Ease Into Prep with a BAR^® Question of the Day

The correct answer is: (A) The seller, because price is an essential term that must be in writing.

A land sale contract is subject to the requirements of the Statute of Frauds. To comply, the contract must be in writing, signed by the party to be charged, and must contain all essential terms: a description of the property; a description of the parties; the price; and any conditions of price or payment, if agreed upon. Here, the written contract does not contain the price term and therefore the contract is invalid under the Statute of Frauds.

(B) Incorrect. The seller, because the buyer tendered a personal check.

This answer is incorrect because the seller is specifically arguing that the contract is invalid under the Statute of Frauds. It is the lack of a written price term that invalidates the contract. The fact that the buyer tendered a personal check is a breach, had the contract otherwise been valid.

(C) Incorrect. The buyer, because the price term is not an essential term, and courts will infer a reasonable market value price.

This answer is false because price is an essential term that must be contained in the written contract for the sale of land.

(D) Incorrect. The buyer, because the price term is not required and the seller is estopped from denying that the $ 150,000 price, to which he agreed, is a fair and equitable one.

This answer is false because price is an essential term that must be in writing along with a description of the property, a description of the parties, and any agreed-to conditions on payment or price.