Exam 12: Reality of Assent

Under partial performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and either has begun to permanently improve the land or has taken possession of the land, the courts will consider the contract partially performed, and this partial performance will amount to proof of the contract.

Reference - Lake House. Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing that he would sell "his house" to Rebecca for $300,000. Harry signs the top of the document. Rebecca does not sign at all. No merger clause is included in the contract. Harry backs out of the contract, and Rebecca sues him. He tells the judge that the statute of frauds is not satisfied because he did not sign the document at the end and also because Rebecca did not sign at all. He also tells the judge that, at any rate, the agreement referred to the house in town, not the house on the lake; and that under the parol evidence rule, he had the right to identify the correct house. Which of the following is true regarding Harry's assertion that the statute of frauds is not satisfied because Rebecca did not sign the document?

A[n] ___________ agreement is an agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party's property.

Under ___________, if the buyer in an alleged contract for the sale of land has paid any portion of the sale price, has begun to permanently improve the land, or has taken possession of the land, the courts will consider the contract partially performed, and this partial performance will amount to proof of the contract.

In ___________ the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

Reference - Portraits. Belinda, a famous portrait painter, agreed to paint Harry's portrait for $5,000. She also agreed to paint the portraits of Michelle's two Welsh Corgi dogs, Baby and Bree. Michelle agreed to pay Belinda $12,000 for the portraits. Belinda charged Michelle more because dogs annoyed her. Belinda met the spoiled dogs, and they really got on her nerves. Plus, she was behind on finishing Harry's portrait. Belinda, therefore, proceeded to assign the right to receive the money for the dog portraits and the duty to paint the dog portraits to her assistant, Fred. He eagerly accepted and painted the portraits. As payment for amounts she owed him for various duties, Belinda also assigned to Fred the right to receive payment from Harry. Neither the contract Belinda had with Harry nor the contract she had with Michelle expressly prohibited assignment or delegation of contractual rights and duties. Belinda finished the portrait of Harry and called him to come and pick it up. Meanwhile, a disgruntled secretary who disliked Belinda told both Michelle and Harry about the agreements with Fred. Michelle was furious and refused to pick up the portrait or pay anyone. Harry likewise refused to pay for his portrait claiming that the right to payment could not be assigned. What would be the most likely result if Fred sues Harry for the $10,000 payment?

Reference - Painted House. Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris. The contract between Billy and Jan did not contain an antiassignment clause. Billy, who was very busy, assigned the contract, including the right to payment and the duty to paint, to Richard who was interested in making some extra money and had experience painting. Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her. In fact, Richard never met Jan because he painted while she was at work. After Richard did a good job painting the house, Jan sent a check to Billy for $800. Billy needed the money to pay some bills, so he spent it. He thought he would have money coming in with which to pay Richard, but that did not happen. Richard asked Jan for $800 when it was not forthcoming from Billy. Jan refused. Richard said that he was going to sue her and Billy. Jan called Billy and told him that he had no right to assign the contract. Another problem involved disposal of debris. Although Richard was a good, competent painter, he forgot and left some old paint cans at Jan's house. Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash. Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility. What would be the likely result of a lawsuit brought by Richard against Billy to recover the $800?

Maurice is excited because a developer plans a subdivision full of high priced homes that will adjoin his property. Maurice is so pleased that he puts in a new swimming pool to celebrate. Maurice believes that the subdivision will significantly increase the value of his property. The developer, however, changes his mind and decides not to develop the subdivision. Maurice is angry and asks if he can sue the developer, particularly since he can establish reliance. What would you tell Maurice and why? Discuss whether you agree with the law on this issue and why or why not.

The ___________ in a third-party beneficiary contract is the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary.

Which of the following is a term for contracts within the statute of frauds involving promises to pay a debt of another if the other party fails to pay?

Which of the following is an exception as to when a secondary obligation needs to be in writing?

Which of the following was the result on appeal in the case in the text Shelby's, Inc. v. Sierra Bravo, Inc., involving the issue of whether an agreement to deposit debris and soil on land came within the statute of frauds?

A[n] ___________ is created when two parties enter into a contract with the intended end purpose of benefiting a third party.

Reference - Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book. Sam is not initially aware of the agreement. Betty pays no one. Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally. Bob later refuses to do so saying that promises to give gifts are not enforceable. He then moves out of town. Trudy tells both Sam and Sally that she is broke, that Sam needs to get his $40 for the book from Betty, and that Sally is owed $40 from Bob for her birthday present. What type of third-party beneficiary is Sally?

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

When a court deems a contract integrated, parol evidence is generally admissible.

Since its inception, English courts have expanded the number of cases falling within their statute of frauds.

Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any?

Contracts related to an interest in land fall within the statute of frauds.

List and discuss the questions and factors considered by a court in determining whether a party is an intended or incidental beneficiary.