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[Courtroom Surprises] Alexandra Agrees to Sell Rishi Her House for $200,000

Question 4

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[Courtroom Surprises] Alexandra agrees to sell Rishi her house for $200,000. Alexandra, Rishi, and the house are all located in Tennessee. She also orally agrees to sell her used car to Rishi for $1,000. Alexandra and Rishi discuss the fact that the house needs some repairs. Alexandra gives Rishi a key and tells him to do whatever he wants with the house. In reliance on her promise to sell the house, Rishi sells his home, gets a loan, and has a new roof put on Alexandra's house because of leaks that needed to be repaired to prevent further damage. When presented with the written agreements of sale for the home and the car, however, Alexandra refuses to sign either. Rishi sues, and the case proceeds to trial. Alexandra tells the judge in court under oath that she orally agreed to sell the house but that she changed her mind before signing and that she believes she has protection under the statute of frauds. She tells the judge that no agreement was ever made regarding the car and that she also has protection under the statute of frauds regarding that matter.
-Regarding Rishi getting a loan and putting a new roof on the house, which of the following is true?


A) Rishi should have known better, and his actions would be of no use to him in attempting to enforce the contract.
B) The judge would consider his actions under the UCC as exceptions to the parol evidence rule.
C) His actions would likely amount to promissory estoppel, which establishes an exception to the statute of frauds.
D) His actions would be considered as admissions.
E) His actions would be considered only because Alexandra told the judge that she had orally agreed to the contract.

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