with a closing date of January 15. Seller sends Buyer a Christmas card with a handwritten note detailing all the terms of their agreement including "See you on January 15 for the closing" and Seller signs this card. Buyer does not turn up at the closing and on January 16 Buyer advises Seller that he changed his mind and does not want to buy the land. If Seller sues Buyer for breach of contract, which of the following statements best describes the situation?

A.Because Buyer waited until January 16 (the day after the scheduled closing date), this is an ineffective rescission of the contract. Seller will win the lawsuit.

B.The oral contract will be enforceable if Seller has a videotape of the oral agreement entered into by the Buyer and Seller.

C.The oral contract is unenforceable under the Statute of Frauds. Seller will lose the lawsuit.

D.Because Seller sent a handwritten note to Buyer confirming the closing date, the oral agreement is enforceable against the Buyer. Seller will win the lawsuit.

Explanation / Answer

C) The oral contract is unenforceableunder the Statute of frauds. Seller will lose the lawsuit.

The Statute of frauds specifically states that certain kind of transactions need to be in writing and signed by the party to be charged, and should have sufficient content to be considered as evidence of a contract. We need to remember that for a contract to exist it is very important that both involved parties have signed the contract. Unless the buyer signs in acceptance of the terms of the agreement no contract is in existence. The contracts for transfer of interest in land is one of the listed transactions requiring an enforceable contract in writing with sufficient terms and conditions and signed by both parties, namely buyer and seller. Seller will lose the lawsuit as a christmas card with his signature even with terms and conditions mentioned does not constitute a valid contract without acceptance signed by the buyer.

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