Question

Smith and Benson make an oral contract for the sale of some land at a price of $500,000. After paying Smith $400,000 of the purchase price, Benson takes possession of the land. One month later, Smith wants to boot Benson off the land. His argument is that the parties' oral agreement is unenforceable under the statute of frauds. Which of the following is most correct?

A. Smith is correct, because the contract is for an amount greater than $500.
B. Smith is correct, because this is an oral contract for the sale of real estate.
C. Smith is incorrect, because the contract is for an indefinite period of time.
D. Smith is incorrect, because Benson paid part of the purchase price and took possession.

Answer 1

D. Smith is incorrect, because Benson paid part of the purchase price and took possession.

Step-by-step explanation:

Since in the question, there is a contract between the Smith and Benson for the sale of land but after paying the $400,000 the Benson takes the land possession. but according to the Smith it is an unenforceable contract under the statute of frauds.

So as Benson pay the amount of $400,000 and take the possession so in this case the Simon is incorrect

Hence, the option d is correct