Question

Imagine you have a client, Maddie Hayes, who is a commercial real estate developer. She wants to buy a new piece of property from Fred Turner for $50,000. The property includes an office building and a large parking lot.

Do you think the contract for the sale has to be in writing?

Select an option from the choices below and click Submit.


Yes, because this is a contract for the sale for real estate, so it falls within the statute of frauds.


No, this is not a contract for the sale of real estate, so it does not fall within the statute of frauds.

Answer 1

The contract for the sale of real estate must be in writing according to the statute of frauds. Maddie Hayes' intent to buy a property that includes an office building and parking lot falls under this requirement. A written contract is necessary to establish the legal terms and obligations in the real estate transaction.

Step-by-step explanation:

Yes, the contract for the sale of the property that Maddie Hayes wishes to buy from Fred Turner has to be in writing because it is a transaction involving real estate. According to the statute of frauds, certain types of contracts, including those for the sale of real estate, must be in writing to be enforceable. Since the property includes an office building and a large parking lot, it clearly falls within the category of real estate transactions.

Ownership of property allows individuals or firms the right to enter into contracts with other parties with respect to their property. In order to sell or buy property, a written contract establishes the terms and legal obligations of the partaking individuals, such is the case for Maddie and Fred. Additionally, real estate values and equity, as seen in the examples of Freda's house and Ben's house, are considerations that affect the overall transaction but do not negate the necessity of a written contract for the sale of the property.