Question

"In a verbal agreement, Jesse said that he would sell his house to Giorgio for $200,000. Jesse later decided that he would like to keep his house instead. Giorgio can't enforce their verbal contract because it did not meet which of these requirements for validity?"

A. Consideration
B. Offer and acceptance
C. Statute of frauds
D. Legal capacity

Answer 1

Giorgio cannot enforce the verbal sale agreement with Jesse because it lacks written form as required by the statute of frauds, which is essential for real estate transaction contracts. Option C is correct.

Step-by-step explanation:

In the scenario described, Giorgio cannot enforce their verbal agreement for Jesse to sell his house due to a principle known as the statute of frauds. The statute of frauds is a legal concept that requires certain contracts to be in writing to be enforceable.

In particular, contracts for the sale of real property, like a house, must be in writing. While the scenario does mention an offer and acceptance and implies that consideration may exist, and while both parties may possess the necessary legal capacity to contract, the requirement that is missing and that invalidates the verbal contract in question is the requirement set by the statute of frauds.

Since agreements involving real estate transaction must be in writing, this provides a clear record of the contract terms and intent of the parties. The role of property rights is central to the concept of contracts, as they allow individuals to make legally binding agreements about the use of their property.