Contracts and Sales Multistate Bar Practice Exam

Which condition does NOT constitute a type of performance that could remove a contract for land from the statute of frauds?

1. Payment for part or all of the purchase price

2. Possession of the property by the buyer

3. Production of a written agreement

4. Substantial improvements made to the property by the buyer

The correct answer is: Production of a written agreement

The rationale behind the correct choice lies in the principles governing the Statute of Frauds and the types of performance that can satisfy its requirements for contracts concerning land. The Statute of Frauds requires certain contracts, including those for the sale of land, to be in writing to be enforceable. However, there are exceptions to this rule based on the parties' actions, which can sometimes serve to remove a contract from the statute's requirements. In the case of the production of a written agreement, this action does not demonstrate performance of the contract; instead, it addresses the requirement that a contract must be written to be enforceable under the Statute of Frauds. The existence of a written agreement is independent of the actual performance of contract terms, such as payment, possession, or improvements made to the property. On the contrary, actions such as making payments, taking possession of the property, or making substantial improvements can indicate that the parties are engaged in the performance of the contract, which may serve as evidence of the contract's existence and enforceability without a formal written document. Thus, these actions can help to establish the terms of the agreement and show reliance upon it, which is key when discussing the exceptions to the Statute of Frauds.