Contracts and Sales Multistate Bar Practice Exam

What is the key factor for a land contract to be removed from the statute of frauds?

1. Full payment of the purchase price

2. Full performance by the seller, such as passing title

3. Signing a written agreement with a notary present

4. Agreement on a written modification

The correct answer is: Full performance by the seller, such as passing title

In the context of contracts, particularly regarding the sale of land, the Statute of Frauds requires that certain contracts be in writing to be enforceable. One of the key exceptions to this requirement is full performance. When a seller has fully performed their obligations under the contract, such as passing title to the property, this can remove the contract from the statute of frauds. Full performance signifies that the seller has completed their duty, which establishes a certain level of reliance and commitment to the contract. This principle protects the parties involved and allows for the enforcement of agreements that have already been executed, even if they were not originally in the proper written form mandated by the statute. While full payment by the purchaser or other conditions may seem important, they do not serve the same purpose as complete performance by the seller in the context of removing the contract from the statute of frauds. The presence of a notary or mere agreement on written modifications does not inherently fulfill the original requirements of the Statute of Frauds either. Thus, the completion of the seller’s obligations effectively legitimizes the transaction despite any initial formalities.