Sam and Denise enter into an oral contract whereby Sam promises to sell his one-

Question

Sam and Denise enter into an oral contract whereby Sam promises to sell his one-acre land to Denise for $1,000,000. Sam and Denise perform according to the terms of this oral contract. Denise pays $1,000,000 and becomes the owner of Sam’s one acre of land. Which of the following is true with regard to this scenario?

Denise can seek to set aside the contract as the contract falls under the Statute of Frauds.

This transaction does not come under the Statute of Frauds.

In case of a breach, the money or the value of the service cannot be recovered as it is an oral contract.

Sam cannot seek to set aside the contract on the ground that there was no writing.   

Explanation / Answer

If two parties enter into an oral contract that falls under the Statute of Frauds and both parties have fully performed according to its terms, neither party can seek to set aside the transaction on the ground that there was no writing. However, if one has paid money or performed a service under an oral contract required by the Statute of Frauds to be in writing, the money or the value of the service may be recovered even though the executory part of the contract cannot be enforced.

Hence the correct option d. Sam cannot seek to set aside the contract on the ground that there was no writing.

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