I have a question about a real estate law.?

Question

A seller has written contract to sell his propert for $200,000, but the parties have an oral agreement to incress the price to $210,000 in court. Can both Contracts be introduced?

Answer 1

Generally speaking the oral contract will have no effect.

There are many reasons under the law for it and the exact reason would depend on the details of this particular case.

The Statute of Frauds stipulates that all contracts for the sale of land must be in writing. Further one who is contractually bound to preform under a prior contract has a duty to preform for the agreed upon consideration. The subsequent contract would have no effect unless the subsequent contract provides for additional or different consideration.

Answer 2

If you mean introduced as evidence, then the answer is probably yes.

I think, though, what you really want to know is whether the price increase will be enforceable. The answer to that is probably no.

There are a few potential problems, one of which is legislation. In many areas there are statutes that descend from the old English Statute of Frauds, which made in necessary for a contract respecting interests in land to be made in writing.

Even if you live in an area without a statute like this, which is unlikely, you will also have to overcome the requirement that consideration was given for the price increase. This means that the seller would have to give something extra in return for the price increase. For example an agreement to leave the furnishings for an extra 10,000 would satisfy the requirement for consideration.

To recap, you could tell the court about the price increase, but it probably won't make much difference.

Answer 3

The only type of contract that is required to be in writing is one involving real estate. That goes all the way back to the old English Statute of Frauds.

Answer 4

Yes. Oral contracts are as binding as written contracts...as long as both parties agree to be bound by the terms of the oral contract.