Suzy Bartles enters into an oral contract to purchase a tract of land from Bill
ID: 1765445 • Letter: S
Question
Suzy Bartles enters into an oral contract to purchase a tract of land from Bill Hermes. The land is considered worthless, but Bartles feels that she has discovered a possible usage that would drastically increase the value of the land. To assure herself of the potential value of the land, Bartles orally hires an attorney to investigate the title and records associated with the land in question. Before gaining any information from her attorney, Bartles orally contracts with a builder to construct a huge building upon the site. Due to the size of the project, a completion time is difficult to predict. Bartles now discovers that the land is indeed useless, a fact she obtains through information from her attorney. Bartles now refuses to honor her contracts with Hermes, her attorney, and the builder. Must Bartles honor her contractual agreements? Please explain the outcome between Bartles and all three parties.Explanation / Answer
Contract of Suzy Bartles with bill Hermes:
The contract of Suzy Bartles with bill Hermes was an oral contract, so any contract which is to be enforced need to be presented in the form of a written document, so this contract can be accounted as a fraud.
Contract of Bartles with Attorney:
When Bartles hired an attorney it was a collateral agreement and it was not directly related to property and thus the contract is not subjected to a statue of frauds application, so she should honor this agreement or she can be sent a legal notice.
Contract of Bartles with the builder:
A construction project concerning the completion of the building must be evidenced by writing under the statue of frauds because real property is involved, the length of the time to conclude is the project is only an issue if it would be impossible to complete within a year, so she should honor this agreement.
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