Final answer:
The oral contract for the sale of a lumber mill is not enforceable by either party due to the requirements of the Statute of Frauds, which maintains that contracts for the sale of real property must be in writing. The correct answer is a.
Step-by-step explanation:
The question you've presented refers to whether an oral contract for the sale of immovable property, such as a lumber mill, is enforceable under what is generally known as the Statute of Frauds. The Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing to be enforceable. In most jurisdictions, contracts for the sale of real estate or interest in real property must be in writing to satisfy the Statute of Frauds.
This is to prevent fraud and perjury in the enforcement of agreements that are not made with certain formalities. Since the contract in question is an oral one and it is for the sale of a lumber mill, which is considered real property, the Statute of Frauds would typically render this oral agreement unenforceable unless it is put in writing and signed by the party or parties to be charged.
Therefore, before United Corporation takes possession of the lumber mill, the oral contract is not enforceable by either party. This means the correct answer to the question is b. neither party. The key concept here is the requirement of a written contract for the sale of real property. Had the contract been in writing, the transaction would likely adhere to the Statute of Frauds and be enforceable. Thus, parties intending to engage in such significant transactions should always ensure they follow legal requirements to create a binding and enforceable agreement.