RES exam question on Contract & Agency Law: Naomi has an oral agreement to buy land
Naomi has an oral agreement to buy land. There is no written contract, but with the seller's consent she paid a deposit and began renovation works. Consider: (i) An oral contract for the sale of land can never be enforced under any circumstances. (ii) Generally, a contract for the sale of land must be evidenced in writing to be enforceable (s 6(d) Civil Law Act). (iii) The equitable doctrine of part performance may, in limited circumstances, allow an oral land contract to be enforced. (iv) The acts of part performance relied on must point to the existence of a contract. Which statements are correct?
- A(ii), (iii) and (iv) only
- B(i), (iii) and (iv) only
- C(i), (ii) and (iv) only
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
A. (ii), (iii) and (iv) only
Explanation
Rule: writing is generally required (s 6(d) Civil Law Act), but equity's doctrine of part performance can enforce an oral land contract where the claimant's acts unequivocally point to a contract, to prevent it being used as an instrument of fraud.
Why the other options are wrong
- Application: (ii)–(iv) correct; (i) is wrong (over-absolute).
Study the concept behind this question: Remedies for Breach of a Property Contract
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