Joe Saw an Ad in a Paper for the Sale

Multiple Choice

Joe saw an ad in a paper for the sale of a house in a residential area of Victoria. He approached Sam, the owner, and after some negotiation Sam orally agreed to sell the house to Joe for $50,000. Joe gave Sam $10,000 cash as a partial payment, the rest to be given upon transfer of the house. Two days later, Sam changed his mind and sent Joe a letter referring to the deal and stating that he would not honour the agreement. Which of the following is correct with respect to the legal position of the parties? Assume all the facts can be proved.

A) If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract.
B) Sam will not be bound because no oral agreement is ever enforceable.
C) Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing.
D) Sam is not bound by the agreement as the contract was not in writing.
E) The contract is void unless it has been partially performed.